COMMISSIONER OF INCOME TAX Vs. VARDHMAN HOLDINGS LTD`

JUDGEMENT

(1.) ITA Nos. 50, 51, 52 and 73 of 2012 arise out of the common order dated 30.08.2011 (Annexure A -VI) passed by Income Tax Appellate Tribunal, Chandigarh, Bench 'B', Chandigarh (ITAT), disposing of four appeals for the assessment years 1994 - 95, 1995 -96, 2000 -2001 and 1997 -98 respectively of the assessee, on the issue of deduction under Section 80M of the Income Tax Act, 1961 (for brevity 'IT Act'). The identical questions of fact and law arise in these appeals filed under Section 260A of IT Act and therefore, taken up together for disposal.

(2.) FOR convenience, facts are taken from the ITA No. 50 of 2012, relating to the assessment year 1994 -1995. The respondent - assessee declared total taxable income of Rs.13,45,07,470/ - for the said Assessment Year.

(3.) IN appeal the Commissioner of Income Tax (Appeals) [CIT (A)] held that only the financial expenses incurred by the assessee could be taken into consideration for working out the deduction and not the personnel and administrative & miscellaneous expenses. The disallowance by the CIT(A) was calculated at Rs.5,49,000/ - instead of Rs.11,81,025/ -. In these terms, the appeal was partly allowed. The ITAT in the appeal filed by the Revenue as well as the respondent -assessee vide order dated 31.01.2007 (Annexure A -III) restored the matter to the AO with a direction to determine the issue in the light of decision of Special Bench, Income Tax Appellate Tribunal, Chandigarh in the case of Punjab State Industrial Development Corporation Ltd. v. DCIT, Special Range -II, Chandigarh (2006) 102 ITD 1 (Chd.) (SB).