COMMISSIONER OF INCOME TAX Vs. VARDHMAN POLYTEX LTD.

JUDGEMENT

(1.) CHANDIGARH Bench 'B', Chandigarh (for short 'the Tribunal') in ITA No. 458/Chd/2000, for the asst. yr. 1995 -96, raising the following substantial question of law :

(2.) BRIEFLY the facts of the case are that the assessee filed its return of income for the assessment year in question on s. 143(3) of the Act, the deduction claimed by the assessee under s. 80HHC of the Act was recomputed by including sales -tax and excise duty in the total turnover. Aggrieved against this action of the AO, the assessee went in appeal before the Commissioner of Income -tax (Appeals) [for short 'the CIT(A)'], who relying upon the order passed in appeal filed by the assessee for the asst. yr. 1994 -95 decided the issue in favour of the assessee. The Revenue, not accepting the order of CIT(A), further challenged the same before the Tribunal. The Tribunal relying upon a Special Bench decision of the Tribunal, Calcutta, in the case of IFB Agro Industries Ltd. vs. Dy. CIT (2003) 78 TTJ (Cal)(SB) 177 : (2002) 83 ITD 96 (Cal)(SB) rejected the appeal filed by the Revenue. The relevant part of the impugned order of the Tribunal is extracted below :

(3.) WE have heard Dr. N.L. Sharda, advocate, counsel for the Revenue and Shri Akshay Bhan, advocate, counsel for the respondent and perused the record carefully.