COMMISSIONER OF INCOME-TAX Vs. HERO EXPORTS

JUDGEMENT

(1.) The appellant (hereinafter described as 'the Revenue') has approached this Court by filing the present appeal, raising the following substantial question of law, arising out of order dated 23.3.2004, passed by the Income-tax Appellate Tribunal, Chandigarh Bench (B), Chandigarh (for short, 'the Tribunal') in I.T.A. No. 550/Chandi/99 for the assessment year 1996-97:

(2.) The contention raised on behalf of the Revenue is two-fold. Firstly, the order passed by the Tribunal is totally non-speaking and it has not even referred to the facts of the case. The appeal has been decided merely by referring to earlier order passed by the Tribunal. Secondly, it is submitted that on the issue as to whether the loss suffered from the trading is to be ignored while computing deductions under Section 80HHC of the Income-tax Act, 1961 (for short, 'the Act') is now squarely covered by a judgment of Hon'ble the Supreme Court in IPCA Laboratory Ltd. v. Deputy Commissioner of Income-Tax and therefore, the issue deserves to be decided in favour of the Revenue. On the other hand, learned Counsel for the respondent- assessee submitted that on a consideration of the judgment of Hon'ble the Supreme Court in IPCA Laboratory Ltd.'s case (supra), the benefit available to the assessee under Section 80HHC of the Act, in terms of the said judgment, will have to be reworked out. This could not be disputed by learned Counsel for the Revenue. Accordingly, we remit the case back to the Assessing Officer to recalculate the quantum of benefit available to the assessee in terms of Section 80HHC of the Act, as interpreted by Hon'ble the Supreme Court in IPCA Laboratory Ltd.'s case (supra).

(3.) The parties are directed to appear before the Assessing Officer on 16.10.2006 for further proceedings.