NAHAR EXPORTS LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This is an appeal filed by the assessee raising following substantial questions of law, arising out of order passed by the Income-tax Appellate Tribunal, Chandigarh Bench 'B', Chandigarh (for short 'the Tribunal'), in ITA No. 76/Chd/2002 dt. 28th July, 2005, for the asst. yr. 1998-99:

(2.) The facts in brief are that the assessee, who is engaged in the business of manufacture, export and trading in cotton yarn, during the assessment year, declared income from sale of import licence and claimed a deduction under Section 80-IA of the IT Act (for short 'the Act") for the same. Claim of the assessee was disallowed by the AO relying upon judgments of Hon'ble the Supreme Court of India in CIT v. Sterling Foods (1999) 153 CTR (SC) 439 : (1999) 237 ITR 579 (SC) and Madras High Court in Fenner (India) Ltd. v. CIT (1999) 151 CTR (Mad) 30.

(3.) The appeal on this issue filed by the assessee against the assessment order was rejected by the CIT(A) vide order dt. 24th Dec, 2001 relying upon the order passed by its predecessor rejecting a similar claim for the earlier year. Even the second appeal of the assessee before the Tribunal was also rejected with the following findings: