COMMISSIONER OF INCOME TAX Vs. LAKHWINDER SINGH

JUDGEMENT

(1.) THE revenue has preferred I.T.A. Nos. 495 and 496 of 2006 against the common order dated 28 -9 -2005, passed by the Income Tax Appellate Tribunal, Delhi Bench, 'SMC, New Delhi ('the Tribunal'), in respect of assessment year 2001 -02 in the case of Lakhvinder Singh (IT. Appeal No. 5169 (Delhi) of 2004), and in respect of assessment year 2001 - 02 in the case of G.S. Exports (IT Appeal No. 5175 (Delhi) of 2004). It is claimed that the following substantial question of law under Section 260A of the Income Tax Act, 1961 Income Tax Act would arise for determination of this Court:

(2.) THE assessee -respondent is a proprietary concern and filed its return declaring total income of Rs. 75,000 on 29 -10 -2001. The assessing officer completed the assessment under Section 143(3) of the Act on a total income of Rs. 2,97,670, vide order dated 16 -1 -2004 (A -1). The assessee has claimed deduction under Section 80 -IB, amounting to Rs. 4,12,930, on the total business profit which included an amount of Rs. 13,80,673 on account of duty drawback. However, the assessing officer applying the judgment of Hon'ble the Supreme Court in the case of CIT v. : 1999ECR481(SC) , declined to exclude from the total business profit the amount so claimed while working out the allowable deductions under Section 80 -IB of the Act.

(3.) ON further appeal filed before the Tribunal, the decision taken by the Commissioner (Appeals) was confirmed and the appeal of the revenue was dismissed, vide its order dated 28 -9 -2005. The view of the Tribunal is based on the view taken by Delhi Bench of the Tribunal in the case of Asstt. CIT v. Vipin Sardana, (2005) 148 Taxman 41 (Mag.). The aforementioned view of the Tribunal is discernible from paras 6 and 7 which reads as under: