Commissioner of Income Tax vs Prasad Productions P. Ltd.

K. Raviraja Pandian, J.—The relevant assessment years are 1996-97 to 2001-02. The assessee is a limited company and is engaged in the business activities such as production and exploitation of motion pictures, printing and processing of films in the laboratories owned by the company, erection of sets and recovery of set charges. Recovery charges for video digital (most modern technique) from various cine producers and T.V. serial producers, advertising companies and generation of power through wind mills. The assessee filed its return of income for the assessment years 1996-97 to 2001-02. The Assessing Officer, relying on the decision of the Income Tax Appellate Tribunal in the case of Sarasa Movies in I.T.A. No. 157/Mds/96, inter alia, disallowed the claim of the deduction u/s 80HHC on the ground that there was no export sale by the assessee. On appeal, the Commissioner of Income Tax (Appeals), dismissed the appeal by following the Tribunal''s order aforesaid. Aggrieved by that order of the Commissioner of Income Tax (Appeals), the assessee filed a second appeal to the Income Tax Appellate Tribunal. The Income Tax Appellate Tribunal, following the judgment of the Bombay High Court in the case of Abdulgafar A. Nadiadwala Vs. Assistant Commissioner of Income Tax and Others, decided the issue in favour of the assessee. The correctness of the same is now canvassed by the Revenue by filing the above appeals and formulating the following questions of law:

Whether, in the facts and circumstances of the case, the Tribunal was right in treating the transfer of rights for manufacture of cassettes outside India as export of goods eligible for deduction u/s 80HHC for the assessment years 1996-97, 1997-98, 1998-99, 1999-2000, 2000-01 and 2001-02, when the relief for the same is available u/s 80HHF only from the assessment year 2000-01?

Whether, in the facts and circumstances of the case, the export of cassettes can be equated with export of goods for the purpose of Section 80HHC?

The learned Counsel for the Revenue submitted that this Court, in an identical set of facts, in respect of an assessee who engaged in the production and exporting of the recorded CDs outside India, has held that the assessee in that case is entitled to the benefit of Section 80HHC following the decisions in the case of CIT v. R. Rajinikanth reported in [2007] 295 ITR 523 (Mad), Commissioner of Income Tax Vs. Superstar Music and Superstar Exports, and Commissioner of Income Tax Vs. V.C. Kuganathan, .

Following the same, the present appeals are also dismissed as there is no question of law much less substantial question of law for entertainment of these appeals. Consequently, connected miscellaneous petitions are also dismissed.