Deputy Commissioner of Income Tax vs Blue Bell Polymers (P) Ltd.

D.A. Mehta, J.—At the time of admission of appeal following substantial question of law has been formulated by the High Court:

Whether, the Tribunal is right in law and on facts in directing to allow deduction under Sections 80HHA and 80-I simultaneously ?

The assessment year is 1990-91, the relevant accounting period being financial year ended on 31st March, 1990. The assessee, a private limited company, claimed deduction, both u/s 80HHA and Section 80-I of the IT Act, 1961 (the ''Act''). The AO, after hearing the assessee, came to the conclusion that deduction claimed u/s 80HHA is to be allowed first and while granting relief u/s 80-I of the Act the amount granted as deduction u/s 80HHA of the Act is required to be reduced from the relief allowable u/s 80-I of the Act. The assessee carried the matter in appeal before the CIT(A), who upheld the contention of the assessee that both the provisions operate independently and deductions are allowable under both the provisions without any amount being reduced from the relief available u/s 80-I of the Act. The Tribunal, vide its order dt. 8th July, 1999, has confirmed the order of the CIT(A) dismissing the appeal of the Revenue.''

Heard Mrs. M.M. Bhatt, learned standing counsel for the appellant Revenue. Though served, there is no appearance on behalf of the respondent assessee.

The issue raised is no longer res integra and hence, it is not necessary to set out the facts and contentions in detail. In the case of Commissioner of Income Tax Vs. Amod Stamping, , this Court has, while deciding similar controversy in relation to provisions of Section 80-I of the Act and Section 80HH of the Act followed earlier decision of this Court in the case of Commissioner of Income Tax Vs. Sidhpur Isabgul Processing Co. Ltd., whereunder similar issue relating to relief under Sections 80HH and 80J of the Act was decided by the Court.

Applying the ratio of both the aforesaid decisions of this Court to the facts of the case, it is apparent that in absence of any provision which restricts relief u/s 80-I of the Act to the extent the relief is granted u/s 80HHA of the Act, the impugned order of the Tribunal does not merit interference. The Tribunal has not committed any error in granting deductions, both under Sections 80HHA and 80-I of the Act simultaneously without reducing the relief available u/s 80-I of the Act by the amount of deduction granted u/s 80HHA of the Act.

Accordingly, the question is answered in the affirmative i.e. in favour of the assessee and against the Revenue. The appeal is dismissed accordingly. There shall be no order as to costs.