HC to decide reduction of 90 per cent of net commission received by assessee from profits of business for computation of deduction u/s. 80HHF

SUPREME COURT OF INDIA

Commissioner of Income tax, City-II

Versus

Star India (P.) Ltd.

TRANSFERRED CASE (CIVIL) NO. 118 OF 2011

AUGUST 29, 2012

ORDER

1. Heard learned counsel on both sides.

2. The question which requires to be answered in this case is as follows:

“Whether, on the facts and circumstances of this case and in law, the Income Tax Appellate Tribunal was correct in directing the Department to reduce 90% of the net commission received by the assessee from the profits of the business for computation of deduction under Section 80HHF of the Income Tax Act, 1961?”

At the relevant time, a group of matters on the interpretation of Section 80HHC of the Income Tax Act, 1961, was pending in this Court in the case of Topman Exports v. CIT [2012] 205 Taxman 119 as well as in the case of ACG Associated Capsules (P.) Ltd. v. CIT [2012] 205 Taxman 136. Later on, Topman Exports (supra), and M/s. ACG Associated Capsules (P.) Ltd. (supra), were decided on 8th February, 2012. One of the points which the Department raised was that the provisions of Section 80HHF of the Act may not be identical to the provisions of Section 80HHC of the Act. Consequently, this case was de-tagged.

3. Under the above circumstances, learned counsel for the petitioner-assessee seeks permission to withdraw this transferred case so that the High Court can answer the above question on the interpretation of Section 80HHF of the Act in accordance with law.

4. According to learned counsel for the assessee, there is no difference between the provisions of Section 80HHC and Section 80HHF of the Act, whereas, according to learned counsel for the Department, there is a difference between these two sections and their respective applicability.

5. Under the above circumstances, we request the High Court to decide the above question in accordance with law expeditiously, if possible, within a period of three months from today. The High Court may also consider in that light the judgement of this Court in ACG Associated Capsules (P.) Ltd. (supra).

6. The transferred case is, accordingly, disposed of as withdrawn.

NF