DCIT Vs Shilp Gravures Limited (ITAT Ahmedabad)
ITAT Ahmedabad held that in case of two contrary decision by non-jurisdictional High Courts, decision favourable to the assessee shall apply. Thus, order of CIT(A) allowing deduction u/s. 80IA of the Income Tax Act upheld.
Facts-
Assessee is engaged in the manufacturing and job work of electronically engraved copper roller, which are used for printing and packaging industries. In the return of income filed by the assessee with Revenue, the assessee has claimed deduction u/s 80IA to the tune of Rs. 1,56,66,658/- . This income was generated on account of wind mill business (sale of power). AO observed that the assessee is not eligible for deduction u/s.80IA of the Act.
CIT(A) allowed the appeal filed by the assessee. Being aggrieved, revenue has preferred the present appeal.
Conclusion-
It is well settled that if there are two contrary decision of Hon’ble High Court wherein the said High Court’s are non jurisdictional High Courts, then the decision favourable to the assessee shall apply, and more so the later decision of Hon’ble Delhi High Court has taken a view in favour of the assessee after considering decision of Hon’ble Karnataka High Court which has taken a view in favour of Revenue.
