Inox India Limited Vs DCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that when a certain profit or gain has already been granted deduction under section 80-IA to extent specified in first part of sub-section (9) of section 80-IA assessee’s claim of deduction under other provisions, including section 80HHC, would be restricted.
Facts- The assessee is engaged in manufacturing of vacuum insulated tanks and related products. During the relevant assessment years, the applicant sought deduction under sections 80HHC and 80-IA of the Act. The Assessing Officer scrutinized the case under section 143(3) of the Act and recalculated the allowable deductions. The AO added excise duty and sales tax to the total turnover while excluding lease rent and other incomes, categorizing them as “Income from Other Sources” rather than “Business Income”.
CIT(A) partly allowed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that regarding the issue of availability of deduction under Section 80HHC of the Act with respect to “lease rental”, in view of the decision referred to by the Counsel for the assessee in assessee’s own case in ITA No.756 of 2000 for assessment year 1997-98 to 1999-2000, in our view, the issue now stands decided in favour of the assessee and the assessee is eligible for deduction under Section 80HHC of the Act on “lease rental” income.
