Rati Enterprises Vs CIT (Allahabad High Court)
Summary: The Allahabad High Court considered an income tax appeal filed under Section 260-A of the Income Tax Act, 1961 against the order dated 18.06.2010 passed by the Income Tax Appellate Tribunal, Delhi Bench “F”, New Delhi in I.T.A. No. 3921/Del/09 for Assessment Year 2002-03. The Tribunal had dismissed the assessee’s appeal. The appeal had originally been admitted on questions of law concerning, inter alia, the treatment of the deduction claimed under Section 80IB and the effect of Section 80IA(9) while computing deductions under other provisions contained in Heading C of Chapter VI-A of the Act.
At the outset of the hearing, learned counsel for the assessee/appellant stated that the appellant was confining the present appeal to question no. 6. That question concerned whether Section 80IA(9) mandated reduction of the amount of profits allowed as deduction under Section 80IA(1) from the profits of the business of the industrial undertaking while computing deduction under another provision under Heading C of Chapter VI-A. The question arose in the context of the Tribunal having followed the Special Bench decision in ACIT, Moradabad Vs. Hindustan Mint and Agro Products (2009) 315 ITR (AT) 401 (Delhi) (SB), contrary to the position taken by the Bombay High Court in Associated Capsules P. Ltd. Vs. DCIT (2011) 332 ITR 42 (Bom).
