DY. C.I.T. vs. LAKHANPAL NATIONAL LTD.

Facts

The Revenue, represented by the Dy. C.I.T., has filed two appeals before the High Court of Gujarat. Tax Appeal No. 377/2000 challenges the Income Tax Appellate Tribunal's (ITAT) order dated March 7, 2000, for Assessment Year (AY) 1989-99. Tax Appeal No. 378/2000 challenges the ITAT's order dated March 7, 2000, for AY 1988-89. The assessee, Lakhanpal National Ltd., had filed its return of income for AY 1989-99 declaring a total taxable income of Rs. 64,17,710/-. Following assessment proceedings, the assessee appealed to the Commissioner of Income Tax (Appeals) [CIT(A)], which was partly allowed. The assessee's further appeal to the ITAT was allowed, leading to the present appeals by the Revenue.

Held

The High Court of Gujarat, after hearing the learned advocates for the parties, noted that the respondent's advocate submitted that the issue in these appeals is squarely covered by the decision of the High Court in Commissioner of Income-tax v. Lakhanpal National Ltd. (304 ITR 365), which involved similar questions of law and fact. Consequently, the Court found no need for elaborate reasoning. The question of law was answered in favour of the assessee and against the Revenue. Both appeals were dismissed. The operative direction was the dismissal of both appeals.

Key Issues

1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee was entitled to the deduction claimed under Section 80-I of the Income Tax Act, 1961? The Revenue, as the appellant, is challenging the ITAT's decision allowing the deduction. The assessee, as the respondent, contends that the issue is squarely covered by a previous decision of the High Court of Gujarat in the case of Commissioner of Income-tax v. Lakhanpal National Ltd., reported in 304 ITR 365, where similar questions of law and fact were involved. The Revenue has not recorded any specific arguments in the judgment.