ASSISTANT COMMR.OF I.T.INDORE vs. M/S NEW SACK PVT.LTD

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C.A. No.-006914-006914 - 2009Supreme Court09 October 20092 pages
For Petitioner: B. V. BALARAM DASFor Respondent: PRATIBHA JAIN
AI SummaryRemanded

What did the Supreme Court hold?

The Supreme Court noted that the question of law regarding the interpretation of Section 80IA of the Income Tax Act, specifically whether export incentives should be deducted from eligible income for the purpose of claiming deduction, had not been answered by the Income Tax Appellate Tribunal or the High Court. The Court granted the appellant liberty to move the High Court to raise this issue specifically. If the High Court found that factual findings were necessary to answer the question, it was empowered to remit the case to the Income Tax Appellate Tribunal for disposal on merits concerning only that question. The Supreme Court did not decide the issue on merits.

What were the facts?

The appeal arose from an order concerning the assessment year(s) not explicitly stated. The Assistant Commissioner of Income Tax, Indore (Appellant/Revenue) challenged a decision that allowed M/s. Neo Sack Private Limited (Respondent/Assessee) to claim deduction under Section 80IA of the Income Tax Act on the entire eligible income, without reducing export incentives. The Income Tax Appellate Tribunal and the High Court had not specifically addressed this issue. The Supreme Court granted leave to appeal and directed the appellant to move the High Court to raise the issue.

What were the issues?

1. Whether, on the facts and circumstances of the case, the assessee was entitled to the deduction under Section 80IA of the Act on the amount of entire eligible income without reducing the amount of export incentive from the same? (Question of law/mixed law and fact, turning on Section 80IA). Assessee's Contention: Not recorded in the judgment. Revenue's Contention: The Revenue contended that export incentives should be reduced from the eligible income before calculating the deduction under Section 80IA.

Which sections of the Income-tax Act were involved?

Section 80IA

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.6914 OF 2009 (Arising out of S.L.P. (C) No.26391 of 2008) Assistant Commnr of Income Tax, Indore ...Appellant(s) Versus M/s. Neo Sack Private Limited ...Respondent(s)

O R D E R Leave granted.

By consent, the matter called out and taken up for hearing.

In our view, an important question of law arises for interpretation of Section 80IA of the Income Tax Act [for short, “the Act”]. The question, as framed at Page 5 of the special leave petition, reads as under: “Whether on the facts and circumstances of the case the learned Courts below were right in holding that the assessee was entitled to the deduction under section 80IA of the Act on the amount of entire eligible income without reducing the amount of export incentive from the same?”

The above question has neither been answered by Income Tax Appellate Tribunal nor by the High Court.

We grant liberty to the appellant herein to move the High Court and raise the issue specifically, particularly in view of the fact that an important ...2/- question of law on interpretation of Section 80IA of the Act arises for determination.

In case the High Court finds that the answer to the above question needs factual finding(s), it may remit the case to Income Tax Appellate Tribunal for disposal on merits the above question only in accordance with law.

Accordingly, civil appeal stands disposed of.

No order as to costs. ......................J. [S.H. KAPADIA] ......................J. [AFTAB ALAM] New Delhi, October 09, 2009.

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