THE COMMISSIONER OF INCOME TAX vs. SAMTEL COLOR LTD

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ITA - 852 / 2010HC Delhi14 July 20101 pages
For Petitioner: RASHMI CHOPRA
AI SummaryPartly Allowed

What did the High Court hold?

The High Court of Delhi admitted the appeal for hearing on the substantial question of law. The Court did not decide the merits of the issue in the provided text. The operative direction was to admit the appeal and issue notice, linking it with another appeal, ITA 561/2007. The core of the dispute, as framed in the question of law, is whether the deduction under Section 80HHC should be calculated based on book profits or profits computed under the normal provisions of the Act when determining the book profit under Section 115JB. The Court acknowledged the existence of this legal question and decided to proceed with its adjudication. No finding was reached on the merits of the question, nor was any specific relief granted or denied at this stage.

What were the facts?

This case involves an appeal filed by the Commissioner of Income Tax (Revenue) against an order of the Income Tax Appellate Tribunal (ITAT). The appeal was filed with a delay of 159 days in refiling. The High Court of Delhi considered an application for condonation of this delay, which was allowed. The appeal was admitted on a substantial question of law concerning the applicability of Section 80HHC deduction for the purpose of Section 115JB of the Income Tax Act, 1961. The assessment year(s) are not explicitly stated in the provided text. The dispute revolves around how the deduction under Section 80HHC should be computed when calculating book profit under Section 115JB.

What were the issues?

1. Whether for the purposes of Section 115JB of the Income Tax Act, 1961, the assessee is eligible for deduction under Section 80HHC of the Income Tax Act, 1961, as computed on the basis of book profit, and not with reference to the amount of Section 80HHC as computed under the normal provisions of the Act? Assessee's Contention: The assessee argues that the deduction under Section 80HHC should be computed based on book profit for the purpose of Section 115JB. (Implicitly argued by the assessee's counsel appearing before the High Court). Revenue's Contention: The Revenue contends that the deduction under Section 80HHC should be computed with reference to the amount calculated under the normal provisions of the Act, not book profit, when determining the book profit under Section 115JB. (Implicitly argued by the Revenue's counsel appearing before the High Court).

Which sections of the Income-tax Act were involved?

Section 115JB,Section 80HHC

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . . ITA 852/2010 . . . THE COMMISSIONER OF INCOME TAX ..... Appellant Through: Ms. Rashmi Chopra, Advocate. . versus . . SAMTEL COLOR LTD ..... Respondent Through: Ms. Kavita Jha, Advocate. . . CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE MANMOHAN . . O R D E R 14.07.2010 CM No. 11753/2010 (condonation of delay) This is an application for condonation of delay of 159 days in refiling the appeal. Having heard Ms. Rashmi Chopra, learned counsel for appellant and Ms. Kavita Jha, learned counsel for respondent, we are of the considered opinion that there is sufficient cause . . . ITA 852/2010 page 1 of 2. . warranting condonation of delay and accordingly, delay of 159 days in refiling the appeal stands condoned. Accordingly, application stands disposed of. . ITA 852/2010 Heard Ms. Rashmi Chopra learned counsel for appellant and Ms. Kavita Jha, learned counsel for assessee. Upon hearing the learned counsel for the parties, the appeal is admitted on the following substantial question of law:- 1. Whether for the purposes of Section 115JB of the Income Tax Act, 1961 the assessee is eligible for deduction u/s 80 HHC of the Income Tax Act, 1961 as computed on the basis of book profit and not with reference to the amount of Section 80HHC of the Income Tax Act, 1961 as computed under the normal provisions of the Act? . Issue notice. Let this appeal be linked with ITA 561/2007. . . CHIEF JUSTICE . . . MANMOHAN, J JULY 14, 2010 js . ITA 852/2010 page 2 of 2. . 11 . . $

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