C.I.T. vs. MANDIDEEP ENGG. & PACKING INDUSTRIES

1 ITA No.86/2000 Commissioner of Income Tax Mandideep Engineering & Bhopal Packing Industries (P) Ltd.

25.4.2013 Shri Sanjay Lal, Counsel for appellant. Shri Mukesh Agrawal, Counsel for respondent. This appeal is directed under Section 260-A of the Income Tax Act, 1961 against an order dated 26.11.1999 by the Income Tax Appellate Tribunal, Indore Bench, Indore by which prayer of the appellant for reference of the matter under Section 256(1) of the Income Tax Act was declined. The appellant herein had made a prayer to the Tribunal for referring following questions for the opinion of this Court:- “(1) Whether on the facts and in the circumstances of the case, the Hon'ble ITAT was justified in law in setting aside the order of the ld. CIT(A) and deleting the disallowances made by the AO on account of claims of deduction u/s 80HH and 80-I of the IT Act? (2) Whether on the facts and in the circumstances of the case, the Hon'ble ITAT was justified in law in holding that the adjustments made to the deduction u/s 80HH and 80-I by reducing the amount of deduction u/s 32AB from the business profits was outside the scope of section 154 even though it was clearly according to law in view of the clear provisions of section 80AB and 80B(5) of I.T.Act? (3) Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was justified in law in entertaining the appeal of the assessee and allowing relief to it even though the assessee had agreed to the rectification on account of deduction u/s 32AB made in the computation of deduction u/s 80HH and 80-I without considering the specific observation of the AO in this regard in the order under consideration and finding of the ld. CIT(A) that no appeal could lie on an agreed addition/disallowance? (4) Whether on the facts and in the circumstances of the case, the Hon'ble ITAT was justified in law in deleting the addition made by the AO by disallowing the claim u/s 80HHC even when the required report 2 ITA No.86/2000 Commissioner of Income Tax Mandideep Engineering & Bhopal Packing Industries (P) Ltd.

25.4.2013 as per provisions of section 80HHC(4) was not filed alongwith the return of Income?” It appears that the matter was placed before a Division Bench of this Court on 21.11.2001 and the Division Bench of this Court considering the merits of the case found that following substantial questions of law arise in the matter, which read as under:- “(a) Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was justified in law in holding that the adjustments made to the deduction u/s 80 HH and 80-I by reducing the amount of deduction u/s 32 AB from the business profits was outside the scope of section 154 even though it was clearly according to law in view of the clear provisions of section 80 AB and 80B(5) of Income-tax Act? (b) Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was justified in law in deleting the addition made by the Assessing Officer by disallowing the claim u/s 80HHC even when the required report as per provisions of section 80HHC(4) was not filed alongwith the return of Income?” As the Division Bench has already expressed an opinion that the aforesaid two substantial questions of law arise for determination by the Court, we find it appropriate to direct the Tribunal to refer the matter of the appellant for reference on the aforesaid two questions. Accordingly, this appeal is allowed. The Tribunal shall make a reference within a period of 90 days from the date of communication of this order. With the aforesaid directions, this appeal is finally disposed of, with no order as to costs. (Krishn Kumar Lahoti)

(M.A.Siddiqui) C. Acting Chief Justice Judge