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Income Tax Appellate Tribunal, MUMBAI BENCH “I” MUMBAI
Before: SHRI MAHAVIR SINGH & SHRI N.K. PRADHAN
ORDER
PER N.K. PRADHAN, AM
This is an appeal filed by the Revenue. The relevant assessment year is 2004-05. The appeal is directed against the order of the Commissioner of Income Tax (Appeals)-II, Mumbai [in short ‘CIT(A)’] and arises out of the assessment completed u/s 143(3) of the Income- tax Act 1961, (the ‘Act’).
The grounds of appeal
filed by the revenue read as under: "1. On the facts and in the circumstances and in law, the Ld. CIT (Appeals) has erred in directing to allow deduction u/s 80HHC without Flat Products Equipments Ltd. 2 deducting quantum of deduction u/s 80IB in contravention of section 80IA(9) of the Act.
2. The appellant prays that the order of the CIT (A) on the above ground be set aside and that of the Assessing Officer be restored.”
3. The same issue arose before the Hon’ble Bombay High Court in assessee’s own case in ITA No. 151 of 2010, wherein the following substantial question of law was decided : “Whether on the facts and in the circumstances of the case and in law, the Tribunal was right to holding that the deduction of profit and gains allowed u/s 80-IA/80-IB had to be deducted from the profits and gains of the appellant’s business on which deduction u/s 80HHC of the Act had to be computed?” The Hon’ble High Court, relying on its decision in the case of Associated Capsules Pvt. Ltd. v. DCIT (ITA No. 3036 of 2010 decided on 10.01.2011) directed the Tribunal to recompute the deduction in the light of above decision.
4. In compliance with the direction of the Hon’ble Bombay High Court, the case was taken up for hearing. At the time of hearing before us, the Ld. representatives of both the sides agreed that the matter relating to recomputation of the deduction permissible to the assessee can more appropriately be left to be done by the AO. They urge that this matter may, therefore, be restored to the file of the AO for recomputing the deduction allowable to the assessee. Accordingly, this matter is restored to the file of the AO with a direction to recompute the deduction permissible to the assessee in the light of the judgment of the Hon’ble Bombay High Court dated 11.01.2011 (supra) after giving reasonable opportunity of being heard to the assessee.