TMI Blog2016 (10) TMI 1064X X X X Extracts X X X X X X X X Extracts X X X X ..... Capsules P. Ltd. vs. Deputy Commissioner of Income Tax [2011 (1) TMI 787 - BOMBAY HIGH COURT] as well as its own decision in the case of the same Respondent assessee for the Assessment Year 2003-04. Although an appeal has been preferred to the Supreme Court from the decision of this court in Associated Capsules P.Ltd. (supra), it has not been stayed. Therefore, it continues to be binding upon us. The fact that the Apex Court in Micro Labs Ltd. (2015 (12) TMI 708 - SUPREME COURT ) has, on account of difference of view between members of its Bench, referred this issue to its Larger Bench, would not by itself reduce the binding character of the decision of this court in Associated Capsules P.Ltd. (supra) and we are bound by it. Including i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 05. 2. The Revenue has urged the following questions of law for our consideration : (i) Whether on the facts and in the circumstances of the case and in law, the ITAT was right in deleting the addition made by A.O. u/s 41(1), being the difference between the net present value of Sales Tax loan liability and actual liability without appreciating that the assessee had enjoyed deduction of the Sales Tax liability in its income tax assessment in earlier years? (ii) Whether on the facts and in the circumstances of the case and in law, the ITAT was right in excluding the deduction u/s 80IB from the profits of the business for determining deduction u/s 80HHC in view of section 80IA(9)? (iii) Whether on the facts and in the circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this question ought to be admitted. (c) Although an appeal has been preferred to the Supreme Court from the decision of this court in Associated Capsules P.Ltd. (supra), it has not been stayed. Therefore, it continues to be binding upon us. The fact that the Apex Court in Micro Labs Ltd. (supra) has, on account of difference of view between members of its Bench, referred this issue to its Larger Bench, would not by itself reduce the binding character of the decision of this court in Associated Capsules P.Ltd. (supra) and we are bound by it. (d) Therefore, Question (ii), as proposed, does not give rise to any substantial question of law. Thus, not entertained. 5. Regarding Question (iii) : (a) The impugned order of the Tribunal h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, on account of the delay in payment of the sale price also pays to the assessee interest. This forms a component of the sale price and is paid towards the lag which has occurred in the payment of the price of the goods sold by the assessee. On these facts, therefore, the payment of interest on account of the delay in payment of the sale price of the goods supplied by the undertaking partakes of the same nature and character as the sale consideration. The delayed payment charges consequently satisfy, together with the sale price, the first degree test which has been laid down by the Supreme Court in Liberty India. For these reasons, the first question of law, is answered against the Revenue and in favour of the assessee. In the above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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