2005 (7) TMI 663 - HC - Income Tax

Summary

Issues involved: Interpretation of eligibility for exemption u/s 10A of the Income Tax Act, 1961 and entitlement to deduction u/s 80HHE.

Interpretation of eligibility for exemption u/s 10A:
The High Court upheld the Tribunal's finding that the respondent-assessee was not an old unit disentitled to the benefit of exemption u/s 10A. The matter was remitted back to the assessing officer with directions to allow exemption u/s 10A if all other requisites were satisfied. If not, the claim of deduction u/s 80HHE should be allowed after providing an opportunity to meet the requisites. The Court found the direction just and proper, as the determination of whether the assessee satisfies the pre-requisites for benefit under section 10A is within the assessing officer's purview.

Entitlement to deduction u/s 80HHE:
The Court also noted that the entitlement of the assessee to seek deduction u/s 80HHE was left to be determined by the assessing officer, contingent upon the assessee satisfying the pre-requisites stipulated for the grant of such benefit under the provision. No substantial question of law arose for consideration in the appeal, leading to its dismissal in limine.