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2016 (10) TMI 1064 - HC - Income TaxAddition being the difference between the net present value of Sales Tax loan liability and actual liability - Held that:- It is an agreed position between the parties that the issue raised herein stands concluded by the decision of this court in Commissioner of Income-Tax vs. Sulzer India Ltd. [2014 (12) TMI 267 - BOMBAY HIGH COURT] in favour of the Respondent assessee. Excluding the deduction u/s 80IB from the profits of the business for determining deduction u/s 80HHC in view of section 80IA(9) - Held that:- Tribunal has allowed the Respondent assessee's appeal before it following the decision of this court in Associated 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 interest on delayed payments as income of the unit while working out deduction u/s 80IB - Held that:- This very issue viz. availability of Section 80IB of the Act which arises for our consideration in Commissioner of IncomeTax vs. Vidyut Corporation [2010 (4) TMI 229 - BOMBAY HIGH COURT ] wherein held the price realised by the assessee from the sale of goods manufactured by the industrial undertaking constitutes a component of the profits and gains derived from the eligible business. The purchaser, 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. Revenue appeal dismissed.
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