2008 (11) TMI 49 - HC - Income Tax

Issue pertains to allowance of deduction u/s 80-IB on an income which according to the Revenue arose to the assessee from its industrial undertaking located in Agartala unit due to refund of excise duty and not by way of a profit derived from any business of the said industrial undertaking in view of decision in assessee s own case appeal of revenue is liable to be dismissed

Summary

Issues: Appeal under Section 260A of the Income Tax Act against Tribunal's judgment on deduction under Section 80-IB for income arising from industrial undertaking due to excise duty refund, and Tribunal's consistency based on previous year's order.

Analysis:
1. The appeal under Section 260A of the Income Tax Act was filed by the Revenue against the Tribunal's judgment regarding the allowance of deduction under Section 80-IB for income arising from an industrial undertaking in Agartala unit due to a refund of excise duty. The Revenue contended that the income did not qualify as a profit derived from the business of the industrial undertaking. The Tribunal had previously dismissed a similar appeal for the assessment year 2000-01, and in the current assessment year 2001-02, it upheld its decision based on the earlier order, resulting in the dismissal of the Revenue's appeal.

2. The Tribunal's consistency in its decisions for the assessment years 2000-01 and 2001-02 was a crucial aspect of the case. Despite the Revenue's appeal against the Tribunal's order for the assessment year 2000-01, which was dismissed by the Court, the Tribunal maintained its stance in the subsequent year. The Court's dismissal of the Revenue's appeal for the assessment year 2000-01 in a separate case further reinforced the Tribunal's decision for the current assessment year, leading to the ultimate dismissal of the present appeal under consideration.

3. The legal proceedings involved a detailed examination of the application of Section 80-IB of the Income Tax Act to the specific circumstances of the case, focusing on the nature of the income arising from the industrial undertaking in Agartala due to the excise duty refund. The Tribunal's reliance on its previous order and the subsequent dismissal of the Revenue's appeal by the Court highlighted the consistency and precedent set by the Tribunal in interpreting and applying the relevant provisions of the Act. The judgment underscored the significance of judicial consistency and adherence to established legal principles in tax matters, ensuring uniformity and predictability in the application of tax laws.