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TMI Blog2009 (11) TMI 537X X X X Extracts X X X X X X X X Extracts X X X X ..... the deduction under section 80HH of the Income-tax Act (hereinafter referred to as the Act) amounting to Rs. 7,44,639 contending that the undertaking is situate in Belgaum, which is treated as a backward area under notification No. S. O. 165(E) datedDecember 19, 1986. However, the Assessing Officer rejected the said contention by contending thatBelgaumtaluk has been excluded for the purpose of benefit under section 80HH of the Act and accordingly, passed an order of assessment onMarch 29, 1996. Being aggrieved by the said assessment order, the assessee preferred I. T. A. No. 41/BGM/96-97 on the file of the Office of the Commissioner of Income-tax (Appeals), Belgaum, and the appellate authority by order dated October 7, 1996, allowed the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal, Panaji Bench, Panaji, confirming the order passed by the Commissioner of Income-tax (Appeals), Belgaum, holding that Belgaum is a backward area as per the notification dated December 19, 1986, is contrary to law and perverse and arbitrary as to call for interference in this appeal ?" 4. We answer the aforesaid substantial question of law in the negative against the Revenue for the following reasons. 5. The fact that the assessee is having manufacturing unit inBelgaum, is not in dispute. It is also not in dispute that the assessees of backward areas, who are entitled to claim benefit under section 80HH of the Act have been notified by Notification No. S. O. 165(E), datedDecember 19, 1986, and the said notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 19, 1986, declaring back- ward areas as referred to above that in respect of Districts of Belgaum, Bidar, Bijapur, no taluks have been excluded. However, in respect of Districts of Dharwad, Gulbarga, Mysore, North Kanara, South Kanara, Rai- chur, Tumkur, certain taluks of the said Districts have been excluded and in respect of Gulbarga District, taluks of Chittapur. Sedam andBelgaumhave been excluded. As the notification reads "Gulbarga(excluding Chittapura taluk, Sedam taluk andBelgaumtaluk)" what is excluded in the notifica- tion is Chittapur taluk, Sedam taluk andBelgaumtaluk of Gulbarga District and no taluk is excluded in the District of Belgaum as per the notification. Therefore, the concurrent finding arrived at by the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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