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TMI Blog2014 (1) TMI 1408X X X X Extracts X X X X X X X X Extracts X X X X ..... 8-99 and 1991-92 and the appeals have been admitted on the following questions of law: "1. Whether the Tribunal was right in reducing the claimed deduction under Section 80IA, when the assessee did not consider allocation of certain expenditure while computing deduction under Section 80IA? 2. Whether in the facts and circumstances of the case, the Tribunal was right in holding that interest on interest is payable under Section 244, without going into the facts of the case, reason for the delay and the burden of the exchequer involved and various other issues?" 2. The respondent/assessee filed its return of income admitting a total income of Rs.25,30,861/- for the assessment year 1998-99. They claimed deduction under Section 80HHC of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 80IA of the Act, the matter was remitted back to the Assessing Officer to recompute the deduction following the earlier orders in the assessee's own case. As regards the interest under Section 244(1A) of the Act, the case was decided in favour of the assessee. 4. Aggrieved by such order, the Revenue as well as the assessee filed appeals before the Income Tax Appellate Tribunal (The Tribunal). The Tribunal following the decision of this Court in the cae of CIT vs. Wheels India Ltd., reported in 275 ITR 319 dismissed the Revenue's appeal. As regards deduction under section 80HHC of the Act on the exclusion of 90% of lease charges etc., the Tribunal held that the deduction form part of the total turnover under Section 80HHC of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by an assessee from the Revenue and no other interest on such statutory interest. 7. The aforesaid decision of the Hon'ble Supreme Court arose out of the reference made by a bench of two Hon'ble Judges referring the matter doubting the correctness or otherwise of the decision of the Hon'ble Supreme Court in the case of Sandvik Asia Limited vs. Commissioner of Income Tax and others reported in (2006)2 SCC 508 on which reliance was placed by the Tribunal in the instant case and the Hon'ble Supreme Court clarified that in the case of Sandvik Asia Limited (cited supra), the Hon'ble Supreme Court was considering the issue as to whether an assessee who is made to wait for refund of interest for decades be compensated for the great prejudice caus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng for the purpose of Section 80IA o the Act. On appeal by the Revenue, the Tribunal while considering the said issue set aside the finding rendered by the First Appellate Authority and restored the matter to the files of the Assessing officer with a direction to examine whether the above receipts were derived from manufacturing activites of the assessee and if it is found that the same were derived from manufacturing activity, it should be included in the profit of the industrial undertaking and such exercise to be done after affording opportunity of hearing the assessee. 10. Before us, the Revenue would contend that though the Rvenue have serious objection to the remand order passed by the Tribunal, the only objection voiced by learned S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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