TMI Blog2014 (1) TMI 1408X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals M/s. Subbaraya Aiyar JUDGMENT (The Judgment of the Court was made by T. S. Sivagnanam, J.) These Tax Case (Appeals) by the Revenue are directed against the common order dated 10.11.2006 passed by the Income Tax Appellate Tribunal in I.T.A.Nos.916/Mds/2002, 968/Mds/2001, 1947/Mds/2002 and 1948/Mds/2002 for the assessment years 1998-99 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 in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Bombay High Court in the case of Sudarshan Industries vs. CIT reported in 245 ITR 769 allowed the appeal filed by the assessee. As regards the application of explanation (baa) with regard to receipt of service charges etc., the First Appellate Authority affirmed the order passed by the Assessing Officer. With regard to computing deduction under 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 Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... LP(C ) No.11406 of 2008 and etc.batch dated 18.09.2013 wherein the Hon'ble Supreme Court pointed out that the Legislature by the Act 4 of 1988(w.e.f. 01.04.1989) has inserted Section 244A to the Act, which provides for interest on refunds under various contingencies and that it is only that interest provided for under the Statute, which may be claimed 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th in the assessee's own case for the assessment year 1992-93 in ITA Nos.85/96-97 and for the assessment year 1993-94 in ITA No.75/1996-97 in respect of similar deduction under 80 HHC of the Act. For the said reason the First Appellate Authority directed the Assessing Officer to not to reduce the above expenses from the profits of the industrial undertaking 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 wer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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