TMI Blog2001 (10) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... e before deducting depreciation and investment allowance?" - Thus the second question decided and answered in favour of the Department and against the assessee. Thus, question No. 1 is decided in favour of the assessee and against the Department is answered. The second question is answered in favour of the Department and against the assessee. - - - - - Dated:- 30-10-2001 - Judge(s) : N. N. MATHUR., O. P. BISHNOI. JUDGMENT The Income-tax Appellate Tribunal, Jaipur Bench, has referred the following questions of law for the opinion of this court: R.A. Nos. 19 and 20/JP of 1989: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the amount of Central Government subsidy is not dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er allowing the depreciation and investment allowance. On appeal, the Commissioner of Income-tax (Appeals) after considering the relevant provisions of section 80AB held that the assessing authority rightly calculated deduction under section 80HH on the net income as per the provisions of the Act. In second appeal, the Tribunal allowed the appeal, following its earlier decision in Digchem Industries' case [1987] 2 TTJ 593 (JP). We have heard Mr. Sandeep Bandawat, learned counsel for the Revenue. In spite of notice none has appeared for the respondent-assessee. As regards the first question that is with regard to subsidy it has been decided against the Revenue and in favour of the assessee by a Division Bench of this court in CIT v. Ambic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... educted from the actual cost under section 43(1) of the Income-tax Act for the purpose of calculation of depreciation, etc. Thus the first question has been answered by the apex court in favour of the assessee and against the Department. As regards the second question a Division Bench of this court in CIT v. Sun Stone Engineering Industries Pvt. Ltd. [1996] 220 ITR 182, has held that the gross total income of the assessee has to be worked out after deducting unabsorbed loss and unabsorbed depreciation and the income eligible for deduction under section 80HH will be the net income as computed in accordance with the provisions of the Act and not the gross income. Thus the second question decided and answered in favour of the Department and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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