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Commissioner of Income-tax, Patiala v. M/s Punjab Tractors Ltd., Mohali - ITA-161-2006  RD-P&H 5343 (8 August 2006)
Income Tax Appeal No.161 of 2006
Date of Decision 18.8.2006.
Commissioner of Income-tax, Patiala
Mr. Yogesh Putney, Advocate
M/s Punjab Tractors Ltd., Mohali
Mr.P.C.Jain, Advocate with
Mr. Prakul Khurana, Advocate
Hon'ble Mr. Justice Jasbir Singh
Hon'ble Mr. Justice Rajesh Bindal
RAJESH BINDAL J.
This appeal by the Revenue under Section 260-A of the Income-tax Act, 1961 (for short,`the Act') is directed against order dated 24.8.2005, passed by the Income-tax Appellate Tribunal, Chandigarh Bench `B' (for short, `the Tribunal') in I.T.A. No.223/Chandi/2005, for the assessment year 2001-02, raising the following substantial question of law: "Whether on the facts and in the circumstances of the case, the ITAT was right in law in holding that for the purpose of calculation of deduction u/s 80 HHC of the Income-tax Act, 1961 excise duty and sales tax should not be included in the `total turnover'?" For the assessment year 2001-2002 assessee filed return declaring its income at Rs.1,39,87,89,240/- on 31.10.2001 which was processed under Section 143(1) of the Act. Thereafter the assessee filed revised return on 25.3.2003 declaring its income at Rs.1,40,09,63,750/- which was again processed under Section 143(1) of the Act on 28.3.2003.
The case of the assessee was taken for scrutiny by issuing notice under Section 143(2) of the Act on 6.5.2002. During the course of assessment, the Assessing Officer ordered that sales tax and excise duty be included in the total turnover for the purpose of calculation of deduction under Section 80HHC of the Act. Accordingly, the relief under Section 80HHC of the Act was re-calculated. The assessee succeeded in appeal before the Commissioner of Income Tax (Appeal) (for short `the CIT(A)').
Aggrieved against the order of CIT(A) the revenue went in appeal before the Tribunal which was dismissed vide order dated Aug 24, 2005.
In I.T.A No.293 of 2005 Commissioner of Income tax-I, Ludhiana v. M/s Vardhman Polytex Ltd., Ludhiana, decided on 22.5.2006, this court has already decided an identical issue against the Revenue and in favour of the assessee holding that sales tax and excise duty will not form part of the turnover while computing the deductions under Section 80HHC of the Act.
As the issue raised in the appeal is covered by the judgment of this court in Vardhman Ploytex's case (Supra), we do not find any substantial question of law arises in the present appeal, accordingly, the appeal is dismissed.
18.8.2006 (Jasbir Singh)
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