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The tribunal was right in confirming the order of the CIT(A) and granting relief under Section 80IB of the Income Tax Act: Calcutta High Court

The Judgment in the case of Principal Commissioner Of Income vs M/S. Shalimar Pellet Feeds Ltd (IA NO.GA/2/2018) was served by THE HON’BLE JUSTICE T.S. SIVAGNANAM AND THE HON’BLE JUSTICE HIRANMAY BHATTACHARYYA.

FACTS OF THE CASE :
This appeal filed by the revenue under Section 260A of the Income Tax Act, 1961 (the ‘Act’ in brevity) is directed against the order dated 2nd June, 2017 passed by the Income Tax Appellate Tribunal, Kolkata “C” Bench (the ‘Tribunal’ in short) in IT(SS)A Nos.13 to 18/Kol/2016 for the assessment years 2008-09 to 2013-14.

The appeal has been filed by the revenue raising the following substantial questions of law for consideration:

“(1) Whether in the facts and circumstances of the case, the learned Tribunal was justified in law and on facts in upholding the assessee’s appeal in which the assessee had challenged the assumption of jurisdiction by the assessing officer to make the assessment under Section 153A/143(3) of the Income Tax Act, 1961 on the ground that no incriminating documents was found and/or seized during search? (2) Whether in the facts and circumstances of the case, the learned Tribunal was justified in allowing deduction under Section 80IB(5) of the Income Tax Act, 1961 to the assessee by wrongly holding that the process of making poultry feeds as manufacture or production of article or thing for the purpose of Section 80IB(5) of the Income Tax Act, 1961? (3) Whether in the facts and circumstances of the case, the learned Tribunal was justified in holding that disallowance under Section 14A of the Income Tax Act, 1961 read with Rule 8D of the Income Tax Rules, 1962 will not apply where no exempt income is received or receivable during the relevant previous year or by ignoring the provisions of Rule 8D that provides for computation of expenditure in respect of not only those investments, income from which does not form part of total income, but also those investments, income from which shall not form part of total income?

JUDGEMENT :
The Hon’ble bench after analyzing the facts and contentions of the Parties held that the appeal (ITAT 200/2018) filed by the revenue stands dismissed and the substantial questions of law nos.2 and 3 are decided against the revenue and substantial question of law no.1 is left open.
With the dismissal of this appeal, the stay application (IA No.GA/2/2018 (Old No.GA/1616/2018) stands closed.

JUDGEMENT REVIEWED BY AKANKSHA 

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