Commissioner of Income Tax vs Avon Cycles Ltd.

After hearing counsel for the parties and having perused the order of the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh, we are of the opinion that as interpretation regarding admissible deductions u/s 80HHC is involved, referable questions of law do arise from the order of the Tribunal.

We, accordingly, direct the Tribunal to refer the following two questions of law along with the statement of the case to this court for its opinion :

"1, Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that except ''sale of scrap'', the other items like miscellaneous income, rent received, grant, steel and rubber subsidy, etc., were not to form part of turnover for the purposes of deduction u/s 80HHC ?

Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the term ''profit'' will not include ''loss'' and hence the negative figure, if any, has to be ignored for the purposes of deduction u/s 80HHC ?"

No costs.