Commissioner of Income Tax vs Dupont South Asia Ltd.

This appeal is preferred against the order passed by the Income Tax Appellate Tribunal, Delhi Bench ''D'' in ITA No. 4029/Delhi/2002 relevant for the assessment year 1997-98 and two questions of law have been raised by the revenue.

Insofar as the first question is concerned, on 15-1-2007 we had noted that the question has to be decided against the revenue in view of the decision of the Supreme Court in The Commissioner of Income Tax Vs. Catapharma (India) Pvt. Ltd, which follows its earlier decision in Commissioner of Income Tax, Coimbatore Vs. Lakshmi Machine Works, .

The second question that has been raised by the revenue reads as follows:

Whether the ITAT was correct in law in holding that, the assessee is entitled to deduct direct expenses incurred for earning agency commission and market development fees from the gross income and then reduce the net income from the profit of business while calculating deduction u/s 80HHC read with Explanation (baa) of the Income Tax Act?

We find from the perusal of the order passed by the Tribunal that the matter has been remanded to the assessing officer. In view of this, we do not think that a substantial question of law arises whether the matter should have been remanded or not. However, we make it clear that the assessing officer will deal with the issue before him in accordance with law, particularly in view of the decision of this court in Rishi Dev Batra Vs. Dr. (Mrs.) Anup Suri .

The appeal is disposed of.