Commissioner of Income Tax vs Girnar Investment (P) Ltd.

The Income Tax Appellate Tribunal has referred the following two questions for the opinion of this court :

"1. Whether on the facts and in the circumstances of the case, the Tribunal was right in law in directing the Income Tax Officer to accept the loss of Rs. 25,090 as claimed by the assessed?

Whether on the facts and in the circumstances of the case, the Tribunal was right in law in allowing deduction under sections 80K and 80M in view of the provision of section 80A of the Income Tax Act?"

The learned counsel for the revenue rightly submitted that the questions are not properly framed and it should be re-framed. Accordingly, after going through the papers, we reframe the question as under :

"Whether on the facts and circumstances of the case, the Appellate Tribunal was right in law in holding that the deduction under sections 80K and 80M of the Income Tax Act, 1961 should be allowed before set-off of loss of earlier year."

In view of the decision of the Apex Court this issue is no more res integra as the question is covered by the Apex Court decision in Commissioner of Income Tax, Tamil Nadu-V, Madras Vs. Kotagiri Industrial Co-operative Tea Factory Ltd., Kotagiri, Accordingly the answer is given in favor of the revenue and against the assessed.

The Reference stands disposed of.