Commissioner of Income Tax vs Ives Drugs (India) (P.) Ltd.

Having heard learned counsel for the appellant and having perused the record of the case we are of the considered view that the view taken by the Tribunal on the question sought to be raised by the appellant in this appeal is already answered against the revenue in the case of J.P. Tobacco Products Pvt. Ltd. Vs. Commissioner of Income Tax, , which according to the learned counsel appearing for the revenue was eventually upheld even by their Lordships of the Supreme Court.

The short question that fell for consideration before the Assessing Authority was as to how the deduction available to the assessee u/s 80I of the Act should be calculated. With reference to the another provision viz., u/s 80HH. This precise issue was examined by this court in J.P. Tobacco Products supra and it was answered against the revenue, thereby accepting the interpretation placed by the assessee while calculating the deduction available u/s 80I and 80HH of the Act.

In this case the assessing officer while calculating the deduction did not follow the law laid down by this court in J.P. Tobacco Products case and therefore, assessee came before the CIT in appeal. The Commissioner (Appeals) placing reliance upon the law laid down by this court set aside that part of the deduction and remanded the case to the assessing officer by directing the assessing officer to calculate the deduction u/s 80I of the Act from the gross total income before allowing the admissible deduction u/s 80HH of the Act. This finding was sought to be challenged by the revenue before the Tribunal and the same was repelled by passing the impugned order. The Tribunal rightly placing reliance upon the view taken by this court in the case of J.P. Tobacco Products, upheld the direction given by the CIT to the assessing officer.

When the issue is settled by this court and the same having been upheld by the Supreme Court the appeal u/s 260A of the Income Tax Act cannot be said to involve any substantial question of law so as to entertain it.

We, therefore, dismiss the appeal in limine.