Commissioner of Income Tax vs Punjab Tractors Ltd.

This appeal has been preferred u/s 260A of Income Tax Act,1961 proposing the following substantial question of law arising out of the order dated 2-6-2003 of the Income Tax Appellate Tribunal, Chandigarh Bench ''A'', Chandigarh passed in ITA No. 9/Chd./2002 in respect of the assessment year 1998-99 :

Whether, on the facts and in the circumstances of the case, the ITAT was Bright in law in holding that for the purpose of calculation of deduction u/s 80HHC of the Income Tax Act, 1961, sales tax, excise duty etc., should not be included in the ("total turnover") in view of Explanation (ba) below Sub-section (4B) of Section 80HHC of the Income Tax Act, 1961?

Learned counsel for the revenue points out that the issue has been gone into by this Court in CIT v. Vardhman Polytex Ltd. (2006) 154 Tax 252 and the question has been answered against the revenue and in favour of the assessee.

In view of the judgment of this Court referred to above, the question proposed cannot be held to be a substantial question of law.

The appeal is dismissed.