Eagle Forgings vs Commissioner of Income Tax-I

This is an appeal filed by the assessee raising following substantial questions of law, arising out of order passed by the Income Tax Appellate

Tribunal, Amritsar Bench, Amritsar (hereinafter reffered to as ''the Tribunal'') in ITA No. 420 (Asr.)/2001, dated 8-7-2005, for the assessmeat

year 1998-99, for opinion of this Court:

Whether on f acts and circumstances of the case, the Tribunal was right in law in coming to the conclusion that for the purpose of computing the

quantum of deduction u/s 80HHC of the Act, the term ''profit'' as contemplated in Sub-section (3) of Section 80HHC would encompass within its

ambit only ''positive figure'' and therein where the same is a ''negative figure'' the same ought not to be increased by the amount specified in the

''proviso'' to the said sub-section, and therein disentitling the assessee from his very entitlement towards the claim of deduction u/s 80HHC of the

Income Tax Act, 1961 ?

Whether in the facts and circumstances of the case, the Tribunal is right in law in coming to the conclusion that the term ''Profit'' represents only

''plus income'', and therein excludes from the scope of its ambit ''minus income?

We have perused the order passed by the Tribunal. While accepting theplea raised by the revenue, the Tribunal relied upon a judgment of

Hon''ble the Supreme court of India in IPCA Laboratory Ltd. Vs. Deputy Commissioner of Income Tax, Mumbai, and held as under:

The word ''profit'' in Sub-sections (1) and (3)(a) and (b) of Section 80HHC means a positive profit. In other words, if there is a loss then no

deduction would be available under Sub-section (1) or Sub-section (3)(a) or Sub-section (3)(b). In arriving at the figure of positive profit, both the

prof its and the losses will have to be considered. If the net figure is a positive profit then the assessee will be entitled to deduction; if the net figure

is a loss then the assessee will not be entitled to deduction.

As the issue raised by the appellant is squarely covered by the judgment of Hon''ble the Supreme court in IPCA Laboratory Ltd.''s case (supra),

we do not find any substantial question of law arises in the appeal.

Accordingly, the appeal is dismissed.