Fenner (India) Ltd. vs Commissioner of Income Tax

V.S. Sirpurkar, J.

The questions which are referred in these two tax cases are as follows :

T.C. No. 695 of 1996 :

Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the interest paid u/s 220(2) of the Act is not an

allowable deduction against the profit of the company ?

Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the proportionate amount of cash compensatory

support on exports attributable to the new industrial undertaking did not qualify for the relief u/s 80HH ?

Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the gratuity paid to directors is to be included in

remuneration for the purpose of computing expenditure u/s 40C ?

T. C. No. 696 of 1996 :

Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the interest income and sale proceeds of

processed waste attributable to the new industrial undertaking did not qualify for the relief u/s 80HH ?

Mr. Janarthana Raja, the learned counsel appearing for the assessee, states that the first question is covered against the assessee by the

judgment in assessee''s own case in Fenner (India) Ltd. Vs. Commissioner of Income Tax, . He submits that the second question is also covered

against the assessee vide judgment in the assessee''s own case in Penner (India) Ltd. Vs. Commissioner of Income Tax, . According to the learned

counsel, even the fourth question is covered against the assessee, again by judgment in assessee.''s own case in Fenner (India) Ltd. Vs.

Commissioner of Income Tax (No. 2), . According to the learned counsel, all these three questions can be answered against the assessee on the

basis of these decisions. The department does not controvert the same. Hence, these questions are answered against the assessee.

However, insofar as the third question is concerned, according to Mr, Janarthana Raja, the matter is covered in favour of the assessee, again by

the judgment in assessee''s own case in Commissioner of Income Tax Vs. Fenner (India) Ltd., . This is also not controverted by the learned senior

standing counsel for the department. In that view, that question will be answered in favour of the assessee and against the revenue.

The tax cases are, accordingly, disposed of. No costs.