The Commissioner of Income Tax vs Aurigene Discovery Technologies Ltd.

N. Kumar, J.—This appeal is preferred by the Revenue raising the following two substantial questions of law:

Whether on the facts and in the circumstances and in law the Tribunal was correct in holding that the expenditure incurred in foreign currency excluded from export turnover has to be excluded from total turnover when there is no provision in Section 10B to exclude from total turnover?

Whether on the facts and in the circumstances and in law the Tribunal was correct in holding that the unabsorbed depreciation and the brought forward loss cannot be set off from business profits before computing deduction u/s. 10B of the Act when Section 10B of the Act provides for deduction of benefit on the profits and gains?

The first substantial question of law is covered by the judgment of this Court in the case of Commissioner of Income Tax Vs. Tata Elxsi Ltd., . Similarly, the second substantial question of law is also covered by the decision of this Court in the case of The Commissioner of Income Tax Ltu. Jss Towers. BSK III Stage Bangalore and The Asst.Commissioner of Income Tax Circle-12(5), C.R. Building, Queens Road, Bangalore and Others Vs. M/s. Yokogawa India Ltd., Plot No. 96, 3rd Cross Electronics City Complex, Hosur Road, Bangalore - 560 100 and Others etc. etc. . Therefore, as the said questions of law are already answered in favour of the assessee and against the Revenue, we do not see any merit in this appeal.

Accordingly, the appeal is dismissed. However, it was submitted by the Revenue that against the aforesaid two judgments of this Court, appeals are filed and are pending before the Apex Court. Hence, in the event of Revenue succeeding before the Apex Court, the Assessing Authority shall pass consequential orders u/s 260(1A) of the Income Tax Act, 1961, as per the orders to be passed by the Apex Court.