COMMISSIONER OF INCOME TAX Vs. EUREKA SALES CORPORATION
LAWS(DLH)-2007-1-215
HIGH COURT OF DELHI
Decided on January 11,2007

COMMISSIONER OF INCOME TAX Appellant
VERSUS
Eureka Sales Corporation Respondents

JUDGEMENT

- (1.) 2568/Del/1996 relevant for the asst. yr. 1991 -92.
(2.) It appears that the assessee had claimed the benefit of s. 80HHC of the IT Act, 1961 even though it had suffered a loss in its business activity. The AO was of the view that the benefit of s. 80HHC of the Act was not admissible to the assessee because it had suffered a loss. The assessee preferred an appeal before the CIT(A), who upset the order of the AO and directed him to consider the effect of s. 80HHC insofar as the assessee is concerned even though it had suffered a business loss.
(3.) The AO complied with the appellate order and applied the formula as laid down under s. 80HHC of the Act. Feeling aggrieved, the assessee filed an appeal before the CIT(A) contending that the commission received by the assessee could not be included in the total turnover. This contention was not accepted by the CIT, who took a rather narrow view of the matter and concluded that the AO was only required to give effect to the appellate order and could not look into other issues. The assessee then filed an appeal before the Tribunal and the decision of the Tribunal has given rise to this appeal under s. 260A of the Act.;


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