R.K. Agrawal, J. - (1.) The present appeal has been preferred against the impugned final judgment and order dated 18.12.2012 passed by the High Court of Gujarat in Tax Appeal No. 235 of 2012 whereby the Division Bench of the High Court dismissed the appeal filed by the Revenuethe appellant herein against the judgment and order dated 21.10.2011 passed by the Income Tax Appellate Tribunal (in short 'The Tribunal") in ITA No.1039/Ahd./2007 and ITA No. 240/Ahd./2008.
(2.) Brief facts: a) The Respondent M/s. Shree Rama Multi Tech Ltd. is engaged in the manufacture of multilayer tubes and other specialty packaging and plastic products. The dispute in the present case relates to Assessment Years 19992000, 20002001 and 20012002. The Respondent filed its return of income for the Assessment Year 20002001 declaring a total income of Rs 20,00,59,650/. However, the Assessing Officer, vide order dated 31.03.2003, passed an order of assessment assessing the taxable income at Rs 27,61,14,254/. But the same came to be modified in light of the decision given by the Tribunal dated 16.12.2004 in ITA No. 1481/Ahd./2004 and ITA No. 1685/Ahd./2004 wherein the Tribunal has directed for readjudication on certain matters including that of setoff as claimed under the head of interest on share application money. In pursuance of the Order passed by the Tribunal dated 16.12.2004, the total income was redetermined at Rs. 17,30,88,691/ by the Assessing Officer vide order dated 29.12.2004 but was restricted to 20,00,59,650/ in view of proviso to Section 240(b) of Income Tax Act, 1961 (in short 'the IT Act'). (b) Aggrieved by the aforesaid order, the Respondent went in appeal before learned Commissioner of Income Tax (Appeals). Learned CIT (Appeals), vide order dated 09.01.2006, allowed the appeal filed by the Respondent while directing the Assessing Officer to grant relief by recomputing the income and modifying the tax calculation without applying the proviso to Section 240 of the IT Act. In the meanwhile, reassessment proceedings were initiated in accordance with Section 147 of the IT Act on the ground that the Assessing Officer has reason to believe that income for the said Assessment Year has escaped assessment. Finally, on 21.03.2006, the Assessing Officer determined the total income at Rs 20,66,29,165/. (c) Being aggrieved by the order dated 21.03.2006 in not allowing set off of the interest income against the public issue expenses in accordance with the directions of the Tribunal while rejecting the claim for the deduction of interest income of Rs. 1,71,30,212/ from public issue expenses, the Respondent went in appeal before the CIT (Appeals) by filing CIT (A) ACITC 8/74/20062007. Learned CIT (Appeals), vide order dated 05.01.2007, partly allowed the appeal filed by the Respondent while affirming the findings of the Assessing Officer in not allowing set off of interest income from share application money. (d) Being aggrieved by the order passed by learned CIT (Appeals), both the parties filed crossappeals before the Tribunal. The Tribunal, by a common judgment dated 21.10.2011, allowed the claim of the Respondent with respect to the deduction on account of interest income of Rs 1,71,30,212 and remanded the matter back to the Assessing Officer on other issues. (e) Being aggrieved, the Revenue filed an appeal before the High Court being ITA No. 235 of 2012. A Division Bench of the High Court, vide order dated 18.12.2012, dismissed the appeal on the point of taxability of the interest income. (f) Aggrieved by the order dated 18.12.2012, the appellant has filed this appeal before this Court.
(3.) Heard learned counsel for the parties and perused the factual matrix of the case. Point(s) for consideration:;