LAWS(MAD)-2010-11-195

COMMISSIONER OF INCOME TAX LTU Vs. WHEELS INDIA LIMITED

Decided On November 23, 2010
COMMISSIONER OF INCOME TAX-LTU Appellant
V/S
WHEELS INDIA LIMITED Respondents

JUDGEMENT

(1.) The Revenue has come forward with this appeal. The appellant seeks to raise as many as three substantial questions of law, which are as under:

(2.) As far as the question Nos.1 and 2 are concerned, we do not find any scope to entertain this appeal, inasmuch as we find that the order of the Tribunal in holding that once the CBDT issued a Notification dated 21.9.2004 notifying automobiles including automobile components, as article or thing for the purpose of Clause (1) of Sub Clause (2AB) of Section 35 of the Income Tax Act, 1961, such benefit provided under the said Section should enure to assessee for the whole of the assessment year and cannot be restricted from the date of Notification, is sustainable.

(3.) When the Commissioner of Income Tax in exercise of powers under Section 263 of the Act sought to revise the order of the assessing authority relied upon the Certificate issued by the prescribed authority, namely DSIR, wherein it was mentioned that for the year 2004-05, the R&D expenditure incurred after 21.9.2004 to 31.3.2005 would be eligible for weighted deduction, the Tribunal while setting aside the order of the Commissioner of Income Tax relied upon the decision of the Gujarat High Court reported in 2010 326 ITR 251 (Guj), Commissioner of Income-Tax v. Claris Lifesciences Limited.