MADAN B. LOKUR, J.

( 1 ) FOR the assessment year 1996-97, the Respondent Assessee claimed deduction under Section 80hhc and Section 80-I of the Income Tax Act, 1961 (the act ).

( 2 ) THE Assessing Officer passed an order on 31st March, 1999 in which he held that a deduction is required to be first made under Section 80hhc of the Act and thereafter from the residual gross total income a deduction can be made under section 80-I of the Act.

( 3 ) FEELING aggrieved, the Assessee filed an appeal before the Commissioner of Income Tax (Appeals) CIT (A ).

( 4 ) BY his order dated 28th September, 2000, the CIT (A) relied upon J. P. Tobacco Products Pvt. Ltd. vs. Commissioner of Income-Tax (1998) 229 ITR 123 and allowed the appeal directing the Assessing Officer to allow deduction under Section 80-I of the Act from the gross total income without reducing it by the amount of deduction under Section 80hhc.

( 5 ) THE Revenue then appealed to the Income Tax Appellate Tribunal but by an order dated 10th October, 2003 the Tribunal rejected the appeal following J. P. Tobacco.

( 6 ) THE Revenue preferred the present appeal in which the following substantial question of law was framed on 3rd Septembe

Click Here to Read the rest of this document