JUDGMENT :

Bhargav D. Karia, J.

1. The Tax Appeal No.65/2009 is arising from the impugned order passed by the Income Tax Appellate Tribunal (“the Tribunal” for short) dated 9th January, 2009 in the ITA No.1369/Ahd/2008 for the assessment year 2005-2006. The Tax Appeal No.1191/2010 is arising from the impugned order passed by the Tribunal dated 27th January, 2009 in the ITA No./1361/Ahd/2009 for the assessment year 2006-2007.

2. As the issues involved in both the captioned tax appeals are interconnected, those were heard analogously and are being disposed of by this common judgment and order.

3. For the sake of convenience, the Tax Appeal No.65/2009 is treated as the lead appeal.

4. We are called upon to consider the following substantial question of law :

“Whether on the facts and in the circumstances of the case, Income Tax Appellate Tribunal was justified in law in holding that the appellant was not entitled to deduction of Rs.191,59,84,008/-under Section 80-IA of the Income Tax Act,1961 as for the purpose of calculation of deduction under Section 80-IA read with Section 80-IA(5) of the Act, provisions of Section 79 of the Act are not applicable?”

5. The appellant Vodafone Essar Gujarat