IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN FRIDAY, THE 13TH FEBRUARY 2009 / 24TH MAGHA 1930 ITA.No. 158 of 2008() --------------------- AGAINST THE ORDER DATED 02/05/2003 IN ITA.352/COCH/1999 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT: -------------------- COMMISSIONER OF INCOME-TAX, THIRUVANANTHAPURAM. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT/RESPONDENT: --------------- M/S.KERALA NUT FOOD COMPANY PARAMESWAR NAGAR, KOLLAM. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 13/02/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & K.SURENDRA MOHAN, JJ. .................................................................... I.T. Appeal No.158 of 2008 & C.M. Appln. No.980 of 2008 .................................................................... Dated this the 13th day of February, 2009. JUDGMENT Ramachandran Nair, J. Though notice is served, there is no appearance for the respondent. Since the delay in filing the appeal is not substantial, we have considered the merits of the case as well. The two questions raised in the appeal filed by the Revenue are the following: 1. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in directing to recompute the deduction under Section 80HHC by ignoring the loss derived from the export of trading goods? 2. Whether, on the facts and in the circumstances of the case and in the light of the judgment of the Honourable Supreme Court of India in IPCA Laboratory Ltd. Vs. Dy. CIT (266 ITR 521) is not the order of the Tribunal wrong and against law? Both the questions pertaining to the same issue are covered by decisions of the Supreme Court in IPCA LABORATORY LTD. V. DEPUTY COMMISSIONER OF INCOME TAX (2004) 266 ITR 521 and in A.M.MOOSA V. COMMISSIONER OF INCOME TAX (2007) 2 294 ITR 1. We, therefore, condone the delay in filing the appeal and allow the appeal by setting aside the order of the Tribunal and remanding the matter back to the Assessing Officer for recomputation of eligible relief under Section 80HHC by reckoning loss as well in terms of decisions of the Supreme Court abovereferred. C.N.RAMACHANDRAN NAIR Judge K.SURENDRA MOHAN Judge pms