IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR THURSDAY, THE 7TH FEBRUARY 2008 / 18TH MAGHA 1929 ITA.No. 58 of 2002() -------------------- AGAINST THE ORDER DATED 24/08/2001 IN ITA.233/1996 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT : ----------------- THE COMMISSIONER OF INCOMETAX, THIRUVANANTHAPURAM. BY ADV. SRI.P.K.R.MENON(SR.),SC FOR IT SRI.GEORGE K. GEORGE, SC FOR IT RESPONDENT/ RESPONDENTS: ------------- M/S.BABY MARINE PRODUCTS, KALLUVILA, THANGASSERY, KOLLAM. BY ADV. SRI.C.KOCHUNNY NAIR SRI.DALE P.KURIEN THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 07/02/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & T.R.RAMACHANDRAN NAIR, JJ. ------------------------- I.T.A. No. 58 of 2002 --------------------------------- Dated, this the 7th day of February, 2008 J U D G M E N T C.N.Ramachandran Nair, J. Question Nos.1 and 2 raised in the appeal filed by the revenue stand decided in favour of the assessee vide decision of the Supreme Court in their own case, Commissioner of Income Tax Vs. Baby Marine Exporters, reported in 290 ITR 323. The department appeal regarding this issue stands dismissed. 2. In so far as, question Nos. 3 & 4 are concerned, we find the Tribunal has followed their decision in A.M.Moosa's case to hold that negative figures should be ignored for the computation of deduction under Section 80HHC. However, learned counsel for the revenue has relied on the decision of the Supreme Court in A.M.Moosa Vs. Commissioner of Income Tax, reported in 294 ITR 1, wherein the High Court judgment reversing the Tribunal’s order, is upheld by the Supreme Court. We, therefore, set aside the order of the Tribunal on this issue and remand the matter back to the Assessing Officer for reconsideration after hearing the ITA No.58/2002 -2- parties, based on the decision of the Supreme Court above referred. This I.T.Appeal is disposed of as above. (C.N.RAMACHANDRAN NAIR, JUDGE) (T.R.RAMACHANDRAN NAIR, JUDGE) jg