IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.440 OF 2005 The Commissioner of Income-Tax Lalbaug, Mumbai ..Appellant V/s. M/s. H.S. Engg.Mktg.Services Worli, Mumbai ..Respondent Mr. K.R. Choudhari for Appellant None for Respondent CORAM CORAM CORAM : F.I. REBELLO & : F.I. REBELLO & : F.I. REBELLO & R.S. R.S. R.S. MOHITE, JJ MOHITE, JJ MOHITE, JJ DATED DATED DATED : 7TH JANUARY, 2009 : 7TH JANUARY, 2009 : 7TH JANUARY, 2009. P.C. : 1. The revenue preferred this appeal on the following question. "(a) The substantial question of law arises in the present appeal is regarding the correct interpretation of the Section 80-0 of the Income Tax Act and whether on the facts and in the circumstances of the case and in law, the Hon’ble Tribunal is right in upholding the CIT (A) order and directing the A.O. to allow deduction u/s 80-0 of the Act at Rs.72,22,649/- on the basis of the reworked figures submitted by the assessee as against Rs.61,80,383/- as allowed by the assessing officer. 2. In the appeal preferred by the assessee before CIT (A), it was contended on behalf of the assessee that A.O. was not justified in rejecting the revised figures of expenses and that they had revised the figures so as to work out correct amount of deduction u/s 80-0 following the ratio of ITAT in the case of Tata Tata Tata Unisys (47 TTJ 8 (BOM) ) Unisys (47 TTJ 8 (BOM) ) Unisys (47 TTJ 8 (BOM) ). Submission is that only appellant’s net expenditure should be excluded and not that which was incurred on behalf of others and reimbursed by them. 3. The learned Commissioner in the appeal filed held that from the appellant’s profit and loss account that by excluding reimbursement for use of appellant’s office premises and availing of credit facility, no effort was made to pass on any part of appellant’s actual expenditure to its sister concerns and that appellant has independently incurred expenditure for earning income and such plea regarding exclusion of expenditure on service charges and interest receipts reimbursed to the appellant has considerable force and accordingly allowed the appeal. 4. Being aggrieved by the said finding on behalf of Commissioner, appeal is filed. The learned Tribunal after considering the contentions in paragraph 5 held as under: " The learned DR has not been able to controvert the above factual findings recorded by the learned CIT(A). The assessee incurred expenses totally and a certain percentage thereof was allocated to the sister concern. The amount received from the sister concern and the expenses were both reduced from the business receipts as shown to the AO in the revised profit and loss account. This was over looked by the AO and the learned CIT (A) rightly rectified that lapse by allowing the appeal of the assessee." 4. In our opinion, it is apparent from the finding that the question of law does not arises, consequently the appeal is dismissed. ( R.S. MOHITE,J.) R.S. MOHITE,J.) R.S. MOHITE,J.) ( F.I. REBELLO,J) F.I. REBELLO,J) F.I. REBELLO,J)