IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. I.T.A. No.151 of 1999 Date of decision: 9.11.2010 Commissioner of Income Tax. -----Appellant. Vs. M/s Nahar Spinning Mills Ltd. -----Respondent CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE AJAY KUMAR MITTAL Present:- Mr. Rajesh Katoch, Standing Counsel for the appellant. Mr. Sanjay Bansal, Sr. Advocate with Ms. Shaweta Malhotra, Advocate for the respondent. --- ADARSH KUMAR GOEL, J. This appeal has been preferred by the revenue under Section 260-A of the Income Tax Act, 1961 (for short, “the Act”) against the order dated 5.5.1999 of the Income Tax Appellate Tribunal, Chandigarh in I.T.A. No.1663/Chandi/1991 for the assessment year 1987-88 proposing to raise following substantial question of law:- “Whether on the facts and in the circumstances of the case, the Ld. ITAT was right in law in upholding Orders of the Ld. CIT(A) that Deduction u/s 80-I is admissible even on the Export Incentive and Cash Compensatory Assistance on Export even though the I.T.A. No.151 of 1999 receipt of which is not attributable to conduct of any Manufacturing Activities by the Respondent.” Learned counsel for the assessee does not dispute that the matter is covered in favour of the revenue by judgment of the Hon’ble Supreme Court in CIT v. Sterling Foods (1999) 237 ITR 579. Accordingly, the substantial question of law is answered in favour of the revenue and the appeal is allowed. (ADARSH KUMAR GOEL) JUDGE November 09, 2010 ( AJAY KUMAR MITTAL ) ashwani JUDGE 2