IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. I.T.A. No. 566 of 2006 DATE OF DECISION : 24.01.2008 Commissioner of Income Tax-III, Ludhiana .... APPELLANT Versus M/s Oswal Woollen Mills Ltd., Ludhiana ..... RESPONDENT CORAM :- HON'BLE MR. JUSTICE SATISH KUMAR MITTAL HON'BLE MR. JUSTICE RAKESH KUMAR GARG Present: Mr. Sanjiv Bansal, Advocate, for the appellant-revenue. Mr. Akshay Bhan, Advocate, for the respondent-assessee. * * * SATISH KUMAR MITTAL, J. ( Oral ) The Department has filed this appeal against the order dated 26.5.2006 passed by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh, in ITA No. 594/Chandigarh/2005 (the assessment year 2001-2002), raising the following two substantial questions of law : “1. Whether on the facts and circumstances of the case, the Hon'ble ITAT was right in law in directing not to reduce 10% of the interest income from the profit of business? 2. Whether on the facts and circumstances of the case, the Hon'ble ITAT was right in law in holding that Central Sales ITA No. 566 of 2006 -2- Tax, and Sales Tax be excluded from the total turnover of the assessee while computing deduction u/s 80 HHC?” Earlier, vide order dated April 3, 2007, at the time of motion hearing, it was not disputed that the question No.2 is covered against the revenue by a judgment of this Court rendered in I.T.A. No. 293 of 2005 “Commissioner of Income tax-I, Ludhiana v. M/s Vardhaman Polytex Limited, Ludhiana” decided on 22.5.2006. However, notice of motion was issued with regard to question No.1. Today, counsel for the appellant very fairly states that even the question No.1 is also covered against the Revenue by decision of the Supreme Court in Civil Appeal No. 5315 of 2007, Hero Exports, G.T. Road, Ludhiana v. Commissioner of Income Tax, (Central), Ludhiana, decided on 20.11.2007, where the same question has been decided in favour of the assessee. In view of the said decision of the Supreme Court, this appeal is hereby dismissed. ( SATISH KUMAR MITTAL ) JUDGE January 24, 2008 ( RAKESH KUMAR GARG ) ndj JUDGE