Shiv ita569.12 IN HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.569 OF 2012 Commissioner of Income Tax-5, Appellant. Vs. IMA PG India Pvt. Ltd. (Formerly known as Precision Gears Ltd.) Respondent. WITH INCOME TAX APPEAL NO.796 OF 2012 Commissioner of Income Tax-5, Appellant. Vs. IMA PG India Pvt. Ltd. (Formerly known as Precision Gears Ltd.) Respondent. WITH INCOME TAX APPEAL NO.957 OF 2012 Commissioner of Income Tax-5, .. Appellant. Vs. IMA PG India Pvt. Ltd. (Formerly known as Precision Gears Ltd.) .. Respondent. Mr. Arvind Pinto for Appellants. Mr. Nishit Gandhi i/b Mr.Vipul Joshi for Respondents. CORAM : S.C. DHARMADHIKARI AND A.K. MENON, JJ. DATED : 19TH SEPTEMBER, 2014. 1/4 ::: Uploaded on - 24/09/2014 ::: Downloaded on - 28/01/2019 15:45:38 ::: ita569.12 P.C. : 1. We have heard Mr.Pinto, appearing on behalf of Revenue in support of Appeals and Mr.Gandhi, appearing on behalf of Respondent-Assessee. 2. Appeals impugn common order of tribunal passed on 30th September, 2011. By this common order three appeals of assessee pertaining to assessment years 2001-02, 2002-03 and 2004-05 and five appeals of revenue pertaining to same assessment years have been disposed of. 3. Mr.Pinto submits that questions of law are at Page 4 and 5 of paperbook and they squarely arise for determination and consideration in these appeals. explanation (baa) which is explanation for purposes of entire section 80HHC envisages that profits of business stand reduced by 90% of any sum and which is stipulated in clause (1) of said explanation. In this case we are concerned with this clause and interpretation placed by tribunal on this clause is vitiated by error of law apparent on face of record. Therefore, this Court should proceed to admit these appeals on above questions of law. 2/4 ::: Uploaded on - 24/09/2014 ::: Downloaded on - 28/01/2019 15:45:38 ::: ita569.12 4. Mr.Gandhi appearing on behalf of Respondents submits that none of these questions can be termed as substantial questions of law. There is pure finding of fact rendered by tribunal at internal Page 21 paragraph 33.3 of order passed in these appeals. tribunal has held that none of these amounts can be termed as receipts by way of rent, interest or commission, or any of receipt of similar nature. These are clear expenses and which have been incurred when such finding of fact is rendered, then tribunal was in no error in reversing contrary findings even if they are concurrent. explanation itself was not attracted. 5. We have with assistance of both counsel perused relevant part of tribunal's order. We find from discussion in tribunal's order and particularly paragraphs 33.2, 33.3 and preceding paragraphs that tribunal has correctly appreciated nature of amounts. They were sundry credit balances returned back. components of expenses which have been incurred are detailed in paragraph 33.3. tribunal has in consonance with factual materials held that each of these amounts and which have been expended do not constitute receipts and are items of expenses, then, such findings of fact cannot be termed as perverse. tribunal rightly arrived at conclusion that this explanation was totally misread and misapplied 3/4 ::: Uploaded on - 24/09/2014 ::: Downloaded on - 28/01/2019 15:45:38 ::: ita569.12 by Assessing Officer and Commissioner in their orders. findings of fact, therefore, being consistent with material placed on record is not vitiated by any error of law. We do not find that any wider questions or larger controversy needs to be considered. 6. appeals are devoid of any merits and therefore they are dismissed. No order as to costs. (A.K. MENON,J.) (S.C. DHARMADHIKARI,J.) 4/4 ::: Uploaded on - 24/09/2014 ::: Downloaded on - 28/01/2019 15:45:38 ::: Commissioner of Income-tax-5 v. IMA PG India Pvt. Ltd. (Formerly known as Precision Gears Ltd.)