of Income Tax, Salem Vs. M/S Sugavaneeshwara Spg. Mills Ltd.  INSC 1735
(16 November 2009)
APPELLATE JURISDICTION CIVIL APPEAL NO.7593 OF 2009 (Arising out of S.L.P. (C)
No.3854 of 2008) Commissioner of Income Tax, Salem ...Appellant(s) Versus M/s.
Sugavaneeshwara Spg. Mills Ltd. ...Respondent(s) O R D E R Heard learned
counsel on both sides.
consent, the matter is taken up for final hearing.
narrow controversy is - whether, on facts and circumstances of this case, the
respondent [assessee herein] was not entitled to deduction in view of the law
laid down in the judgment of the Division Bench of this Court in the case of
Commissioner of Income Tax vs. Sri Mangayarkarasi Mills Private Limited,
reported in  315 I.T.R. 114? According to the learned counsel appearing
on behalf of the assesses the judgment of this Court in the case of Sri
Mangayarkarasi Mills Private Limited [supra] ...2/- - 2 - does not lay down the
law across the board and that the said judgment has to be seen in the facts of
express no opinion on the said submission.
we remit this matter to the High Court for de novo consideration in the light
of the judgment in the case of Sri Mangayarkarasi Mills Private Limited
[supra], which has been delivered only on 21st July, 2009. The High Court would
also consider the tests laid down by this Court in the cases of Commissioner of
Income Tax vs.
Spinning Mills Private Limited reported in  293 I.T.R. 201, and
Commissioner of Income Tax vs. Ramaraju Surgical Cotton Mills, reported in
 294 I.T.R. 328, while disposing of this case on merits. We express no
opinion on merits.
to what is stated herein, the appeal is allowed with no order as to costs.
......................J. [S.H. KAPADIA]
......................J. [DR. B.S. CHAUHAN]
November 16, 2009.