Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2021 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (12) TMI 19 - HC - Income TaxDeduction u/s 80HH and 80I - Tribunal justification in holding that in view of the provisions of Section 80AB the loss sustained by the Generic Division was to be deducted from the profits of Bulk Drugs Division for the purposes of computing deduction - HELD THAT:- If one considers Section 80I of the Act it provides for deduction in respect of profits and gains from Industrial undertaking after a certain date etc. It applies to industrial undertaking or a ship or the business of a hotel or business of repairs to ocean going vessels or other powered craft. Section 80IA of the Act provides for deductions in respect of profits and gains from industrial undertaking or enterprises engaged in infrastructure development etc. Section 80HH of the Act provides for deduction in respect of profits and gains from a newly established industrial undertaking or a hotel business in backward area. If we consider the language applied in these three sections, they are identical except that the industry to which it becomes applicable differs. Therefore, even if the judgment of the Apex Court in Reliance Energy Limited [2021 (4) TMI 1237 - SUPREME COURT] was in regard to Section 80-IA of the Act, in our view it covers even Sections 80I and 80HH of the Act. In Reliance Energy (supra) the Apex Court had categorically stated that Section 80AB of the Act cannot be read to be curtailing the width of Section 80-IA of the Act. Mr. Pinto submitted that this observation of the Apex Court was in the nature of obiter. It is settled law that even if the observation of the Apex Court is in the nature of obiter, the same will be binding on the High Courts. In view of what is said in Reliance Energy Limited (supra) by the Apex Court we will have to answer the question noted above in negative.
|