TMI Blog2009 (3) TMI 511X X X X Extracts X X X X X X X X Extracts X X X X ..... he benefits granted under section 80-IB. Held that- the doctrine of promissory estoppel could not be made applicable to the nullity legislature exercise inasmuch as the legislature could not be estopped from exercising its power so long as such exercise was in conformity with the provisions of seventh schedule to the constitution and it did not transgress the fundamental rights guaranteed by Part III of the constitution. By enacting the provisions of section 115JB, the legislature had restricted the benefits of deduction under section 80-IB by making industrial units like those of the assessees liable to tax at the rate of 7.5% of the book profits. Curtailment of benefit earlier granted by the legislative act could not be invalidated on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d deductions. The petitioners further contend that section 115JB of the Act which seeks to impose tax at the rate of 7.5 per cent. of the book profit of an industrial unit like the petitioners which are situated in a notified industrially backward area is illegal and unconstitutional as it seeks to override the benefits granted under section 80-IB. In this regard the petitioner also contends that prior to the introduction of section 115JB of the Act, the provisions of section 115JA were in force under which, particularly clause (v) of Explanation to section 115JA(2), the amount of profit derived by an industrial undertaking located in an industrially backward State and District, as referred to in sub-sections (4) and (5) of section 80-IB, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise is in conformity with the provisions of the Seventh Schedule to the Constitution and the same does not transgress the fundamental rights guaranteed by Part III of the Constitution. A reading of the provisions of sections 80-IB, 115JA and 115JB of the Act make it amply clear that initially the benefit of deduction was contemplated by section 80-IB(4) and (5) and clause (v) to Explanation contained in section 115JA(2). By enacting the provisions of section 115JB, the Legislature had restricted the said benefits by making the industrial units like those of the petitioners liable to tax at the rate of 7.5 per cent. of the book profit. 6. The Legislature cannot be denied the power to curtail benefits earlier granted, as has been done in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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