TMI Blog2001 (9) TMI 815X X X X Extracts X X X X X X X X Extracts X X X X ..... of unabsorbed business losses and unabsorbed depreciation ignoring the unambiguous provisions of sections 80A(1) and 80B(5) of the Income-tax Act, 1961 and decisions of jurisdictional High Court in the case of CIT v. Banswara Syntex Ltd., 132 CTR 132." 3. The Ld. D.R. contended before us that the issue involved in this appeal is covered against the assessee by the decision of this Bench in the case of Secure Meters Ltd. v. CIT, reported in 24 Tax World 403. He further contended that the view taken by the Bench in the said case also gets support from the decision of Hon ble Rajasthan High Court in the case of CIT v. Vishnu Oil Dal Mills, reported in [1996] 218 ITR 71 and 132 ITR 132. 4. The Ld. counsel for the assessee, on the other h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jurisdictional High Court) in the case of CIT v. Vishnu Oil Dal Mills [1996] ( 218 ITR 71) as discussed in para Nos. 11 and 12 of the Tribunal s order (22 Tax World 403) which are reproduced below :- "The view taken by the Hon ble Andhra Pradesh High Court, in its decision referred to above, cited by the Ld. A.R. of assessee, seems to be not in conformity with the decision of Hon ble Supreme Court in the case of Motilal Pesticides (I.) Pvt. Ltd. v. CIT, reported in 243 ITR 26 and of Hon ble Rajasthan High Court in the case of Vishnu Oil Dal Mills reported in 218 ITR 71. The provision of section 80AB, relevant as it is, may, for convenience sake, be quoted hereunder : Section 80AB - Where any deduction is required to be made or allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come. In the array of provisions in IT Act, 1961, section 80HHC falls under head "C" within Chapter VIA and so the judgment of the Hon ble Apex Court (supra) does apply squarely to section 80HHC as well." "Like-wise, the Hon ble Rajasthan High Court has, in the case of Vishnu Oil Dal Mills [1996] 218 ITR 71 held that for computing special deduction allowable under head "C" of Chapter VIA in respect of any income of the nature specified in that section, notwithstanding anything contained in that section (section 80HHC in the instant case) the amount of income of that nature, as computed in accordance with the provision of this Act, shall alone be deemed to be the amount of income of that nature (export profit in the case in hand) which i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot appear to be any material difference in the languages of the two sections in this regard. In section 80HH the term "GTI" has been used no doubt but the same has been used to express that it included "profits (or industrial undertaking or hotel) and that twenty per cent of these profits was to be allowed as deduction under that section, i.e., under section 80HH. The said user of "GTI" in section 80HH is not material in any way to distinguish section 8HHC from section 80HH because the non user of "GTI" in section 80HHC is for the reason that in section 80HHC deduction is not of any partial percentage or part of "profits" but is of the entire profits. Besides, the use of the word "profit" instead of "income" also does not seem to be of any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it has been held that even though section 80AB contains non-obstante clause the said section 80AB will be subject to section 80HHC to the extent of export profits worked out from the business profits. The Hon ble Mumbai High Court also observed that by excluding the expression "where the gross total income includes any income" in section 80HHC, the Legislature has made a clear departure in respect of deduction under section 80HHC from other sections in Chapter VIA and, therefore, held that section 80AB does not control section 80HHC. Further in view of the artificial formula provided only in section 80HHC by the Legislature and considering the apparent object of giving maximum benefit to the exporters who earn foreign exchange for the coun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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