TMI Blog2015 (11) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... onstitute an appropriate Bench to consider the correctness of the judgment in Motilal Pesticides (supra). - C.A. Nos. 1581 -1582 of 2005 - - - Dated:- 5-11-2014 - RANJAN GOGOI ROHINTON FALI NARIMAN, JJ. JUDGEMENT Rohinton Fali Nariman, J. - ( 1. ) WE are concerned in these cases with Assessment Year 1979 -1980 and Assessment Year 1980 -1981. The High Court of Rajasthan by the impugned judgment dated 17th May, 2004 construed Section 80 -HH of the Income Tax Act, 1961 following a judgment of this Court in Motilal Pesticides (I) Pvt. Ltd. v. Commissioner of Income Tax, Delhi -II : (2000) 9 SCC 63. The High Court noticed an argument made before it to the following effect: It is most humbly submitted that the concept ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profits and gains derived from , Section 80 -M uses the expression any income . Section 80 -M was held, in the Cloth Traders (P) Ltd. v. CIT : (1979) 3 SCC 538, to mean that for the purpose of that Section, deduction is to be allowed on the gross total income and not on net income. This was over -ruled in Distributors (Baroda) Pvt. Ltd. v. Union of India : (1986) 1 SCC 43. ( 3. ) BHAGWATI , J. who was party to the earlier decision in the Cloth Traders' case delivered a judgment in the Distributors (Baroda) case holding that the Cloth traders' case was obviously incorrectly decided because the words any income cannot possibly refer to gross total income but referred only to net income . Further, Distributors (Baroda) case foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ( 4. ) IT will be noticed that in marked contrast to the Section under consideration in this appeal i.e. 80 -HH, Section 80 -E uses the expression total income [as computed in accordance with the provisions of this Act] and goes on to speak of any profits and gains, so computed, for the purpose of deduction Under Section 80 -E. It will be seen in the present case the said words are conspicuous by their absence in Section 80 -HH even though the expression profits and gains is the same expression used in Section 80 -E. The finding in paragraph 4 in Motilal Pesticides (supra) that the language of Section 80 -HH and Section 80 -M is the same is, with respect, prima facie, incorrect. Conceptually, any income and profits and gains a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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