TMI Blog2007 (5) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... e (for short "the Revenue") has filed the present appeal against the final judgment and order dated July 24, 2000, passed by the High Court of Bombay in I. T. A. No. 458/AN/1998, by which the High Court has affirmed the decision of the Tribunal and dismissed the appeal filed by the Revenue. The issue involved in this appeal relates to the provisions of the Income-tax Act, 1961 (for short "the Act"). The High Court framed the following two questions of law for its determination : 1. Whether section 80AB can be applied to section 80HHC of the Act? 2. Whether, in determination of business profit under section 80HHC, the unabsorbed business losses of the earlier years under section 72 of the Act should be set off? The High Court has d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned from export of self-manufactured goods. It has further been held in this case that section 80HHC would be governed by section 80AB and the decisions of the Bombay High Court and the Kerala High Court taking the contrary view do not lay down the correct law to that extent. The judgment impugned in the present case, which, as indicated herein, was relied upon has been noticed by this court in paragraph 7 of the judgment in IPCA Laboratory Ltd. case, thus: "Mr. Dastur also relied upon the case of CIT v. Shirke Construction Equipments Ltd. [2000] 246 ITR 429 (Bom). In this case the Bombay High Court has held that section 80HHC is a complete code in itself and that it is not controlled by section 80AB. It was held that profits had to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hapter'. This would include section 80HHC. Section 80AB further provides that 'notwithstanding anything contained in that section'. Thus section 80AB has been given an overriding effect over all other sections in Chapter VI-A. Section 80HHC does not provide that its provisions are to prevail over section 80AB or over any other provision of the Act. Section 80HHC would thus be governed by section 80AB. The decisions of the Bombay High Court and the Kerala High Court to the contrary cannot be said to be the correct law. Section 80AB makes it clear that the computation of income has to be in accordance with the provisions of the Act. If the income has to be computed in accordance with the provisions of the Act, then not only profits but also l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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