TMI Blog2002 (11) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 80HHC in the assessment year 1989-90 carried forward from the assessment years 1987-88 and 1988-89 by virtue of the restrictions imposed by section 80VVA of the Income-tax Act?" - We, hold that the Appellate Tribunal has come to the correct conclusion in holding that the assessee was entitled to claim the relief even though section 80VVA of the Act was omitted from the statute book by the Finance Act, 1987, with effect from April 1, 1988, and there are no grounds to interfere. Accordingly, the question of law referred to us is answered in the affirmative, against the Revenue - - - - - Dated:- 25-11-2002 - Judge(s) : N. V. BALASUBRAMANIAN., K. RAVIRAJA PANDIAN. JUDGMENT The judgment of the court was delivered by N.V. BALASUBRA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under sub-section (4) of section 80VVA of the Act and, hence, the assessee was entitled to carry forward the relief which was restricted under section 80VVA(1) of the Act. The Appellate Tribunal, relying upon the decision of this court in J.K.K. Angappan v. ITO [1974] 94 ITR 397, held that by virtue of section 6 of the General Clauses Act the assessee was entitled to carry forward the relief though section 80VVA of the Act was omitted from the statute book. The Appellate Tribunal allowed the appeal by the assessee. On the basis of the directions of this court, the Appellate Tribunal has stated a case and referred the following question of law: "Whether, on the facts and circumstances of the case, the Appellate Tribunal was right in law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in respect of any provision specified in section 80VVA(2) of the Act, by virtue of the restrictions, the amount remaining unallowed shall be added to the amount to be allowed in the next financial year and shall be deemed to be a part of the deduction admissible to the assessee under the said provision for that year. Section 80VVA(4) further provides that the deduction not allowed shall be added to the deduction for the succeeding assessment years. Section 80VVA was deleted by the Finance Act, 1987, with effect from April 1, 1988, and in its place section 115J of the Act was introduced. There is no dispute that the assessee was not granted the relief or deduction for a sum of Rs. 2,04,475 in respect of the claim under section 80HHC of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y either expressly or by necessary implication by the deletion of section 80VVA of the Act. The Supreme Court has considered a similar question in CIT v. Shah Sadiq and Sons [1987] 166 ITR 102 where the Supreme Court held that the accrued right of the assessee could be taken away expressly or by necessary implication. In that case, the Supreme Court was dealing with a case of carried forward loss and the Supreme Court held that under section 6(c) of the General Clauses Act, the assessee had a vested right to carry forward the loss though the Act was repealed and laid down the principle of law as under: "...the right of the respondent under section 24(2) of the 1922 Act to carry forward and set off speculation losses of the assessment y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as a part of deduction for the next assessment year to be allowed in the computation of the total income for the next following assessment year and the assessee is entitled to carry forward the deduction for the subsequent assessment years, if not allowed, as the deduction disallowed would join the main stream of deduction. We, therefore hold that the Appellate Tribunal has come to the correct conclusion in holding that the assessee was entitled to claim the relief even though section 80VVA of the Act was omitted from the statute book by the Finance Act, 1987, with effect from April 1, 1988, and there are no grounds to interfere. Accordingly, the question of law referred to us is answered in the affirmative, against the Revenue and in f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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