Joint Commissioner of Income Tax vs Madideep Engg. and Pkg. India (P.) Ltd.

The point involved in the present case is whether Sections 80HH and 80-I of the income tax Act, 1961, are independent of each other and therefore a new industrial unit can claim deductions under both the sections on the gross total income independently or that deduction u/s 80-I can be taken on the reduced balance after taking into account the benefit taken u/s 80HH.

The Madhya Pradesh High Court in J.P. Tobacco Products Pvt. Ltd. Vs. Commissioner of Income Tax, took the view that both the sections are independent and, therefore, the deductions could be claimed both under Sections 80HH and 80-I on the gross total income. Against this judgment a SLP was filed in this Court which was dismissed on the ground of delay on 21-7-2000 (see [2000] 245 ITR (St.) 71) . The decision in J.P. Tobacco Products (P.) Ltd.'s case (supra) was followed by the same High Court in the case of CIT v. Alpine Solvex (P.) Ltd. [I.T. Appeal No. 92 of 1999, dated 2-5-2000]. SLP against this decision was dismissed by this Court on 12-1-2001 (see [2001] 247 ITR (St.) 36) . This view has been followed repeatedly by different High Courts in a number of cases against which no special leave petitions were filed meaning thereby that the department has accepted the view taken in these judgments. - The Commissioner of Income Tax Vs. NIMA Specific Family Trust, ; Commissioner of Income Tax, Jodhpur Vs. M/s. Chokshi Contacts (P) Ltd. Udaipur, ; Commissioner of Income Tax Vs. Amod Stamping, ; Commissioner of Income Tax Vs. Mittal Appliances and Others, ; Commissioner of Income Tax Vs. Rochi Ram and Sons, ; Commissioner of Income Tax Vs. Prakash Chandra Basant Kumar, ; Commissioner of Income Tax Vs. S.B. Oil Industries Pvt. Ltd., ; The Commissioner of the Income Tax-III Vs. S.K.G. Engineering Pvt. Ltd., and The Commissioner of Income Tax Vs. Lucky Laboratories Ltd., .

Since the special leave petitions filed against the judgment of the Madhya Pradesh High Court have been dismissed and the department has not filed the special leave petitions against the judgments of different High Courts following the view taken by the Madhya Pradesh High Court, we do not find any merit in this appeal. The department having accepted the view taken in those judgments cannot be permitted to take a contrary view in the instant case involving the same point. Accordingly, the civil appeal is dismissed. No costs.