Law:

Section:

[2008] 304 ITR 127 (MAD.) HIGH COURT OF MADRAS Commissioner of Income-tax v. Viswas Footwear Co. Ltd. P. D. DINAKARAN AND P. P. S. JANARTHANA RAJA, JJ. T.C. (A) NO. 242 OF 2004 JULY 3, 2007 Section 80HHC of the Income-tax Act, 1961 - Deduction - Experters Deduction under section 80HHC is to be granted after set off of unabsorbed depreciation, unabsorbed business loss and unabsorbed investment allowance of earlier years. [A.Y. 1996-97]. In view of the decision of the Apex Court in CIT v. Shirke Construction Equipment Ltd. [2007]291 ITR 380, deduction under section 80HHC is to be granted after set off of the unabsorbed depreciation, unabsorbed business loss and unabsorbed investment allowance of the earlier years. Mrs. Pushya Sitaraman for the Appellant. T. N. Seetharaman for the Respondent. JUDGMENT P. D. Dinakaran, J.-The vexed substantial question of law, as raised by the Revenue, arises for consideration is, "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that deduction under section 80HHC shall be granted before set off of the unabsorbed depreciation, unabsorbed business loss and unabsorbed investment allowance of the earlier years before grant of depreciation?" under the following facts and circumstances of the case. The relevant assessment year is 1996-97. The assessee is an exporter of leather footwear. Originally, a "nil" return of income was filed by the assessee and the assessment was completed under section 143(3) of the Income-tax Act, 1961 (in short "the Act") on a total income of Rs. 3,18,715, which was reduced to ''nil" after giving set off of the carried forward loss for the assessment year 1993-94. Later, finding that the assessee has claimed excess deduction resulting in escapement of income, assessment was reopened by issuing notice under section 148 of the Act. In response to this, a return of income was filed on June 12, 2001, and the Assessing Officer, by his order dated March 14, 2002, held that if the assessee has suffered loss under any other business or has carried forward the business loss, unabsorbed depreciation, etc., deduction under section 80HHC, though worked out on profit…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492