| Case ID |
ffd6bcac-b868-49e5-9785-33855e02c8b4 |
| Body |
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| Case Number |
CIVIL APPEAL NO. 6758 OF 2001 |
| Decision Date |
May 17, 2007 |
| Hearing Date |
|
| Decision |
The Supreme Court of India accepted the appeal of the revenue and set aside the decision of the Bombay High Court, which had previously ruled in favor of the assessee. The High Court of Bombay had held that section 80HHC is independent of section 80AB, and that unabsorbed business losses of earlier years cannot be set off against profits from exports under section 80HHC. However, the Supreme Court, relying on its earlier decision in IPCA Laboratory Ltd. v. Dy. CIT, found that section 80HHC is not independent of section 80AB and that losses are to be set off against the profits from the export of self-manufactured goods. |
| Summary |
This landmark case before the Supreme Court of India involved the interpretation of sections 80HHC and 80AB of the Income Tax Act, 1961. The case arose when the Commissioner of Income-tax, Pune, challenged the decision of the Bombay High Court, which had ruled that section 80HHC is independent of section 80AB, allowing exporters to claim deductions without setting off unabsorbed business losses. The Supreme Court, with Justices Ashok Bhan and Dalveer Bhandari presiding, overturned the High Court's decision, aligning with the precedent set in IPCA Laboratory Ltd. v. Dy. CIT. The Court clarified that section 80HHC is subject to section 80AB, meaning that both profits and losses must be considered when computing export deductions. This decision has significant implications for exporters seeking tax deductions under the Income Tax Act, emphasizing the need to account for all business losses before claiming export-related benefits. The ruling underscores the Court's commitment to ensuring that tax laws are applied consistently and in accordance with legislative intent. Keywords such as 'Income Tax Act', 'export deductions', 'section 80HHC', and 'Supreme Court ruling' are highly relevant for understanding the case's impact on tax law and exporters. |
| Court |
Supreme Court of India
|
| Entities Involved |
Commissioner of Income-tax, Pune,
Shirke Construction Equipment Ltd.
|
| Judges |
Ashok Bhan,
Dalveer Bhandari
|
| Lawyers |
Dr. A.E. Chilliah,
D.K. Singh,
Arijit Prasad,
Pradeep Shukla,
S. Ganesh,
Sanad Ramakrishan,
Rajeev Mishra
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
2007 SLD 3688,
(2007) 291 ITR 380
|
| Other Citations |
CIT v. Smt. T.C. Usha [2003] 132 Taxman 297 (Ker.),
IPCA Laboratory Ltd. v. Dy. CIT [2004] 135 Taxman 594 (SC),
CIT v. Shirke Construction Equipments Ltd. [2000] 246 ITR 429/ 112 Taxman 311 (Bom.),
ITO v. Induflex Products (P.) Ltd. [2005] 149 Taxman 684 (SC),
P.R. Prabhakar v. CIT [2006] 154 Taxman 503 (SC)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
80HHC,
80AB
|