- (1.) THE point involved in the present case is whether ss. 80HH and 80 -I of the IT 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 under s. 80 -I can be taken on the reduced balance after taking into account the benefit taken under s. 80HH.
(2.) THE Madhya Pradesh High Court in J.P. Tobacco Products (P) Ltd. vs. CIT (1997) 140 CTR (MP) 329 : (1998) 229 ITR 123 (MP) took the view that both the sections are independent and, therefore, the deductions could be claimed both under ss. 80HH and 80 -I on the gross total income. Against this judgment a special leave petition was filed in this Court Tobacco Products (P) Ltd. (supra) was followed by the same High Court in the case of CIT vs. Alpine Solvex (P) Ltd. in IT 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. See CIT vs. Nima Specific Family Trust (2001) 165 CTR (Bom) 518 : (2001) 248 ITR 29 (Bom); CIT vs. Chokshi Contacts (P) Ltd. (2001) 166 CTR (Raj) 383 : (2001) 251 ITR 587 (Raj); CIT vs. Amod Stamping (2005) 194 CTR (Guj) 158 : (2005) 274 ITR 176 (Guj); CIT vs. Mittal Appliances & Ors. (2004) 189 CTR (MP) 136 : (2004) 270 ITR 65 (MP); CIT vs. Rochiram & Sons (2004) 191 CTR (Raj) 472 : (2004) 271 ITR 444 (Raj); CIT vs. Prakash Chandra Basant Kumar (2005) 276 ITR 664 (MP); CIT vs. S.B. Oil Industries (P) Ltd. (2006) 203 CTR (P&H) 218 : (2005) 274 ITR 495 (P&H); CIT vs. SKG Engineering (P) Ltd. (2005) 197 CTR (Del) 81 : (2005) 119 DLT 673 (Del) and CIT vs. Lucky Laboratories Ltd. (2006) 200 CTR (All) 305.
(3.) 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 present case involving the same point. Accordingly, the civil appeal is dismissed. No costs.;