SARLA FASHION GARMENTS,,NEW DELHI vs. JCIT, RANGE-31,, DELHI

ITA 1799/DEL/2006Status: DisposedITAT Delhi20 May 2026AY 2001-20025 pages
AI SummaryAllowed

What were the facts?

The CIT set aside an order allowing deduction under Section 80IB of the Income Tax Act, arguing it should be computed after deducting the Section 80HHC deduction. The assessee appealed this decision.

What did the Tribunal hold?

The Tribunal held that the CIT's interpretation of the law was incorrect, citing the Supreme Court's decision in Shital Fibers Limited. Therefore, the AO's original order allowing the deduction was not erroneous or prejudicial to the revenue.

What were the issues?

Whether the deduction under Section 80IB should be computed after reducing the gross total income by the deduction allowed under Section 80HHC, and if the CIT's order under Section 263 was justified.

Which sections of the Income-tax Act were involved?

Section 80IB,Section 80HHC,Section 80IA(9),Section 263,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “F” NEW DELHI

Before: SHRI CHALLA NAGENDRA PRASAD & SHRI SANJAY AWASTHI

For Appellant: Shri M.P. Rastogi, Adv & Shri Shivam Malik, Adv
For Respondent: Shri Kailash Dan Ratnoo, CIT DR
Hearing: 11.05.2026

PER SANJAY AWASTHI, ACCOUNTANT MEMBER:

1.

In this case there is an order dated 17.12.2025, passed in MA No.341/Del/2022, through which an earlier appeal of the assessee for AY 2001-02 (being the year under adjudication) was dismissed for non- persuasion with liberty to file for recall as and when the correct address was ascertained. Thereafter, the appeal was recalled through the instant MA and fixed before regular bench.

1 SARLA FASHION GARMENTS

2.

This appeal arises from order u/s 263 of the Income Tax Act, 1961 (hereafter as “the Act”), passed by Ld. CIT(A), Delhi-XI, order dated 14.03.2006. It i

The order continues below.

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