COMMISSIONER OF INCOME TAX vs. APOLLO CONSTRUCTION CO.P.LTD.

ITR/30/1999HC GujaratGJHC24025188199901 November 2006Author: HONOURABLE MR. JUSTICE D.H.WAGHELA,HONOURABLE MR. JUSTICE R.S.GARG4 pages
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What were the facts?

The Revenue (Commissioner of Income Tax) has referred a question of law to the High Court of Gujarat concerning the assessee, Apollo Construction Co. Pvt. Ltd. The assessment years involved are 1985-86, 1986-87, and 1987-88. The dispute arose because the Assessing Officer denied the assessee simultaneous deduction benefits under Sections 80HH and 80-I of the Income Tax Act, 1961. The Commissioner of Income-tax (Appeals) directed the Assessing Officer to grant these deductions. The Revenue appealed this decision to the Income Tax Appellate Tribunal, which upheld the CIT(A)'s order. Aggrieved, the Revenue filed an application under Section 256(1) of the Act, leading to this reference.

What did the High Court hold?

The High Court held that the Appellate Tribunal was right in law and on facts in confirming the order of the CIT(A) directing the Assessing Officer to grant deductions under Sections 80HH and 80-I. The reasoning was based on Sub-section 9 of Section 80HH, which states that if an assessee is entitled to deduction under Section 80-I or 80J in relation to an industrial undertaking or hotel business to which Section 80HH applies, the effect is to be first given to Section 80HH. This provision clarifies that the application of Section 80HH does not oust the application of Section 80-I or 80J. Sections 80HH and 80-I/80J are not mutually exclusive; preference is given to Section 80HH first, after which Section 80-I or 80J shall be applied. The Court also referred to its own view in Commissioner of Income-Tax vs. Sidhpur Isabgul Processing Co. Ltd. [252 ITR 777]. The reference was answered in favour of the Assessee.

What were the issues?

1. Whether the Appellate Tribunal was right in law and on facts in confirming the order passed by the Commissioner of Income-tax (Appeals) directing the Assessing Officer to grant deduction under Section 80HH and 80-I of the Act. Assessee's contentions: Not recorded as the opponent did not appear. Revenue's contentions: The Tribunal was not justified in holding that the simultaneous benefits flowing from Sections 80HH and 80-I were available to the Assessee.

Which sections of the Income-tax Act were involved?

Section 80HH,Section 80-I,Section 80J,Section 256(1)

AI-generated summary — verify with the full judgment below

ITR/30/1999 1/4 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD INCOME TAX REFERENCE NO. 30 OF 1999 For Approval and Signature: HONOURABLE MR.JUSTICE R.S.GARG HONOURABLE MR.JUSTICE D.H.WAGHELA ========================================================= 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the Constitution of India, 1950 or any order made thereunder ? 5 Whether it is to be circulated to the Civil Judge? ========================================================= COMMISSIONER OF INCOME TAX - Applicant(s)

Versus APOLLO CONSTRUCTION CO.P.LTD. - Opponent(s) ========================================================= Appearance : MR. MANISH R. BHATT for Applicant(s). NONE for Opponent(s). ========================================================= CORAM : HONOURABLE MR.JUSTICE R.S.GARG and HONOURABLE MR.JUSTICE D.H.WAGHELA Date : 01/11/2006 ORAL JUDGMENT (Per : HONOURABLE MR.JUSTICE R.S.GARG)

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