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The Assistant Commissioner of Income Tax, Bangalore v. M/s. Micro Labs Ltd.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 7427 of 2012)Decided 10 Dec 2015
Civil Appeal No. 7427 of 2012
Justice Anil R. Dave · Justice Dipak Misra

Background

This is a split decision, not a final judgment. About 50 connected appeals raised a common question: whether an assessee claiming a deduction under Section 80-IA or 80-IB of the Income Tax Act, 1961 could also claim a deduction under Section 80HHC on the same profits. The Bombay High Court had favoured the assessee and the Delhi High Court had favoured the Revenue.

Decision Breakdown

This is a split decision, not a final judgment. Justice Anil R. Dave allowed all the appeals in favour of the Revenue. Justice Dipak Misra reached the opposite conclusion, dismissing the Revenue's appeals and allowing the assessees' appeals. In view of the difference of opinion, the matters were referred to a larger Bench, and the Registry was directed to place them before the Chief Justice of India.

Lesson Learnt

There is no final ruling yet on whether deductions under Section 80HHC and Section 80-IA or 80-IB can both be claimed on the same profits.

Official source (sci.gov.in)View Judgment (PDF)

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