High Court affirms deduction for industrial unit under Sections 80HH & 80-I, emphasizing consistency in benefit grant

The Rajasthan High Court upheld the Tribunal's decision to allow the deduction under sections 80HH and 80-I for an industrial unit, emphasizing the principle of consistency in granting the benefit. The Court rejected the argument that the deduction was not available due to the factory starting production after a certain date. Relying on precedent, the Court dismissed the appeal, stating that the issue was settled by a previous judgment.

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Issues:
- Entitlement to claim deduction under section 80HH and section 80-I for an industrial unit.

Analysis:
1. The appeal before the Rajasthan High Court involved the question of whether the assessee is entitled to claim deduction under both section 80HH and section 80-I in relation to the industrial unit operated by them. The Tribunal had relied on judgments from the Rajasthan High Court and the Madhya Pradesh High Court to support its decision.

2. The Court examined the judgment in C.I.T. Vs. Chokshi Contacts P. Ltd. and noted that it fully addressed the controversy in the present case. The appellant's counsel argued that since the factory began production after 1.4.1990, deduction under section 80HH could not be claimed. However, the Commissioner had found that manufacturing of quick lime started before 1.4.1990, and production of hydrated lime commenced after that date. The Tribunal, considering the principle of consistency, upheld the deduction under section 80HH as it had been allowed in previous assessment years.

3. The Court agreed with the Tribunal's reasoning, emphasizing that the Department had consistently granted the benefit of section 80HH to the assessee. Therefore, the contention that the benefit was not available in this case was rejected. The Court concluded that the issue was settled by the judgment in Chokshi Contacts' case against the Revenue, and accordingly, the appeal was dismissed.

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