2000 (2) TMI 9

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....tilal Pesticides (I) Pvt. Ltd. v. CIT [1994] 207 ITR 636, is assailed before us. It concerns interpretation of section 80HH of the Income-tax Act, 1961 (for short the "Act"), and pertains to the assessment years 1979-80 and 1980-81. The question of law which the High Court answered in the affirmative and in favour of the Revenue and against the appellant is as under : "Whether, on the facts and....

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....th and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to twenty per cent thereof." In support of its submission in the High Court the appellant placed reliance on a decision of this court in Cloth Traders (P.) Ltd. v. Addl. CIT [1979] 118 ITR 243. This judgment was delivered on an i....

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.... Cloth Traders (P.) Ltd.'s case [1979] 118 ITR 243 (SC) was overruled in Distributors (Baroda) P. Ltd. v. Union of India [1985] 155 ITR 120 (SC). After the decision in Cloth Traders (P.) Ltd.'s case [1979] 118 ITR 243 (SC), two sections 80AA and 80AB were introduced by the Finance (No. 2) Act, 1980. While section 80AA was to have retrospective effect with effect from April 1, 1968, section 80AB wa....

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.... Act. The High Court, therefore, relying on the decision of this court in Distributors (Baroda) P. Ltd.'s case [1985] 155 ITR 120 answered the question in favour of the Revenue and against the assessee. Mr. Ramamurti, learned senior counsel, appearing for the appellant, submitted that even though Cloth Traders (P.) Ltd.'s case [1979] 118 ITR 243 (SC), was overruled in Distributors (Baroda) P. L....