TaxTMI 
TaxTMI 
2002 (11) TMI 87
X X X X Extracts X X X X
X X X X Extracts X X X X
....eting the assessment for the years 1987-88 and 1988-89 restricted the deduction available under section 80HHC of the Act applying the provisions of sub-section (1) of section 80VVA of the Act. A sum of Rs. 2,04,475 was not granted to the assessee in respect of deduction admissible under section 80HHC for the assessment years 1987-88 and 1988-89. The assessment year with which we are concerned is 1989-90. The Assessing Officer, in the assessment of the assessee for the assessment year 1989-90, held that the assessee was not entitled to carry forward and set off the deduction under section 80HHC of the Act relating to the earlier years on the ground that the deduction cannot be carried for ward and his view was also confirmed by the Commissio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....George Philip, learned counsel for the assessee. Section 80VVA of the Act was introduced by the Finance Act, 1983, with effect from April 1, 1984, to curb the expenditure in the case of companies which had paid no tax or paid nominal tax due to absorption of various fiscal incentives and concessions granted to the companies though the companies were highly profitable companies. The section came to be introduced when it was found that several highly profitable companies were able to reduce their tax liability to zero though they continued to pay dividend and, hence, the restriction was imposed to the effect that the fiscal incentives and deductions granted under Chapter VI-B of the Act should not exceed 70 per cent. of the profits. Sectio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....xt following assessment year which means that it is liable to be allowed in that year in accordance with the provisions of the Act. In other words, the assessee has a statutory right to carry forward the unallowed deduction. The effect of section 80VVA(4) of the Act is that the unallowed deduction under sub-section (2) of section 80VVA of the Act is taken to be deduction allowable in the next following assessment year. We are, therefore, of the view that notwithstanding the deletion of section 80VVA of the Act, the assessee is entitled to claim the deduction in accordance with law and the deletion of section 80VVA(4) has no effect as the disallowed deduction is deemed to be a deduction allowable in the next following assessment year. &nb....
X X X X Extracts X X X X
X X X X Extracts X X X X
....set-off claimed." Though the Supreme Court was dealing with a case of repeal of an enactment, the principle laid down by the Supreme Court would apply to carry forward the deduction provided under section 80VVA(4) of the Act. Hence, we are of the view that it is not necessary to consider the larger question that section 6 of the General Clauses Act does not apply to the omission of a provision and the omission of a provision is different from "repeal" as held by the Supreme Court in Rayala Corporation P. Ltd. and M.R. Pratap v. Director Of Enforcement [1969] 2 SCC 412; AIR 1970 SC 494 and Kolhapur Canesugar Works Ltd. v. Union of India, AIR 2000 SC 811; [2000] 2 SCC 536, as the assessee had secured a right to carry forward the unabsorbed....