COMMISSIONER OF INCOME TAX Vs. GOGINENI TOBACCO LIMITED

JUDGEMENT

(1.) THIS petition is filed by the Revenue under Sec-tion 256(2) of the Income tax Act, 1961.

(2.) THE facts in brief are as follows :

(3.) THE Commissioner of Income-tax held that there is a difference of opinion between the judgments of the Gujarat High Court and the Orissa High Court. THE Gujarat High Court in the case of Paushak Ltd. v. CIT , held that unabsorbed losses and unabsorbed depreciation would have to be deducted before arriving at the figures that would be exigible for the purpose of deduction under Section 80HH of the Act. On the other hand, the Orissa High Court in CIT v. Tarun Vdyog , held that gross total income computed in accordance with the provisions contained in Sections 30 to 43A would not be relevant for the purpose of deduction under Section 80HH and that the relief under Section 80HH was to be allowed on the profits of the industrial undertaking before deducting the investment allowance allowed under Section 32A.