S.C : The only reason for declining the relief to the assessee was the failure of compliance of the second proviso to s. 80HHC of the IT Act.

Supreme Court Of India

Karimjee (P) Ltd. vs. DCIT & ANR.

Section 80HHC

Asst. Year 1987-88

Syed Shah Mohammed Quadri & S.N. Variava, JJ.

Civil Appeal No. 5692 of 2002

9th September, 2002

ORDER

By the court :

Heard learned counsel for the parties. Leave is granted. The only reason for declining the relief to the assessee was the failure of compliance of the second proviso to s. 80HHC of the IT Act. In respect of other requirements, there is no dispute that the assessee has complied with the same. While the matter was being argued, we permitted the learned counsel for the assessee to comply with the requirements of the said proviso and it is now represented that an amount equal to the amount of deduction claimed under the sub-section has been debited from the P&L a/c of the previous year relevant to the asst. yr. 1987-88 in respect of which the deduction was to be allowed and that the same was credited to a reserve account to be utilised for the purpose of the business of the assessee. In view of the compliance of the said proviso, the order under challenge is set aside and the assessee is held entitled to deduction under s. 80HHC in the accounting year 1986-87. The civil appeal is, accordingly, allowed. No costs.

[Citation : 271 ITR 564]

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