ENGLISH ELECTRIC CO. LTD. VS COMTHISSIONER OF 4NCOME-TAX, 2001 PTD-SUPREME-COURT-INDIA 3377 (1997)

(Appeal from the judgment and order, dated December 13, 1979 of the Madras High Court in T.C. No.277 of 1976).

Income‑tax‑‑‑

‑‑‑‑Priority industry‑‑‑Scope of relief‑‑‑Losses of non‑priority industries not to be deducted‑‑‑Indian Income Tax Act, 1961, S.80E‑‑‑[CIT v. English Electric Co. Ltd. (1981) 131 ITR 277 reversed].

From the decision of the Madras High Court [see (1981) 131 ITR 277] to the effect that the assessee would be eligible for deduction, under section 80E of the Income Tax Act, 1961, of a percentage of only such profits and gains attributable to a priority industry as remained after adjustment of the losses in non‑priority industry, the assessee preferred an appeal to the Supreme Court. The Supreme Court set aside the decision of the Madras High Court.

CIT v. Canara Workshops (P.) Ltd. (1.986) 161 ITR 320 (SC) fol.

CIT v. English Electric Co. Ltd. (1981) 131 ITR 277 reversed.

A.V. Rangam, Advocate for Appellant.

B.K. Prasad, Advocate for Respondent.

ORDER

In view of the decision of this Court in CIT v. Canara Workshops (P.) Ltd. (1986) 161 ITR 320, this appeal is allowed. The judgment under appeal is set aside. There will be no order as to costs.

M.B.A./1Q52/FCAppeal allowed.