Jashan Textile Mills vs. DCIT (ITAT Mumbai)
In ACIT vs. Rogini Garments 108 ITD 49, the Chennai Special Bench of the ITAT held that in view of s. 80-IA (9), relief under s. 80-IA had to be deducted from the profits and gains before computing relief u/s 80-HHC. M/s SCM Creations was an intervener in that case and a common judgement was passed. The Madras High Court has reversed the judgement of the Special Bench and held that relief u/s 80-IA should not be deducted from profits and gains of business before computing relief u/s 80-HHC. In view of this, it has been held that Rogini Garments is no longer good law.
Note: For the law on conflict between a Special Bench judgement and a non-jurisdictional High Court judgement, see ACIT vs. Aurangabad Holiday Resorts P. Ltd 111 TTJ 741 (Pune).
