C.I.T. (CENTRAL), MADRAS vs CANARA WORKSHOPS (P) LTD., KODIALBALL, MANGALORE

The Supreme Court held that under Section 80E of the Income Tax Act, 1961, profits from an industry cannot be reduced by losses from another industry owned by the same assessee. The Court emphasized that each industry must be evaluated independently for the purpose of deductions, thereby overruling the precedent set in Commissioner of Income-tax, Tamil Nadu-III v. English Electric Company Ltd. The appeal by the Revenue was dismissed, affirming the High Court's decision in favor of the assessee.