Commissioner Of Income Tax, Pune vs Shirke Construction Equipment Ltd

The Supreme Court held that Section 80-HHC of the Income Tax Act, 1961 is governed by Section 80-AB, overruling the Bombay and Kerala High Courts' decisions which stated otherwise. The Court established that unabsorbed business losses from previous years under Section 72 cannot be set off against profits from exports. Consequently, the appeal by the Commissioner of Income Tax was dismissed, affirming the Tribunal's decision in favor of the assessee.