COMMNR. OF INCOME TAX, PUNE vs SHIRKE CONSTRUCTION EQUIPMENT LTD.

The Supreme Court ruled that Section 80-HHC of the Income Tax Act, 1961 is governed by Section 80-AB, thereby overruling the Bombay and Kerala High Courts' decisions which held that Section 80-HHC is independent. The Court clarified that unabsorbed business losses under Section 72 cannot be set off against profits from exports, establishing a clear interpretation of the provisions. Consequently, the appeal by the Commissioner of Income Tax was dismissed, affirming the Tribunal's decision in favor of the assessee.