Every provision of law should be interpreted properly in accordance with law

Heard learned counsel on both sides.

The question which requires to be answered in this case is as follows:

"Whether, on the facts and circumstances of this case and in law, the Income Tax Appellate Tribunal was correct in directing the Department to reduce 90% of the net commission received by the assessee from the profits of the business for computation of deduction under Section 80HHF (of Income Tax Act, 1961)?"

At the relevant time, a group of matters on the interpretation of Section 80HHC (of Income Tax Act, 1961), was pending in this Court in the case of Topman Exports vs. Commissioner of Income Tax [Civil Appeal No.1699 of 2012 @ S.L.P. (C) No.26558 of 2010] as well as in the case of M/s. ACG Associated Capsules Private Limited vs. Commissioner of Income Tax [Civil Appeal No.1914 of 2012 @ S.L.P. (C) No.32450 of 2010]. Later on, Topman Exports [supra], reported in [2012] 342 I.T.R. 49 (of Income Tax Rules, 1962), and M/s. ACG Associated Capsules Private Limited [supra], reported in [2012] 343 I.T.R. 89 (of Income Tax Rules, 1962), were decided on 8th February, 2012. One of the points which the Department raised was that the provisions of Section 80HHF (of Income Tax Act, 1961) may not be identical to the provisions of Section 80HHC (of Income Tax Act, 1961). Consequently, this case was de-tagged.

Under the above circumstances, learned counsel for the petitioner- assessee seeks permission to withdraw this transferred case so that the High Court can answer the above question on the interpretation of Section 80HHF (of Income Tax Act, 1961) in accordance with law.

According to learned counsel for the assessee, there is no difference between the provisions of Section 80HHC (of Income Tax Act, 1961) and Section 80HHF (of Income Tax Act, 1961), whereas, according to learned counsel for the Department, there is a difference between these two sections and their respective applicability.

Under the above circumstances, we request the High Court to decide the above question in accordance with law expeditiously, if possible, within a period of three months from today. The High Court may also consider in that light the judgement of this Court in M/s. ACG Associated Capsules Private Limited [supra].

The transferred case is, accordingly, disposed of as withdrawn.

[S.H. KAPADIA]

[MADAN B. LOKUR]

New Delhi,

August 29, 2012.