M/S Lucas Tvs Ltd v. The Assistant Commissioner

IN THE HIGH COURT OF JUDICATURE AT MADRAS Judgment Reserved on : 15.04.2026 Judgment Delivered on : 02.06.2026 Coram: THE HONOURABLE Dr.JUSTICE G.JAYACHANDRAN and THE HONOURABLE MR.JUSTICE R.SAKTHIVEL --- M/s.Lucas TVS Limited, No.6, Pattulos Road, Chennai-600 002. .. Appellant in both the appeals Vs. The Assistant Commissioner of Income Tax, Company Circle – III (4), Chennai-600 034. .. Respondent in both the appeals Tax Case Appeal No.74 of 2009 filed under Section 260-A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal,

"B"

Bench,

Chennai,

dated

25.05.2007

in I.T.A.No.2531/Mds/2004.

Tax Case Appeal No.75 of 2009 filed under Section 260-A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal,

"B"

Bench,

Chennai,

dated

25.05.2007

in I.T.A.No.2532/Mds/2004. For appellant in both the appeals : Mr.R.Venkatanarayanan and Mr.Subbaraya Aiyar For respondent in both the appeals : M/s.V.Pushpa, Senior Standing Counsel and M/s.J.Harshini COMMON JUDGMENT Dr.G.Jayachandran, J These appeals are filed by the assessee, challenging the order of the Income Tax Appellate Tribunal in their appeals against the assessment orders for the Assessment Year 1999-2000 and 2000 – 2001, respectively.

¶2The common issue in both the appeals is with regard to the computation of relief under Section 80-HHC. The restriction of the deduction is under

Section 80-HHC from the gross total income, but only after the deduction under Section 80-IB by the assessing officer, on appeal, was confirmed by the appellate authority as well as the Tribunal. That apart, it was also contended by the assessee that reopening of assessment under Section 148 of the Income Tax Act, is not really in the interest of Revenue.

¶3The learned counsel for the appellant as well as the learned Senior Standing Counsel for the Revenue fairly submitted that the impugned orders of the Tribunal, require re-visit, in view of the authoritative pronouncement of the Honourable Supreme Court in case of Shital Fibers Limited Vs. Commissioner of Income Tax (2025 (174) Taxmann.com 807 SC).

¶4On considering the submissions made by both sides and on a perusal of the judgment of the Honourable Supreme Court in the said Shital Fibers case, we are of the view that it is appropriate to remand back the matter to the Assessing Officer to re-compute the tax by following the dictum laid

down by the Supreme Court in respect of simultaneous deduction under Section 80-IB and Section 80-HHC of the Income Tax Act and pass appropriate assessment order.

¶5In the result, both these appeals are disposed of with the above direction. There shall be no order as to costs. (G.J., J) (R.S.V., J)

02.06.2026 Index: Yes/no Speaking Order: Yes/no Neutral Case Citation: Yes/no cs To The Assistant Commissioner of Income Tax, Company Circle – III (4), Chennai-600 034.

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