Judgment

BHAGWATI, J. (For himself, Chandrachud CJI., D. P. Madon and M. P. Thakkar, JJ.) : - This writ petition raises an interesting question of construction of S. 80M of the Income-tax Act, 1961. This question would appear to be concluded in favour of the assessee by the decision of this Court in Cloth Traders Limited v. Addl. Commr. of Income-tax, 118 ITR 243: but the correctness of the view taken in that case has been challenged in the present writ petition. Since the decision in Cloth Traders case (supra) was given by a Bench of three Judges, it is obvious that its validity can be canvassed before this Bench which consists of five Judges. If this Bench too takes the same view in regard to the construction of S. 80M as that taken in Cloth Traders case (supra), it would become necessary to consider the question of constitutional validity of S. 80AA which was introduced in the Income-tax Act, 1961 by S. 12 of the Finance (No. 2) Act, 1980 with a view to overriding with retrospective effect the construction placed on S. 80M by this Court in Cloth Traders case (supra). If on the other hand, this Bench disagrees with the view taken in Cloth Traders case (supra) and hold that even be