JUDGMENT:

BHAN, J.

1. With the leave of the Court, the Commissioner of Income Tax, Pune (for short "the Revenue") has filed the present appeal against the Final judgment and order dated 24th July, 2000 passed by the High Court of Bombay in ITA No. 458/AN/1998 by which the High Court has affirmed the decision of the Tribunal and dismissed the appeal filed by the Revenue. The issue involved in this appeal relates to the provisions of the Income Tax Act, 1961 (for short "the Act").

2. The High Court framed the following two questions of law for its determination:

1. Whether Section 80-AB can be applied to Section 80-HHC of the Act?

2. Whether, in determination of business profit under Section 80HHC, the unabsorbed business losses of the earlier years under Section 72 of the Act should be set off?

3. The High Court has decided both the questions against the Revenue and in favour of the assessee. On the first point, the High Court has held that Section 80-HHC is independent of Section 80-AB and Section 80-AB does not control Section 80HHC of the Act. On the second point, it has been held that unabsorbed business losses of the earlier years could not be set off against the profits from expo