JUDGMENT :

Anil R. Dave, J.

Leave granted in all the Special Leave Petitions.

2. These are several appeals which involve the same issue as in Civil Appeal No.7427 of 2012 and therefore, all the appeals have been heard together at the request of the learned counsel appearing for both the sides but for the purpose of deciding all these appeals, I have considered facts of C.A.No.7427 of 2012, which are as under :

3. Being aggrieved by the judgment delivered in ITA 471 of 2008 dated 11th July, 2011 by the High Court of Karnataka at Bangalore, this appeal has been filed by the Assistant Commissioner of Income Tax, Bangalore. The appellant has been referred to hereinafter as 'the Revenue', whereas the respondent M/s. Micro Labs Ltd. has been referred to as 'the Assessee'.

4. The Assessee was aggrieved by the Order dated 11th January, 2008 passed in ITA No.367/Bang/07 by the Income Tax Appellate Tribunal, Bangalore Bench and had, therefore, approached the High Court of Karnataka at Bangalore. The High Court allowed the appeal and therefore, the Revenue has filed this appeal.

5. The question which had to be considered by the Tribunal as well as by the High Court was whether, while considering the deduction under the provisions of Section 80-IA or/and 80-IB of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'), the Assessee is also entitled to the deduction in respect of the profits and gains under the provisions of Section 80HHC of the Act or whether the Assessee is entitled to deductions under the aforestated all the three Sections in respect of the same profits. Upon perusal of the aforestated Sections and looking at the facts of the case, the Tribunal had come to the conclusion that the Assessee was not entitled to deductions under Sections 80HHC and 80-IB of the Act but the High Court did not agree with the said conclusion arrived at by the Tribunal and decided in favour of the Assessee to the effect that though the Assessee had claimed and was allowed deductions under Section 80HHC of the Act, the Assessee was also entitled to deductions under the provisions of Section 80-IB of the Act in respect of the same profits.

6. Thus, in this appeal what is to be considered is whether the Assessee was entitled to the deductions claimed by it under the aforestated Sections as decided by the High Court in favour of the Assessee. The case of the Revenue is that looking at the provisions of the aforestated Sections, the Assessee is not entitled to the deductions under all the aforestated Sections of the Act.

7. On the aforestated subject, different views have been taken by different High Courts and therefore, this appeal had been admitted. The High Court of Bombay has decided cases in favour of the Assessee whereas a different view has been taken by the High Court of Delhi.

8. For the purpose of better understanding of the issue, relevant extracts of the said Sections of the Act have been reproduced hereinbelow:

"80-IB. Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings.- (1) Where the gross total income of an Assessee includes any profits and gains derived from any business referred to in sub-Sections (3) to (11), (11A) and (11B) (such business being hereinafter referred to as the eligible business), there shall, in accordance with and subject to the provisions of the Section, be allowed, in computing the total income of the Assessee, a deduction from such profits and gains of an amount equal to such percentage and for such number of assessment years as specified in this Section.

(2) to (12) xxx xxx xxx

(13) The provisions contained in sub-Section (5) and sub-Section (7) to (12) of Section 80-IA shall, so far as may be, apply to the eligible business under this Section."

"80-IA. Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc. -

(1) to (8) xxx xxx xxx

(9) Where any amount of profits an