1. The point involved in the present case is: whether S.80 - HH and 80 - I of the Income Tax Act , 1961 are independent of each other and therefore a new industrial unit can claim deductions under both the sections on the gross total income independently or that deduction under S.80 - I can be taken on the reduced balance after taking into account the benefit taken under S.80 - HH.

2. The Madhya Pradesh High Court in J. P. Tobacco Products (P) Ltd. v. CIT, 1998 (229) ITR 123 (MP) took the view that both the sections are independent and, therefore, the deductions could be claimed both under S.80 - HH and 80 - I on the gross total income. Against this judgment a special leave petition was filed in this Court which was dismissed on the ground of delay on 21-7-2000 [see CIT v. J. P. Tobacco Product (P) Ltd., 2000 (245) ITR 71 (St.)].

3. The decision in J. P. Tobacco Products (P) Ltd., 1998 (229) ITR 123 (MP) was followed by the same H