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2017 (2) TMI 1216 - RAJASTHAN HIGH COURTDeductions u/s 80I & 80HH - assessee has not maintained separate books of accounts for claiming deduction - Held that:- As decided in Transpek Silox Industry Ltd. vs. Deputy Commissioner of Income Tax [2016 (7) TMI 1303 - GUJARAT HIGH COURT] Sub-section (9) of section 80IA was enacted to have universal application to all deductions under sub-chapter C of Chapter VI - different formulae have been provided for manufacturing exporter and trader and in case of an assessee whose exports comprise of both the sources - at the stage of sub-section (3) of section 80HHC effect of sub-section (9) of section 80IA would apply - clause (baa) to explanation to section 80HHC defines a term 'profits of the business' - While working out the business profits as specified therein, in terms of sub-section (9) of section 80IA the profit or gain which had already been allowed deduction to the extent mentioned therein would have to be ignored. In IPCA Laboratory Ltd. v. Deputy Commissioner of Income-Tax reported in [2004 (3) TMI 9 - SUPREME Court] it has been held that Section 80AB is also in Chapter VI-A - It starts with the words "where any deduction is required to be made or allowed under any Section of this Chapter" - This would include Section 80HHC - Section 80AB further provides that "notwithstanding anything contained in that Section" - Thus Section 80AB has been given an overriding effect over all other Sections in Chapter VIA -Section 80HHC does not provide that its provisions are to prevail over Section 80AB or over any other provision of the Act. Section 80HHC would thus be governed by Section 80AB - Section 80AB makes it clear that the computation of income has to be in accordance with the provisions of the Act - If the income has to be computed in accordance with the provisions of the Act, and then not only profits but also losses have to be taken into consideration. Assessing Officer may give effect to this order only after the decision of the Larger Bench of the Supreme Court in the case referred to it by the decision reported in [2015 (12) TMI 708 - SUPREME COURT ].– Decided in favour of Revenue
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