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2011 (2) TMI 1210 - HC - Income TaxDeductions under section 80-IB and under section 80HHC - When the deduction of profits and gains of an undertaking is allowed under section 80-IA, whether such profits and gains has to be deducted before computation of the profits and gains under section 80HHC or after arriving at the profits and gains of business - held that:- sections 80HHC and 80-I are independent of each other - Deductions in respect of certain incomes" are independent of each other and the assessee is entitled to claim deduction under more than one section, the deduction has to be necessarily in the profits and gains arrived at after making the claims in terms of the aforesaid section. Though the Delhi High Court as well as the Kerala High Court have taken a contrary view of which reliance is placed by the Revenue, in the light of the express provisions contained in sub-section (a) of section 80-IA, clause (baa) to the Explanation to section 80HHC and the explanation in the circular referred to supra and keeping in mind the object with which these provisions are introduced we are of the view that the contention of the Revenue is unsustainable and the Tribunal has committed no illegality, in respect of cases where it had allowed the appeal. - Decided in favor of assessee.
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