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2014 (9) TMI 98 - ALLAHABAD HIGH COURTComputation of deduction u/s 80I(IA) – Gross total income derived from business of Industrial undertaking – Deduction u/s 80HHC not made – Held that:- The assessee is entitled for the deduction u/s 80HHC as well as 80IA – relying upon IPCA Laboratory Ltd. Vs. Deputy Commissioner of Income Tax [2004 (3) TMI 9 - SUPREME Court] - section 80HHC has been incorporated in the Income Tax Act, 1961, with a view to providing incentive for earning foreign exchange - Even though a liberal interpretation has to be given to such a provision the interpretation has to be as per the wording of the section - It the wording of the section is clear, then benefits which are not available cannot be conferred by ignoring or misinterpreting the words in the section - a plain reading of Section 80HHC makes it clear that in arriving at profits earned from export of both self-manufactured goods and trading goods, the profits and losses in both trades have to be taken into consideration. If after such adjustments there is a positive profit the assessee would be entitled to deduction u/s 80HHC(1) - If there is a loss the assessee would not be entitled to deduction - section 80AB has been given an overriding effect over all other sections, in Chapter VI-A. Section 80HHC does not provide that its provisions are to prevail over section 80AB or over any other provision of the Act - both the deductions under Section 80HHC and 80IA can be granted from the total income - the assessee herself has shown the computation, which was allowed by the AO - the assessee has claimed deduction u/s 80IA in the return of the income on the basis of the balance profit remaining after deduction of benefit u/s 80HHC of the Act – there is no reason to interfere with the order – Decided against Assessee.
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