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2017 (6) TMI 21 - RAJASTHAN HIGH COURTComputation of deduction u/s 80HHC - whether relief u/s 80IB of the Act is to be deducted from profits and gains of business before computing relief u/s 80HHC ? - Held that:- The parties will be governed by the said decision subject to decision of Supreme Court in the case of ASST. COMMR. OF I.T BANGALORE Versus M/s MICRO LABS LTD.[2015 (12) TMI 708 - SUPREME COURT] stating that the the two provisions are required to be read harmoniously, for Section 80-IA(9) should not be treated as a redundant provision as it was introduced for the purpose of achieving a clear objective. Consequently, it has held that the deduction under Section 80HHC cannot be computed without reference to the bar under Section 80IA(9). It is well established in law that the language of the statute must be read as it is, and the statute must not be read by adding or substituting the words unless it is absolutely necessary to do so. Section 80-IA(9) does not affect the computability of deduction under various provisions under heading C of Chapter VI-A, but it affects the allowability of deductions computed under various provisions under heading C of Chapter VI-A, so that the aggregate deduction under section 80-IA and other provisions under heading C of Chapter VI-A do not exceed 100 per cent - Central Board of Direct Taxes Circular No. 772 dated December 23, 1998 wherein it is stated that section 80-IA(9) has been introduced with a view to prevent the taxpayers from claiming repeated deductions in respect of the same amount of eligible income and that too in excess of the eligible profits - Decided in favor of the assessee. See Associated Capsules Private Limited v. Deputy Commissioner of Income Tax and another [2011 (1) TMI 787 - BOMBAY HIGH COURT] - Decided in favour of assessee.
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