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2020 (5) TMI 515 - PUNJAB AND HARYANA HIGH COURTRectification u/s 154 - deduction u/s 80-HH - assessee argued that the issue with regard to deduction under Section 80-HH was specifically decided by CIT (A) hence the AO could not have passed order under Section 154 for rectifying the mistake - HELD THAT:- The contention raised is not well-founded. CIT (A) allowed the appeal holding that deduction under Section 80-HH should have been allowed @ 20% of the profit for the year without considering the actual amount allowable. Re-compute the deduction in respect of unit 'A' and unit 'B'@ 20% of the profit ultimately determined for the year, the matter was remitted back to the AO. While re-computing the deduction, the Assessing Officer considered the profit earned from non-industrial activities and also did not deducted unabsorbed brought forward losses. It was to correct this mistake apparent on the record that Section 154 was invoked. Suffice to say that the issue dealt with by the 1st Appellate Authority was not subject-matter of proceedings under Section 154 of the Act, rather 20% of the profit earned from industrial activities was considered and deduction was allowed. There is no perversity in the order passed. Question No. 1 is answered against the assessee. Deduction under Section 80-HH - Tribunal relying upon the decision of the Supreme Court in Distributors (Baroda) Pvt. Ltd. v. Union of India and others [1985 (7) TMI 1 - SUPREME COURT] upheld the order of the AO reducing the unabsorbed brought forward loss from the profit of the current year for the purpose of computing deduction under Section 80-HH - Assessee has not been able to show that the decision of the Supreme Court is not applicable in the facts of the present case, hence the question is answered against the assessee.
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