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2023 (6) TMI 726 - AT - Income TaxDeduction u/s 80HHC - whether to be computed on the residual profits remaining after allowing deduction u/s 80IA of the Act in terms of section 80IA(9) ? - HELD THAT:- Since assessee has fairly conceded that the reference to the Larger Bench of the Supreme Court on this issue in the case of Micro Lab [2015 (12) TMI 708 - SUPREME COURT] has been dismissed and Hon’ble jurisdictional High Court has decided the issue against the assessee in the case of Atul Intermediates [2014 (4) TMI 676 - GUJARAT HIGH COURT] the grounds raised by the assessee merits no consideration and are dismissed. Appeal of the assessee, is therefore, dismissed. Allowance of claim of deduction u/s 80HHC - Misc. income such as sale of scrap, stores etc; and Income in the nature of contract compensation - HELD THAT:- With regard to allowance of deduction u/s 80HHC on the sale of scrap and parts, Revenue cannot be in any grievance since as per the AO itself, it is allowable to the assessee. Contract compensation received, considering the uncontroverted facts relating to the nature of the receipt, we agree with theCIT(A) that it has arisen from the business of the assessee, and therefore, the CIT(A) has rightly held that the assessee is entitled to claim deduction u/s 80HHC. Grounds raised by the Revenue are accordingly dismissed.
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