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2012 (11) TMI 349 - ITAT, AHMEDABADDeduction u/s. 80IB - whether to be calculated after reducing the deduction u/s. 80HHC or on stand alone basis - Held that:- Assessee relied on decision of Associated Capsules P. Ltd. Versus DCIT [2011 (1) TMI 787 - BOMBAY HIGH COURT] & CIT Versus Millipore India P. Ltd. [2011 (2) TMI 1210 - KARNATAKA HIGH COURT] wherein held that the tribunal was not right in holding that as per Section 80-IA(1) has to be reduced from the profits of the business of the undertaking while computing deduction under any other section under Chapter VI – A of the Income Tax Act, 1961. CBDT Circular No. 772 dated December 23, 1998 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. Bench has not considered two High Court decisions referred by the assessee which are in his favour & has relied on decision of Special bench of the Tribunal, thus when the judgments of High Court are available on this issue decision of Special bench of the Tribunal is no more relevant - This action of Hon’ble ITAT is against the principle of judicial hierarchy would constitute mistake apparent on record that requires to be modified - in favour of assessee.
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