TMI Blog2017 (6) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tances of the case, the Ld. ITAT was legally correct in holding that relief u/s 80IB of the Act is to be deducted from profits and gains of business before computing relief u/s 80HHC of the Act? 2.2 This Court while admitting the appeal No.44/2009 on 02.02.2009 has framed the following substantial question of law: Whether in the facts and in the circumstances of the case, the Ld. ITAT was legally correct in holding that relief u/s 80IB of the Act is to be deducted from profits and gains of business before computing relief u/s 80HHC of the Act? 2.3 This Court while admitting the appeal No.109/2009 on 04.03.2009 has framed the following substantial question of law: Whether in the facts and in the circumstances of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in different provisions the Legislature has used different language for restricting or limiting the claim of deductions. The use of language in statutory provisions in such complex situations must be peculiar to every situation the Legislature may seek to meet with. Merely because in some of the provisions certain disallowances are expressed in different language would not by itself mean that sub-section (9) of section 80IA was aimed to have restricted and limited scope of application. 29. The contention that no such matching provision was made in section 80HHC of the Act would clearly indicate the Legislative intent also, in our opinion, is not a valid argument. Sub-section (9) of section 80IA was enacted to have universal applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sources. It is, therefore, at the stage of sub-section (3) of section 80HHC effect of sub-section (9) of section 80IA would apply. It is true that clause (baa) to explanation to section 80HHC defines a term `profits of the business'. While working out the business profits as specified therein, in terms of sub-section (9) of section 80IA the profit or gain which had already been allowed deduction to the extent mentioned therein would have to be ignored. 6. In view of above observations of this Court, present appeals are dispose of and the questions posed for our consideration are decided in favour of the revenue and against the assessee. However, the Assessing Officer may give effect to this order only after the decision of the La ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and against the department subject to the view which is also referred to Larger Bench as per the order of the Hon ble Supreme Court reported in [2016] 380 ITR 1 (SC). Therefore, parties will be abide by the decision of the Hon ble Supreme Court which is subject to applicability of the provision for the relevant assessment year. The appeal stands disposed off. 4. In view of the aforesaid decision, the parties will be governed by the said decision subject to decision of Supreme Court in the case reported in [2016] 380 ITR 1 (SC). The parties will be abide by the decision of the Supreme Court. 5. In that view of the matter, the issue is answered in favour of the assessee and against the department. 6. The appeals stand allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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