TMI Blog2008 (12) TMI 191X X X X Extracts X X X X X X X X Extracts X X X X ..... - MRS. PRABHA SRIDEVAN and K. K. SASIDHARAN JJ. Tax Case (Appeal) No. 60 of 2008 and M. P. Nos. 2 and 3 of 2008. R. Vijayaraghavan for Subbaraya Aiyar for the appellant. T. Ravi Kumar for the respondent. JUDGMENT The judgment of the court was delivered by MRS. PRABHA SRIDEVAN J. - The assessee claimed deductions under sections 80HHC and 80-IA of the Income-tax Act, 1961. It had maintained separate books of account for the optic division and the opto electrical division. It claimed deduction under section 80-IA at 100 per cent. and deduction under section 80HHC was also claimed for the exports carried out from the optic division. The Assessing Officer limited the deduction claimed under section 80HHC invoking the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9-2000. 4. After the amendment, sub-section (9A) reads as follows: "Where any amount of profits and gains of an industrial undertaking or of a hotel in the case of an assessee is claimed and allowed under this section for any assessment year, deduction to the extent of such profits and gains shall not be allowed under any other provisions of this Chapter under the heading 'C—Deductions in respect of certain incomes', and shall in no case exceed the profits and gains of the undertaking or hotel, as the case may be." 5. Paragraph 35 in the Central Board of Direct Taxes Circular No 772 dated December 23, 1998 reads as follows: "35. Amendment in section 80HHD and section 80-IA to prevent double deduction of same profit: 35.1 Under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be allowed on the gross total income, even when deduction under section 80HHC was already claimed and allowed and whether the total tax benefit/double tax deduction can be allowed under two different provisions" ? 7. The Rajasthan High Court has held as follows (pages 447 and 448): "When there is no such provision or intention of the Legislature to allow deduction under section 80-IA on the balance amount, there is no justification to allow deduction under section 80-IA only on the balance amount, i.e., the amount remained after deduction under section 80HHC of the Act. In the absence of such an intention, deduction under section 80-IA of the Act should also be allowed on the gross total amount, as the words used in sub-section (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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