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2010 (11) TMI 91 - HC - Income TaxSection 80HHC and Section 80IA of the Income Tax Act, 1961 - Whether deduction to the extent of such profits claimed under Section 80IA would not be allowed for computing deduction under Section 80 HHC – Appellant submitted that, She emphatically argued that in view of a non-obstante provision contained in Section 80 AB of the Act, which is to be given primacy and should prevail over Section 80 IA (9). On this basis, her submission was that Section 80 AB of the Act was coming in conflict with Section 80IA AB of the Act with Section 80 IA (9) and 80 IB (13) if the Rule of Literal Interpretation is applied and, therefore, the two provisions needed to be harmonized. According to her, otherwise, Section 80 AB would be rendered otiose. - Held that - there is no conflict within the two provisions as was painstakingly tried to be demonstrated by Ms. Kapila. Section 80AB deals with computation of deduction on "gross total income" which purpose is achieved even otherwise on reading these provisions and interpreting the same in the manner done by her herein before. On the contrary, if the interpretation suggested by Ms. Kapila is accepted, it will not only do violence to the clear mandate of Section 80 IA (9) but shall have the effect of rendering that provision redundant though specifically introduced by the Legislature with the purpose of achieving clear objective. For the purpose of computing deduction under Section 80 HHC of the Act, deduction already allowed under Section 80-IA has to be reduced. The question of law thus stands answered in favour of the Revenue and against the assessee.
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