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2010 (11) TMI 793 - HC - Income TaxExport profit - Deduction u/s 80HHC in the computation of book profit u/s 115JB - whether the assessees whose gross total income after setting off business loss and depreciation carried forward from previous years is nil are entitled to deduction under s. 80HHC in the computation of book profit under s. 115JB(2)(iv) - Held that:- Export profit eligible for deduction under s. 80HHC, assessees are certainly entitled to deduction under s. 80HHC but it is only by following the method provided under sub-ss. (3) and (3A) of s. 80HHC, restriction contained in s. 80AB or s. 80B(5) could not be applied in as much as carry forward of business loss or depreciation should not be first set off leaving gross total income nil, which disentitles the assessee for deduction under other provisions of Chapter VIA-C which includes s. 80HHC also. But assessees' contention that export profit has to be computed with reference to the P and L a/c prepared under the Companies Act is equally unacceptable because there is no such provision in s. 80HHC to determine export profit with reference to P and L a/c maintained under the Companies Act, assessees are entitled to deduction of export profit under s. 80HHC and the relief is to be granted in terms of sub-ss. (3) and (3A) of the said section, AO directed to recompute the book profit by granting deduction under s. 80HHC in terms of above findings and the decision of the Supreme Court in Ajanta Pharma Ltd.'s case (2010 (9) TMI 8 - SUPREME COURT) - direction to the AO to recompute the book profit by granting deduction under s. 80HHC.
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