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2011 (5) TMI 837 - AT - Income TaxWhether deduction under section 801B and 80HHC were to be calculated independently on the eligible profits of the appellant and, instead, calculated deduction under section 80HHC on the residual profits after reducing therefrom amount of deduction under section 801B – Held that:- in the case of Associated Capsules Pvt. Ltd. (2011 - TMI - 207058 - BOMBAY HIGH COURT - Income Tax), held that S. 80-IA (9) cannot be interpreted to mean that s. 80-IA deduction has to be reduced for computing s. 80HHC deduction - The reasonable construction of s. 80IA (9) is that where deduction is allowed u/s 80IA (1), then the deduction computed under other provisions under heading ‘C’ of Chapter VIA has to be restricted to the profits of the business that remains after excluding the profits allowed as deductions u/s 80IA, so that the total deduction allowed under the heading ‘C’ of Chapter VIA does not exceed the profits of business. - Assessing Officer is directed to compute the deduction in line with the judgment of Hon’ble Jurisdictional High Court cited, assessee’s appeal is allowed
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