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2014 (5) TMI 12 - HC - Income TaxApplicability of section 14A of the Act - Whether section 14A would apply to provision of Chapter VIA – Held that:- Following Commissioner of Income-tax Versus Kribhco [2012 (7) TMI 591 - DELHI HIGH COURT] Section 14A operates in respect of the income not forming part of the total income - Chapter VIA while computing the total income of the assessee from his gross total income in accordance with and subject to the provision of this chapter, the deductions specified are permissible - the taxable income of the assessee would surely get reduced and yet there is marked difference between the exempted income and the deduction provided under Chapter VIA - the investment in shares made by the assessee which earned him the dividend was from his own income - Section 14A would have no application in respect of the income not being taxable on account of deduction u/s 80P(2)(d) - Both the authorities have rightly held that there is no application of section 14A as far as the deduction under section 80A to 80U under Chapter VIA of the Act are concerned. The income which qualifies for deductions u/s 80C to 80U has to be first included in the total income of the assessee - deduction is to be allowed in accordance with and subject to the fulfillment of the conditions of the respective provisions - This is also subject to Section 80AB and 80A(1) and (2). Chapter VIA does not postulate or state that the incomes which qualify for the said deduction will be excluded and not form part of the total income - They form part of the total income but are allowed as a deduction and reduced – Decided against Revenue.
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