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2014 (9) TMI 19 - HC - Income TaxDeduction of unabsorbed investment allowances – Computation of deduction u/s 80HHC(1) and (3) – Adjustment to be made under the head PGBP – Held that:- The deduction u/s 80HHC(1) is to be allowed on the profits and gains as computed under the head "Profits and gains of business or profession - the deduction u/s 80HHC(3) is required to be computed after setting off of the unabsorbed investment allowance u/s 32A(3) from profits of the business – relying upon Ipca Laboratory Ltd. Versus Deputy Commissioner of Income-Tax [2004 (3) TMI 9 - SUPREME Court] - Section 80HHC would be governed by Section 80AB - deduction u/s 80HHC has to be computed out of the income of profits and gains of business in accordance with the provisions of the Act as stated u/s 80AB. The deductions under Chapter VI-A in which Section 80HHC falls, has to be computed on the gross total income from business determined after deducting all deductions allowable under sections 30 to 43D of the Act - for the purpose of computing the benefits u/s 80HHC, unabsorbed investment allowance is required to be set off while computing the income chargeable under the head "Profits and gains of business or profession” – Decided in favour of revenue.
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