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2015 (6) TMI 245 - AT - Income TaxDisallowance u/s 40(a)(ia) - invoking section 80A(4) - Held that:- There is no claim under any of the provisions covered in section 80A(4) of the Act. Therefore, invoking section 80A(4) of the Act in the present case to deny assessee's claim is anyway not justified. So however, even if for a moment, we accept the invoking section 80A(4) of the Act by the Revenue yet it would cover a situation if multiple deductions are claimed for same profits in the same assessment year. Ostensibly, that is not the case in the present situation because there is no multiple deductions claimed by the assessee qua the impugned amount in the assessment year under consideration i.e. 2010-11. Therefore, we find that there is no relevance of section 80A(4) of the Act in order to test the efficacy of the claim for deduction of ₹ 70,35,997/- made by the assessee on the strength of the proviso to section 40(a)(ia) of the Act. Thus, this stand of the Revenue is liable to be rejected. Whether the assessee would derive double benefit if the claim was allowed because in the earlier year such income has not suffered tax on account of the deduction u/s 10B ? - Held that: - We are unable to find any statutory support to the plea of the Revenue. It is a well-settled rule of law that where language is clear and not capable of any other construction then the same has to be applied. In this context, the assessee had placed reliance on the parity of reasoning laid down in the case of Elphinstone Spinning And Weaving Mills Co. Ltd. vs. CIT (1955 (9) TMI 52 - BOMBAY HIGH COURT) held that the claim of the Revenue was unsustainable, as where the language is clear and not capable of any other construction, then however illogical the position, however absurd the result, however much the construction put may defeat the object of the Legislature, the statute must be construed according to the plain language used by the Legislature, and the more so, if that plain language supports the subject against the taxing department. Therefore, in conclusion, we uphold the plea of the assessee for deduction u/s 40(a)(ia) of the Act of a sum of ₹ 70,35,997/-. - Decided in favour of assessee.
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