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2016 (3) TMI 463 - HC - Income TaxDeduction under Section 80HHC - whether calculated without excluding the profit of Daman Unit of the assessee on which 100% deduction allowed under Section 80IB as held by ITAT - Held that:- Same question came up for consideration in the case of Commissioner of Income Tax Vs. M/s. Atul Intermediates [2014 (4) TMI 676 - GUJARAT HIGH COURT ] wherein held Sub-section (9) of section 80IA was enacted to have universal application to all deductions under sub-chapter C of Chapter VI - It was neither possible nor expected of the Legislature to make individual matching provisions in large number of statutory provisions recognizing deductions under various situations - Such provisions are often times made for a limited period, new deductions are introduced from time to time and old deductions withdrawn - different formulae have been provided for manufacturing exporter and trader and in case of an assessee whose exports comprise of both the sources - at the stage of sub-section (3) of section 80HHC effect of sub-section (9) of section 80IA would apply - clause (baa) to explanation to section 80HHC defines a term 'profits of the business' - While working out the business profits as specified therein, in terms of sub-section (9) of section 80IA the profit or gain which had already been allowed deduction to the extent mentioned therein would have to be ignored. In IPCA Laboratory Ltd. v. Deputy Commissioner of Income-Tax reported in [2004 (3) TMI 9 - SUPREME Court] it has been held that Section 80AB is also in Chapter VI-A - It starts with the words "where any deduction is required to be made or allowed under any Section of this Chapter" - This would include Section 80HHC - Section 80AB further provides that "notwithstanding anything contained in that Section" - Thus Section 80AB has been given an overriding effect over all other Sections in Chapter VIA -Section 80HHC does not provide that its provisions are to prevail over Section 80AB or over any other provision of the Act. Section 80HHC would thus be governed by Section 80AB - Section 80AB makes it clear that the computation of income has to be in accordance with the provisions of the Act - If the income has to be computed in accordance with the provisions of the Act, and then not only profits but also losses have to be taken into consideration – Decided in favour of Revenue.
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