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2018 (4) TMI 1286 - HC - Income TaxRevision u/s 263 - claim for deduction under Sections 80 HHC (4B) and 80 IB - mandate exclusion of the deduction allowed under Section 80 IB of the Act while quantifying the deduction under Section 80 HHC of the Act - Held that:- Where two views are possible and the income tax officer has taken one view with which the Commissioner of Income Tax does not agree, it cannot be treated as an erroneous order prejudicial to the interest of the Revenue, unless the view taken by the income tax officer is unsustainable in law. Admittedly, the order of assessment was passed on 29.12.2002, much prior to the decision in SCM Creations [2008 (3) TMI 223 - MADRAS HIGH COURT] which was rendered in the year 2008, and the decision in the case of General Optics (Asia) Ltd. (2008 (12) TMI 191 - MADRAS HIGH COURT), which was rendered in the year 2009. The assessing officer interpreted the provisions and passed the order of assessment. The view taken by the assessing officer is clearly supported by the decision of the High Court of Madhya Pradesh in the case of J.P.Tobacco Products (P) Ltd., vs. Commissioner of Income Tax [1996 (8) TMI 29 - MADHYA PRADESH High Court] and Commissioner of Income Tax vs. Nima Specific Family Trust (2000 (12) TMI 87 - BOMBAY High Court). In J.P.Tobacco Products (P) Ltd. (supra) it was held that for the purpose of computing relief, relief granted under Section 80 HH cannot be deducted from the gross total income. In Nima Specific Family Trust (supra), it was held that Section 80HH(9), only talks about priority and does not refer to quantum of deduction as was the case under Section 80J(1); where assessee is entitled to deduction under Section 80HH as well as Section 80-I, deduction of 20 per cent of same profits has to be allowed first under Section 80HH and then a further deduction of 20 percent of same profits has to be allowed under Section 80-I subject to overall limit under Section 80A(2). The view taken by the assessing officer was a plausible view. If it results in loss of Revenue, it cannot be treated as prejudicial to the interest of Revenue for the purpose of invoking the power under Section 263 of the Act. - Decided in favour of assessee.
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