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2019 (11) TMI 604 - HC - Income TaxMandatory for depreciation to be granted while determining the deduction u/s 80IB - Appellant had not claimed such depreciation - HELD THAT:- There is really no conflict as such in the decisions of this Court in the cases of Grasim Industries Limited [2000 (4) TMI 28 - BOMBAY HIGH COURT] and Indian Rayon Corporation Ltd. vs. CIT [2003 (1) TMI 58 - BOMBAY HIGH COURT] which is in fact the decision followed in Scoop Industries Pvt. Ltd. [2006 (10) TMI 75 - HIGH COURT, BOMBAY] . The Full Bench has held that the ratio laid down in both the cases, is in consonance with the ratio laid down by the Hon'ble Apex Court in the case of Distributors (Baroda) P. Ltd. vs. Union of India [1985 (7) TMI 1 - SUPREME COURT]. Upon analysis of the legal position, the Full Bench concluded that for the purposes of deduction under Chapter VIA, the gross total income has to be computed inter alia by deducting the deductions allowable under Section 30 to 43D of the Act, including depreciation allowable under Section 32 of the Income Tax Act, even though the Assessee may have computed the total income under Chapter IV by disclaiming the current depreciation. This, according to us, affords a full answer to the substantial question of law, now pressed in this Appeal. - Decided in favour of revenue
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