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2023 (2) TMI 640 - AT - Income TaxDeduction u/s 80HHC - reducing the amount eligible for deduction u/s.80IB from ‘profits & gains of business’ while computing deduction u/s.80HHC - HELD THAT:- Deduction claimed u/s.80IA as well as the provisions of section 80HHC of the Act does not exceed the profits and gains of the undertaking i.e., profit declared under the head ‘profits and gains of business or profession’. In the present case before us, the assessee claim u/s.80IB of the Act was Rs.1,34,38,583/- and the claim of deduction u/s.80HHC of the Act was Rs.62,01,535/- as against total profit and gains declared from business or profession at Rs.2,48,98,022/-. According to us, the issue is squarely covered by the decision of SCM Creations [2008 (3) TMI 223 - MADRAS HIGH COURT] and case of Associated Capsules (P) Ltd. [2011 (1) TMI 787 - BOMBAY HIGH COURT] Respectfully following the same, we allow this issue of assessee’s appeals and direct the AO to recompute the deduction accordingly. Deduction of DEPB u/s.80IB of the Act - We direct the AO to allow the claim of deduction as the amendment brought in by the legislature in the provisions of section 80HHC(3) of the Act by introducing 3rd & 4th proviso is quashed and recompute the deduction accordingly. Hence, this appeal is remitted back to the file of the AO for recomputation of deduction. Therefore, both the appeals of the assessee are allowed in term of the above.
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