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2014 (7) TMI 520 - GUJARAT HIGH COURTEligibility for deduction u/s 80HHC of the Act – Premium purchased to be treated as cash assistance u/s 28(iiib) of the Act – Held that:- The judgment delivered by ITAT does not indicate that the Fifth proviso inserted by Taxation Law (Amendment) Act, 2005, with retrospective effect from April 1, 1992 was noticed by it – the Tribunal relied upon its earlier decision in the case of P. NAVINKUMAR & CO. Versus INCOME TAX OFFICER [1998 (8) TMI 103 - ITAT AHMEDABAD-A] - the matter deserves to be remitted to ITAT for its fresh consideration for the opinion in the light of the Fifth proviso referred to above, as also the amendment made under the Fifth Act 2005 - The matter is accordingly remitted to the ITAT for its fresh consideration - Decided in favour of Assessee. Business of cutting and polishing of rough diamonds - Whether the Tribunal was right in holding that for the purpose of working out deduction u/s. 80HHC, clause (a) of section 80HHC becomes applicable instead of clause (b) as the assessee was engaged in the business of cutting and polishing of rough diamonds which are imported from abroad and then selling out cut and polished diamonds in trading of polished diamonds and the percentage of trading of polished diamonds is more than 50% of the total export sales – Held that:- The decision in Gem Granites v. Commissioner of Income-Tax [2004 (11) TMI 13 - SUPREME Court] followed - in view of the aforesaid 1984 Circular, cut and polished diamonds shall qualify for deduction under sec. 80HHC of the Income-tax Act - polished and processed granite did not fall within the meaning of word "minerals" in 80HHC(2)(b) as it stood before 1991- Decided against Revenue.
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