TMI Blog2005 (6) TMI 480X X X X Extracts X X X X X X X X Extracts X X X X ..... de after the due dates. Further it was held that since the assessee was allowed deduction under section 80-IB, therefore deduction under section 80HHC cannot be allowed. The Commissioner placed reliance on the provisions of section 80-IA(9) read with section 80-IB(13) of the Income-tax Act. According to the Commissioner, in case deduction under section 80-IB is allowed, no deduction under section 80HHC can be allowed. 4. While giving effect to the order passed by the Commissioner under section 263, the Assessing Officer verified the payments made by the assessee in respect of payment towards Provident Fund and found that there was no delay in making payments. Hence, no disallowance under section 43B was made. However, deduction under section 80HHC was withdrawn as directed by the Commissioner under section 263 order. 5. Learned counsel appearing on behalf of assessee submitted before us that apparently the order under section 263 was passed without any application of the provisions of the Act. While giving effect to the order under section 263 it was found by the Assessing Officer that there was no delay in making payments in respect of instalments of employers and employe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hotels. The provision of the Bill as mentioned in the notes on clauses has been annexed at page 28 of the paper book. It was submitted that under the aforesaid background the object of insertion of section 80-IA(9) was to prevent deduction of more than 100 per cent of profits and gains of the undertakings by claiming multiple deductions under different sections in Chapter VI-A. Therefore, both the reliefs under section 80-IA has to be considered together. Accordingly, it was submitted that the Commissioner was not justified in exercising jurisdiction under section 263 of the Act. 7. We have heard both the sides and perused the materials on record. It appears that the CIT has revised the assessment order under section 263, on two points. Firstly there were late payments of PF dues which was found by the Assessing Officer while giving effect to section 263 order as not correct as payments were made in time. According to the CIT, the second point is that the assessee cannot be allowed deduction under section 80HHC because he was allowed deduction under section 80-IB of the Act. We have already noticed that so far as the allowability of the deduction under section 80HHC is concerne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply to the assessment year 1991-92 and subsequent years." 10. Further, the Memorandum explaining the provisions of the Finance Bill is placed at page 29 of the paper book and relevant portion of the Memorandum is set out below : "Amendment in section 80-IA and section 80HHC to prevent double deduction of same profit. Under the provisions of Chapter VI-A of the Income-tax Act, various deductions from the profits and gains are allowed to specified assessee s subject to fulfilling certain requirements specified under the relevant sections. The total deduction under Chapter VI-A of the Income-tax Act are restricted to the gross total income in respect of the assessee as a whole. However, in certain cases it was noticed that certain assessees claimed more than 100 per cent deduction on such profits and gains of the same undertaking when they were entitled to deductions under more than one section of Chapter VI-A. With a view to providing suitable statutory safeguard in the Income-tax Act to prevent taxpayer from taking undue advantage of existing provisions of the Act by claiming repeated deductions in respect of the same amount of eligible income, even in cases where it excee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chapter VI-A or in section 10A or section 10B, in relation to the profits and gains of the undertaking or enterprise." 15. As is clear, the language used by the Legislature in section 80-IC(5) is completely different from the language used in section 80-IA(9). Section 80-IC(5) totally prohibits allowance of any other deduction under Chapter VI-A and section 10A and section 10B, once deduction under section 80-IC is given. The language employed, to totally prohibit other deduc- tions, is plain and simple and to make matters all the more clear, a non obstante clause is also used. 16. While taking this view, we find support from the Board Circular No. 772 dated 23-12-1998 (235 ITR St. 35 at page 63). We find that even the Board has understood the scope of section 80-IA(9) so as to discharge claim of more than 100 per cent deduction of profits and gains of undertaking by inserting different incentive provisions of Chapter VI-A. The relevant para of the Board Circular is reproduced below : "35. Amendment in section 80HHD and section 80-IA to prevent double deduction of same profit : 35.1 Under the provisions of Chapter VI-A of the Income-tax Act, various deductions from th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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