TMI Blog2005 (10) TMI 440X X X X Extracts X X X X X X X X Extracts X X X X ..... A of the Act. The profit of the business was arrived at thereafter. The assessee is also eligible for deduction under section 80HHC. While computing profit of the business eligible for deduction under section 80HHC, profit eligible for exemption under section 10A was reduced. While adopting the export turnover, it also included turnover of the unit eligible for exemption under section 10A. The Assessing Officer held that profit of EHTP unit, the income from which it is exempt under section 10A, the export turnover of said unit could not be included in the export turnover for the purpose of computing deduction under section 80HHC. It is pertinent to note that the export turnover on F.O.B. basis is Rs. 15,11,77,684 as computed by assessee. At ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order. Apart from relying upon the decision of Hon ble Supreme Court in Escorts Ltd. s case ( supra ), he further relied upon the decision of Hon ble Gauhati High Court in the case of CIT v. Sudarshan Plywood Industries Ltd. [2000] 245 ITR 751. 3. We have carefully considered the relevant facts and the arguments advanced. The important question to be determined is whether while computing deduction under section 80HHC, turnover of units claiming exemption under section 10A is also to be included or not. As per section 80AB of the Act, deduction under section 80HHC in Chapter VIA is to be granted only in respect of income of the nature specified in section 80HHC, which is included in the gross total income of the assessee. Admitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... words, in the absence of clear statutory indication to the contrary, the statute should not be read so as to permit an assessee two deductions-both under section 10(2)( vi ) and section 10(2)( xiv ) of the 1922 Act or both under section 32(1)( ii ) and section 35(1)( iv ) of the 1961 Act. The use of the words "in respect of the same previous year" in clause ( d ) of the proviso to section 10(2)( xiv ) of the 1922 Act and section 35(2)( iv ) of the 1961 Act is to indicate that there is a basic scheme, unspoken but clearly underlying the Acts, that the two allowances cannot be and are not intended to be granted in respect of the same asset or expenditure. These provisions mandate that the assessee should, in a case where the assessee qualif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e chargeable to tax under the head "Profits and gains of business or profession". Though the above case laws are not directly on the subject, it provides that identical amount cannot be claimed as deduction under two different sections unless specifically provided for. Since we have held that profits of the export turnover of EHTP unit does not form part of gross total income, such turnover cannot be included while computing export turnover for the purpose of computing deduction under section 80HHC also. 3.3 Hon ble Supreme Court in the case of IPCA Laboratory Ltd. v. Dy. CIT [2004] 266 ITR 521 held that section 80AB governs section 80HHC also. 3.4 The decision of ITAT, Delhi bench in Jindal Exports (P.) Ltd. v. Asstt. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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