TMI Blog2010 (2) TMI 793X X X X Extracts X X X X X X X X Extracts X X X X ..... year 2001-02. 2. The issue, in brief, were the claim of deduction u/s 80HHC r.w.s.80-IB of the Act. The assessee's appeal was dismissed by this Bench vide ITA NO.704/B/2008 dated: 30.10.2009 by following the finding of the Hon'ble Tribunal, Delhi Special Bench and for the reasons recorded therein. 3. Aggrieved, the assessee company has now come up with the present Misc. Petition on the ground that the order of the Hon'ble Delhi Special Bench reported in (2009) 315 ITR (AT) 401 supports the contentions of the assessee company and, therefore, the order passed by this Bench suffers from mistake, rectifiable within the meaning of s.254(2) of the Act. 3.1. After due consideration of the assessee company's plea, the Misc. Petition of the assessee Company is admitted and the Registry was directed to take the Misc. Petition on record and list the same for adjudication. 4. During the course of hearing, the submissions made by the either party were duly considered. Brief: I. (i) The issues involved were the claim of deduction u/s 80HHC r.w.s. 80-IB of the Act. The assessee had three units - one at Pondicherry, Kumbalgod and at Hosur Unit and applicable deductions und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and in that event, the question of reducing deduction allowed u/s. 80-IA or 80-IB would not arise. Shri Vohra had placed reliance on the decision of the Hon'ble Bombay High Court in the case of Godrej Agrovet Ltd. vs. ACIT (290 ITR 252). As far as this limited issue is concerned, we are inclined to agree with the submission advanced by Shri Vohra. The restrictions contained in section 80-IA or 80-IB not to allow repeated deductions are applicable to same profit. This is more than clear from use of word 'such profit' in section 80-IA/80-IB. In other words, there has to be identity of profits on which deduction under more than one provision under Chapter VI-A is claimed by the assessee. The provisions are applicable where on the profit of the undertaking or enterprise, deduction is claimed under section 80-IA or 80-IB and then on the same profit of the undertaking, deduction under other provisions like 80HHC is claimed. In such cases, the restriction contained in the above provisions would apply. If the profits are derived from a separate undertaking, the restriction contained in the above provision would not be applicable." On perusing the case Godrej Agrovet Ltd. vs. ACIT (290 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned A.R., we are of the considered view that our earlier finding does not suffer from any infirmity which requires to be cured. We, therefore, reject the assessee's claim on this count and that our earlier decision doesn't require any modification and, therefore, reconfirmed. 5.1 With regard to the other issue, the grievance of the assessee is that during the course of argument, reliance was placed on various case laws, notably, in the case of Bush Boake Allen (India) Ltd. vs. ACIT reported in (2005) 273 ITR 152 (Madras) which has not been considered by this Bench while deciding the issue in the original appeal. The submission of the assessee is that in the case of Bush Boake Allen, the issue was with regard to the apportionment of expenditure and that the matter was remitted back on the file of the Tribunal with a finding that there were no R and D expenses at one of the Units for which the R and D was carried out at the other unit with regard to the product manufactured at the first unit. It was further observed that the Tribunal shall determine as to whether there was any R and D undertaken with regard to the product manufactured in that particular unit, with a further o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activities of research and development to Chittoor unit merely on the presumption that products manufactured at Chittoor also had the benefit of the research made at Chennai by the Research and Development Department is not proper. There was a presumption made that any technology about new flavours and essence will automatically be utilized in Chittoor unit also without examining as to whether the research and development actually carried out at Madras was of use for the unit at Chittoor, as the assessee has other manufacturing units besides the one at Chittoor. For the purpose of determining as to whether at all there was research and development undertaken regarding the product that is manufactured in Chittoor unit, the matter is to be inquired into. If it did pertain to the product manufactured at Chittoor, only then the allocation of the expense to Chittoor unit would be justified. 5.2 We have duly considered the ruling of the Hon'ble Court cited supra. With due respects, on a close perusal of the said finding, we find that the Hon'ble Court had ruled that - (at the cost of repetition) "There was a presumption made that any technology about new flavours and essence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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