TMI Blog2011 (5) TMI 837X X X X Extracts X X X X X X X X Extracts X X X X ..... visions under heading ‘C’ of Chapter VIA has to be restricted to the profits of the business that remains after excluding the profits allowed as deductions u/s 80IA, so that the total deduction allowed under the heading ‘C’ of Chapter VIA does not exceed the profits of business. - Assessing Officer is directed to compute the deduction in line with the judgment of Hon’ble Jurisdictional High Court cited, assessee’s appeal is allowed - ITA no. 3006/Mum./2010 - - - Dated:- 19-5-2011 - ORDER PER J. SUDHAKAR REDDY, A.M. This appeal preferred by the assessee, is directed against the impugned order dated 21stJanuary 2010, passed by the Commissioner (Appeals)-XXXI, Mumbai, for assessment year 2000-01, on the following ground:- On the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowed on the remaining profit and gains of the industrial undertaking. The Hon ble ITAT has nowhere held that the deduction under section 80HHC is to be allowed on the profit of the business including deduction under section 80IB. On the other hand, as noted above the Hon ble ITAT has clearly held that deduction under section 80HHC is to be allowed on the remaining profit and gains of the undertaking i.e., on the profit of the business reduced by the deduction allowed under section 80IB. Therefore, on account of these specific directions of the Hon ble ITAT, I find that there is no mistake or wrong calculation of deduction under section 80IB and 80HHC on the part of the A.O. The claim of the appellant as mentioned above is misplaced. On th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D 107 (Del) (SB), Great Eastern Exports (Del) Olam Exports (India) Ltd 184 TM 373 (Ker) deciding in favour of the assessee: (i) The argument of the Revenue that s. 80IA (9) mandates that the deduction u/s 80HHC has to be computed by reducing the amount of profits and gains allowed as deduction u/s 80IA(1) is not acceptable. S. 80IA (9) uses the words shall not be allowed and not the words shall not qualify or shall not be allowed in computing deduction . Accordingly,the restriction in s. 80IA(9) relates to the allowance of deduction and not computation of deduction. The manner of computation of deduction u/s 80HHC (1) is set out in s. 80HHC(3). S. 80IA (9) does not disturb the mechanism of computing the deduction provided u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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