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TMI Blog2011 (5) TMI 837X X X X Extracts X X X X X X X X Extracts X X X X ..... independently on the eligible profits of the appellant and, instead, calculated deduction under section 80HHC on the residual profits after reducing therefrom amount of deduction under section 801B." 2. After hearing both the parties, we find that Mumbai Bench of the Tribunal in ITA no.1901 and 1902 /Mum./2003, vide order dated 18th August 2009, at Para-9, followed the order of another Bench of the Tribunal in the case of Geetanjali Chemicals Pvt. Ltd. in ITA no.1385/Mum./2004 and directed the Assessing Officer to compute independently deduction under sections 80IA and 80HHC of the Income Tax Act, 1961 (for short "the Act"). After such computation, it was directed that the Assessing Officer should ensure that total deduction does not exce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars is dismissed." 4. On plain reading of the above paragraph, it is clear that there is a contradiction in the order of the Commissioner (Appeals). In the first line, the Commissioner (Appeals) says that deductions under section 80IB and 80HHC are to be computed independently, whereas, in the next sentence, he says that the Assessing Officer is right. 5. Hon'ble Jurisdictional High Court in Associated Capsules Pvt. Ltd. v/s DCIT, 2011-TIOL-28-HC-MUM, has held as follows:- "S. 80-IA (9) cannot be interpreted to mean that s. 80-IA deduction has to be reduced for computing s. 80HHC deduction S. 80-IA (9) inserted w. e. f. 1.4.1989 provides that where any amount of profits and gains of an undertaking is claimed and allowed under s. 80-IA f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd not computability of deduction under any other provisions under heading 'C' of Chapter VIA; (ii) The reasonable construction of s. 80IA (9) is that where deduction is allowed u/s 80IA (1), then the deduction computed under other provisions 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." 6. The Assessing Officer is directed to compute the deduction in line with the judgment of Hon'ble Jurisdictional High Court cited supra. 7. In the result, assessee's appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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