TMI Blog2014 (5) TMI 987X X X X Extracts X X X X X X X X Extracts X X X X ..... – thus, the assessee is eligible for deduction u/s 80HHC of the Act – Decided against Revenue. - I.T.A. No. 5853/Mum/2011 - - - Dated:- 18-7-2012 - Shri Dinesh Kumar Agarwal, JM And Shri B. Ramakotaiah,AM,JJ. For the Appellant : Shri B. Jaya Kumar For the Respondent : Shri Ashok Suthar ORDER Per Dinesh Kumar Agarwal, J.M. This appeal preferred by the Revenue is directed against the order dated 25-5-2011 passed by the ld. CIT(A)- 18, Mumbai for the assessment year 2000- 01. 2. Briefly stated facts of the case are that the assessee company is engaged in the business of trading, manufacturing of bio-medical equipments and diagnostic reagents and exports etc. In this case, the assessment u/s 143(3) of the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in directing the Assessing Officer to allow deduction u/s 80HHC without reducing the deduction allowed with clause (9) of Sec. 80IA of the Income Tax Act, 1961, the deduction u/s 80HHC is allowable only on the balance profit after allowing deduction u/s 80IA. 4. At the time of hearing the ld. D.R. supports the order of the A.O. 5. On the other hand, the ld. counsel for the assessee submits that the issue stands covered in favour of the assessee by the decision of the Hon ble jurisdictional High Court in the case of Associated Capsules Pvt. Ltd. vs. DCIT (2011) 332 ITR 42 (Bom) and the decision of the Tribunal in the case of Systematic Exports vs. ACIT in I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 80-IA(9) was inserted with a view to affect computation of deduction under any other provisions under heading C of Chapter VI-A. Since section 80-IA(9) uses the words shall not be allowed , the section seeks to restrict the allowance of deduction and not the computation of deduction under any other sections under heading C of Chapter VI-A of the Act. Therefore the reasonable construction of section 80-IA(9) would be that where the deduction is allowed under section 80- IA(1), then the deduction computed under other provisions under heading C of Chapter VI-A have to be restricted to the profits of the business that remain after excluding the profits allowed as deduction under section 80-IA, so that the total deduction allowed under the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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