TMI Blog2000 (3) TMI 1072X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition of ₹ 1,56,575 under section 40A(3), the learned counsel for the assessee conceded that the issue is covered against the assessee by the decision of the Tribunal in assessee s own case for assessment year 1989-90 in ITA No. 806/Bom/94, order dated 27th December, 1999. Respectfully following the aforementioned decision of the Tribunal, we uphold the disallowance made under section 40A(3). 3. The only other ground of appeal is relating to the computation of deduction under section 80HHC. The Assessing Officer has granted the deduction to the assessee under section 80HHC. He has however adjusted the unabsorbed investment allowance of ₹ 1,98,459 in computing the profits derived from exports in the year under appeal. The CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xport of such goods or merchandise. Deduction under section 80HHC is to be allowed in respect of the profit derived by the assessee from export of such goods or merchandise. Sub-section (3) of section 80HHC provides for computation of the profits derived from exports. Therefore for purposes of computation of profits derived from exports under section 80HHC the unabsorbed investment allowance of earlier years may not be adjusted at this stage. However, we have also to consider the other provisions of the Act. 8. Section 80A provides that in computing the total income of an assessee, there shall be allowed from his gross total income, in accordance with and subject to the provisions of this Chapter, the deductions specified in sections 80C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance, to the extent to which it has not been allowed as aforesaid, shall be carried forward to the following assessment year, and the investment allowance to be allowed for the following assessment year shall be such amount as is sufficient to reduce the total income of the assessee asses- sable for that assessment year, computed in the manner aforesaid, to nil, and the balance of the investment allowance, if any, still outstanding shall be carried forward to the following assessment year and so on, so, however, that no portion of the investment allowance shall be carried forward for more than eight assessment years immediately succeeding the assessment year relevant to the previous year in which the ship or aircraft was acquired or t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he final analysis, it is observed that in computing the deduction under section 80HHC the unabsorbed investment allowance of earlier years is not to be taken into account in working out the profits derived from exports. However, the said allowance is to be adjusted in working out the gross total income computed without deductions under Chapter VI-A and that the deduction under section 80HHC shall however not exceed the gross total income. 12. In this case the gross total income of the assessee after adjustment of carried forward unabsorbed investment allowance is ₹ 15,31,608. The profits derived from exports for the purposes of section 80HHC have been worked out at ₹ 14,26,306. Since the gross total income worked after adjust ..... X X X X Extracts X X X X X X X X Extracts X X X X
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