2007 (11) TMI 122

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Appellate Tribunal ( Tribunal ) was correct in law in holding that the Assessee is entitled to a deduction under Section 80HHC of the Income Tax Act, 1961 before adjusting unabsorbed business and unabsorbed depreciation." 3. Learned counsel for the Revenue has drawn our attention to Section 80A of the Income Tax Act, 1961 (for "short Act" ). This Section occurs in Chapter VI-A of the Act and the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of this Act, before making any deduction under this Chapter." 6.  A plain reading of Section 80B (5) of the Act shows that first the gross total income has to be computed and thereafter deductions, if any, under Chapter VI-A of the Act, may be made. 7.  It follows, therefore, that on a combined reading of Section 80A and Section 80B(5) of the Act, the gross total income of an assessee .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... isions of this section, be allowed, in computing the total income of the assessee, a deduction to the extent of profits, referred to in sub-section (1B), derived by the assessee from the export of such goods or merchandise :" 10.  From a reading of Section 80HHC(1) of the Act, it appears that for computing the total income of the Assessee, a deduction to the extent of profits referred to in .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... that case, the Supreme Court reversed the decision of the High Court and held that in view of Section 80B(5) of the Act it is necessary for the purpose of making a deduction under Section 80P of the Act to determine the gross total income in accordance with other provisions of the Act. In other words, the gross total income must be determined by setting off against the income the business losses .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 4 (SC) 14. We are of the opinion that by relying upon Gogineni Tobacco Limited,[1999] 238 ITR970, the Tribunal came to a wrong conclusion particularly since the view of the Andhra Pradesh High Court is in conflict with the view expressed by the Supreme Court. 15. There is no doubt that all of us are bound by the decision of the Supreme Court and, therefore, in view thereof, we answer the questio .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X