TMI Blog2005 (5) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... "Whether the assessee is entitled to deduction/benefit under section 80-I on the gross total income without excluding/reducing deduction allowed under section 80HH?" - we answer the question in the affirmative and in favour of the assessee and against the Revenue. - - - - - Dated:- 5-5-2005 - Judge(s) : SWATANTER KUMAR., MADAN B. LOKUR JUDGMENT The judgment of the court was delivered by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the gross total income without reducing it by the amount of deduction under section 80HHC. The Revenue then appealed to the Income-tax Appellate Tribunal but by an order dated October 10, 2003, the Tribunal rejected the appeal following J.P. Tobacco Products P. Ltd. [1998] 229 ITR 123 (MP). The Revenue preferred the present appeal in which the following substantial question of law was fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el for the parties, the present appeal was taken up for hearing along with I.T.A. No. 53 (if 2004 wherein a similar question of law has been raised. We have heard learned counsel for the parties and have also gone through the decision of the Madhya Pradesh High Court in J.P. Tobacco [1998] 229 ITR 123. It is quite clear from a reading of the decision rendered by the Madhya Pradesh High Court t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... j) that section 80HH(9) merely fixes the priority of order in which deduction is to be adjusted in the gross total income. A deduction is required to be first made under section 80HH of the Act and only thereafter section 80-I or section 80J should be given effect to. By fixing the priority, section 80HH(9) does not make any provision for recalculating the gross total profit after adjusting the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 80-I from the residual gross total income. It has been brought to our notice that in the connected appeal being I.T.A. No. 53 of 2004 the Assessing Officer has himself accepted this position of law in respect of the subsequent assessment years. Under the circumstances following the decisions of the Madhya Pradesh High Court as well as the Rajasthan High Court, we answer the question in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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