TMI Blog2004 (7) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... fter deduction under section 80HHC. There is no justification to reduce the amount of gross total income for allowing deduction under section 80-IA – revenue’s appeal dismissed - - - - - Dated:- 21-7-2004 - Judge(s) : Y. R. MEENA., SHASHI KANT SHARMA. JUDGMENT Heard learned counsel for the parties and perused the impugned orders. This appeal has been admitted in terms of the following questions: "(i) Whether the learned Income-tax Appellate Tribunal was right in its wisdom to hold that deduction under section 80-IA is to be allowed on the gross total income of Rs. 1,25,98,790, even when deduction under section 80HHC was already claimed and allowed at Rs. 81,57,935 on the said GTI? (ii) Whether the learned Income-tax Appellate Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act is allowed, thereafter deduction under section 80-IA can be allowed only on the balance amount left. He further submits that even the amendment has been made to this effect in 1998 by insertion of sub-section (9A) after sub-section (9) of section 80-IA by the Finance (No. 2) Act, 1998, with effect from April 1, 1999, therefore, deduction under section 80-IA should be allowed on the balance amount. On the other hand, Shri Anant Kasliwal, learned counsel for the assessee (respondent), submits that similar issue has been considered by the Madhya Pradesh High Court. He placed reliance on the decision of the Madhya Pradesh High Court in J.P. Tobacco Products P. Ltd. v. CIT [1998] 229 ITR 123. While considering the issue, whether both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, be seen that when section 80J already existed in sub-section (9) of section 80HH, an amendment was made in section 80J in the year 1974 but no such provision was made in so far as section 80-I was concerned. This clearly contra-indicates that sub-section (9) of section 80HH by itself meant that deduction allowed under section 80HH is to be reduced from the gross total income for granting the benefit of section 80J and, for that matter, of section 80-I. It was provided in section 80J itself by later amendment while no such provision was made in section 80-I even though inserted on a later date. The provision of law is, therefore, clear that in so far as the benefit of section 80-I is concerned, it has to be granted on the gross total inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 80-IA should be allowed only on the balance income, i.e., the amount remained after deduction under section 80HHC. When there is no such provision or intention of the Legislature to allow deduction under section 80-IA on the balance amount, there is no justification to allow deduction under section 80-IA only on the balance amount i.e., the amount remained after deduction under section 80HHC of the Act. In the absence of such an intention, deduction under section 80-IA of the Act should also be allowed on the gross total amount, as the words used in sub-section (1) of section 80A of the Act for deduction are "gross total income" and not on the balance amount after any deduction made under any section. Considering the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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