TMI Blog1996 (8) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... lpur Bench, Jabalpur, has referred at the instance of the assessee-company on an application being made under section 256(1) of the Income-tax Act, 1961, the following question of law arising out of the order dated July 16, 1992, in I. T. A. No. 246/Jab of 1987 and cross objection No. 46/Jab. of 1987 for the assessment year 1984-85 for the opinion of this court : " Whether the Tribunal is right ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver, reduced the amount of Rs. 1,27,818 allowed under section 80HH from the profits and gains from the industrial undertakings of the assessee. The assessee, in his cross-objection before the Tribunal, claimed that it was entitled to deduction under section 80-I on the gross total income but the Tribunal dismissed the cross-objection. Hence, the above question has been referred for the opinion of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 80HH are required to be subtracted from the profits and gains of the industrial undertaking and then allowance is to be given at the rates provided in section 80-I or 80J on the amount of gross total income so reduced. Learned counsel for the Department has, however, argued that the purpose of sub-section (9) of section 80HH is apparently to first allow deductions admissible under section 80H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 80HH of the Act by the Direct Taxes (Amendment) Act, 1974, with effect from April 1, 1974, was inserted. Section 80-I was inserted in its present form by the Finance (No. 2) Act, 1980, with effect from April 1, 1981, and by the same Finance (No. 2) Act, section 80HH (9) was amended and the words "section 80-I or" were inserted to make the said provision applicable to section 80-I as we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 income and not on the income reduced by the amount allowed under section 80HH. In the result, we find that the Tribunal was not right in holding that deduction under section 80-I is to be allowed only on the balance of the income after ded ..... X X X X Extracts X X X X X X X X Extracts X X X X
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