TMI Blog1993 (9) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the assessee consisting of capital gains ? 2. Whether, on the facts and in the circumstances of the case, the amount of deduction by way of development rebate should be set off against the income from capital gains in the first instance ?" The assessee is a company. It carries on the business of plying ships. The relevant assessment year is 1973-74, the corresponding previous year being the year ended on March 31, 1973. In the assessment for the above assessment year, the assessee was entitled to some relief under section 80J(1) and also deduction by way of development rebate under section 33 of the Act. The Income-tax Officer allowed relief under section 80J(1) by deducting the amount claimed on that account as a deduction in comput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) 'total income' means the total amount of income referred to in section 5, computed in the manner laid down in this Act;" The scope of total income is defined in section 5 which says that it includes all income from whatever source derived. Section 14 classifies the income under different heads. This classification has been done for the purposes of charge of income-tax and "computation of total income"- It is well-settled that each head of income is a distinct head. Income under that head has to be computed in the manner laid down in the Act for that purpose, and it is the aggregate income under different heads computed in such manner which forms the "total income". In that view of the matter, we find it difficult to understand the log ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wed as deduction from capital gains as claimed by it and not from business income. So far as the claim under section 80J is concerned, the language of the section itself is clear, which provides that : "Where the gross total income of an assessee includes any profits and gains derived from an industrial undertaking or a ship or the business of a hotel, to which this section applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such profits and gains (reduced by the deduction, if any, admissible to the assessee under section 80H). . . ." The language of section 80J is quite clear and unambiguous. It specifically says that deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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