TMI Blog2008 (8) TMI 202X X X X Extracts X X X X X X X X Extracts X X X X ..... h Sethi for the applicant. Akshay Bhan for the respondent. JUDGMENT The judgment of the court was delivered by RAJESH BINDAL J.- The Revenue is in appeal before this court against the order dated August 8, 1989, passed by the Income-tax Appellate Tribunal, Chandigarh Bench (for short, "the Tribunal") in I. T. A. No. 614/Chandi/1984, for the assessment year 1978-79, raising the following substantial question of law: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in allowing deduction under section 80J and investment allowance of the current year before allowing depreciation of the current year?" 2. A perusal of the order passed by the learned Commissioner of Income- t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal in appeal by the Revenue. 4. Learned counsel for the Revenue submitted that the view expressed by the Tribunal is totally contrary to the provisions of law as sections 80AB and 80B(5) of the Act clearly provide for the manner in which the deduction under Chapter VI-A are to be calculated. He submitted that deduction under section 80J of the Act is to be calculated on the net income after grant of all other deductions under the Act except provided under Chapter VI-A of the Act of which section 80J is a part. 5. On the other hand, learned counsel for the assessee submitted that the Tribunal in the present case had followed its earlier decision in the case of Mahavir Spinning Mills Ltd. and the Revenue having not disclosed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt in Motilal Pesticides (I.) Pvt. Ltd. v. CIT [2000] 243 ITR 26, while dealing with the issue as to whether an assessee was entitled to deduction under section 80HH of the Act in the gross total income or the net income as computed, after taking into consideration the provisions of sections 80AA and 80AB of the Act, opined that the provisions of section 80AB of the Act are declaratory in nature and the deduction under section 80HH of the Act is admissible from the net income and not gross income. 10. The Bombay High Court in Grasim Industries Ltd. v. Asst. CIT [2000] 245 ITR 677, while holding section 80AB of the Act, inserted with effect from April 1, 1981, by the Finance (No. 2) Act, 1980, to be declaratory in nature, held ..... X X X X Extracts X X X X X X X X Extracts X X X X
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