Law:

Section:

Section 80HHC, read with section 80-IA, of the Income-tax Act, 1961 - Deductions - Exporters - Whether for purpose of computing deduction under section 80HHC, deduction already allowed under section 80-IA has to be reduced - Held, yes FACTS In the instant cases, the question for determination was as to whether after insertion of sub-section (9) in section 80-IA and sub-section (13) in section 80-IB with effect from 1-4-1999, deduction allowed under section 80-IA is to be reduced from the gross profits for the purpose of computing deduction under section 80HHC. The contention of the assessees was that the aforesaid insertion has not made any change insofar as the manner of computation was concerned and deduction is to be made under various provisions of Part-C in Chapter VIA. According to them, the only thrust of this provision is that the total deduction to be allowed under various provisions in Part-C is not to exceed the profits and gains. The revenue, on the other hand, insisted that introduction of sub-section (9) in section 80-IA has made a clear departure and legislative intent is manifest in this provision, namely, once the deduction is claimed under section 80-IA in respect of certain amount of profits and gains, to the extent of such profits and gains, deduction shall not be allowed and this has to be reduced while computing deduction under other provisions, namely, section 80HHC. That controversy received attention at the hands of various Benches of the Tribunal. In view of conflicting opinions, a three Member Special Bench of Chennai Tribunal was constituted in the case of Asstt. CIT v. Rogini Garments [2007] 108 ITD 49 . In that case, the Special Bench, essentially being influenced by the literal interpretation of the provisions of section 80-IA(9), held that the relief under section 80-IA should be deducted from the profits and gains of business before computing relief under section 80HHC. Subsequent to the said decision, the issue came up for consideration before the Madras High Court in the case of SCM Creations v. Asstt. CIT [2008] 304 ITR 319 wherein a similar issue as involved before the Special Bench of Chennai, Tribunal, was considered and…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492