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[2008] 304 ITR 319 (MAD.) HIGH COURT OF MADRAS SCM Creations v. Assistant Commissioner of Income-tax K. RAVIRAJA PANDIAN AND MRS. CHTTRA VENKATARAMAN, JJ. TAX CASE (APPEAL) NOS. 310 AND 311 OF 2008 AND M. P. NO. 242 OF 2008 MARCH 6, 2008 Section 80HHC of the Income-tax Act, 1961 - Deduction - Experters Relief under section 80-IA is not to be deducted from profits and gains of business before computing relief under section 80HHC [A.Y. 2002-03 and 2003-04]. In view of the decision in Dy. CIT v. Chola Textiles (P.) Ltd. [2008] 304 ITR 256 (Mad.), relief under section 80-IA is not to be deducted from profits and gains of business before computing relief under section 80HHC. A. Thiagarajan and S. Ramesh Kumar for the Appellant. N. Muralikumaran for the Respondent. JUDGMENT K. Raviraja Pandian, J.-The two appeals are filed by the assessee relating to the assessment years 2002-03 and 2003-04. The assessee is a partnership firm engaged in the business of manufacture and export of hosiery garments. The issue involved in these two appeals are whether the relief under section 80-IA should be deducted from profits and gains of business before computing relief under section 80HHC. Counsel on either side submits that the issue has to be decided in favour of the assessee, as this court already, by following the decision of [2007] 292 ITR 1 (SC) (Joint CIT v. Mnndideep Engineering and Packaging Industries P. Ltd. Corrected by order of the court (Raviraja Pandian J.) dated April 15, 2008, upon being mentioned by Senior Standing Counsel for the Income-tax Department-Ed.) has decided the issue in favour of the assessee in T. C. No. 344 of 2004, (since reported as Deputy CIT v. Chola Textiles P. Ltd. [2008] 304 ITR 256 (Mad.)) wherein this court has held as follows (page 257 supra) : "5. It is submitted across the Bar by learned counsel appearing for either side that the very issue has been considered and held against the Revenue by the Madhya Pradesh High Court in the case of J.P. Tobacco Products P. Ltd. v. CIT reported in [1998] 229 ITR 123 . It has also been further submitted that the Bombay High Court also has taken the same view in the case of CIT v. Nima Specific Family…

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