The assessee; Deduction u/s 80HHC — Reduction of profits and gains owing to deduction granted u/s 80IB — Allowability — Whether CIT(A) was justified interpreting the provisions of s 80-IB so as to reduce the profits and gains while working out deduction u/s 80HHC, by an amount of deduction granted/allowed u/s 80IB — Held, Issue squarely covered in favour of assessee by the decision of Hon’ble Bombay High Court in Associated Capsules P Ltd — Assessee’s appeal allowed.
Held: Assessee’s appeal allowed.
Issue is squarely covered in favour of the assessee by the decision of the Hon’ble Bombay High Court in the case of Associated Capsules P Ltd 197 taxman 84. The CIT(A) was justified interpreting the provisions of s 80IB so as to reduce the profits and gains while working out deduction u/s 80HHC, by an amount of deduction granted/allowed u/s 80IB. Associated Capsules P Ltd 197 taxman 84, relied on. (Para 14)
Ratio decidendi:
It is justified to interpret provisions of s 80-IB so as to reduce the profits and gains while working out deduction u/s 80HHC.
Cases referred:
Pannalal Narottam Das 67 ITR 667
Legislation referred: Income-tax Act, 1961, s 80HHC, 14A, 234C, 37.
Counsel appeared:
C N Vaze and Bhadresh Doshi for the assessee
Perminder for the Revenue.