Revisionary jurisdiction and Chapter VI-A deductions: section 80-IA(9) limits double deduction but does not create a total bar.

Section 263 revision could not be used to withdraw a section 80HHC deduction that had already been decided in the assessee's favour on appeal, because the appellate decision attracted merger and the issue was no longer open to revision. Section 80-IA(9), as applied through section 80-IB(13), was treated as a limit on double deduction of the same profits beyond the eligible income, not as a complete bar on claiming another otherwise allowable Chapter VI-A deduction. The provision was contrasted with section 80-IC(5), which uses express prohibitory language where Parliament intends a total restriction. The revision was therefore unsustainable, subject to the cap that deductions on the same eligible profits cannot exceed 100 per cent.

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Issues: Whether the Commissioner was justified in exercising revisionary jurisdiction under section 263 to withdraw the deduction under section 80HHC and to treat the assessment as erroneous and prejudicial to the interests of Revenue.

Analysis: The deduction under section 80HHC had already been the subject of appellate adjudication and stood decided in favour of the assessee, so the revisional authority could not reopen that aspect because the theory of merger applied. On the merits, section 80-IA(9), as made applicable to section 80-IB by section 80-IB(13), was held to be a restriction against double deduction of the same profits beyond 100 per cent of the eligible profits, not a blanket prohibition against claiming another otherwise allowable deduction under Chapter VI-A. The language of section 80-IC(5) was contrasted to show that, where Parliament intended a complete bar, it used express prohibitory wording. The Board circular and legislative history supported the view that the provision was meant only to prevent excessive aggregate deduction on the same profits.

Conclusion: The revision under section 263 was not sustainable, and the assessee was entitled to retain the deduction under section 80HHC in addition to section 80-IB, subject to the overall cap that deductions on the same eligible profits must not exceed 100 per cent.

Ratio Decidendi: Section 80-IA(9) restricts multiple deductions only to the extent necessary to prevent deduction beyond the eligible profits, and it does not create a total embargo on another permissible Chapter VI-A deduction where the same income is not deducted more than once in excess of the profits.

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