Court rules in favor of assessee on deduction calculation under Income-tax Act

The High Court of Madhya Pradesh ruled in favor of the assessee regarding deduction under section 36(1)(viii) of the Income-tax Act. The deduction should be calculated on the assessee's total income before other deductions. Each party will bear their own costs.

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The High Court of Madhya Pradesh ruled in favor of the assessee in a case regarding deduction permissible under section 36(1)(viii) of the Income-tax Act. The Tribunal was right in holding that the deduction should be calculated on the assessee's total income before the deduction allowable under the Act. Each party will bear their own costs. (Case citation: 1989 (2) TMI 63 - Madhya Pradesh High Court)

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