Tax Case Appeal allowed, referring substantial questions on deductions to higher courts.

The Tax Case Appeal was allowed, setting aside the orders of the authorities below and restoring the matter to the Assessing Officer to await the decision of the larger Bench of the Supreme Court. The substantial questions of law regarding the deduction under section 80IA and whether business profits should include deductions already allowed under section 80IB were left open as the matters were pending before the Supreme Court and a Full Bench of the High Court. The court's decision aligned with a previous judgment, disposing of the case in the same manner.

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Issues:
The judgment involves the issue of whether the deduction under section 80IB of the Act should be reduced before calculating the eligible deduction under section 80HHC of the Act.

Issue 1: Deduction under section 80IA

The Revenue raised the substantial question of law regarding whether the deduction under section 80IA should be deducted from the profits and gains of business before computing the deduction under Section 80HHC. The matter was considered by the Hon'ble Supreme Court in a previous case, and due to a difference of opinion, the issue was directed to be placed before the Hon'ble Chief Justice of India for reference to a larger Bench. As the matter is pending before the Supreme Court and a Full Bench of the High Court, the Tax Case Appeal was allowed, setting aside the orders of the authorities below and restoring the matter to the file of the Assessing Officer to await the decision of the larger Bench of the Supreme Court. Consequently, the substantial question of law remains open.

Issue 2: Business profits and deductions

Another substantial question of law raised was whether business profits as per Explanation (baa) of Section 80HHC of the Act should include deductions already allowed under Section 80IB. The Tribunal was also questioned on whether the assessee is entitled to simultaneous deductions under Section 80HHC and 80IB on the same profits. The court noted that the matter is pending before the Supreme Court and a Full Bench of the High Court. Following the previous judgment and considering the submissions made by both parties, the Tax Case Appeal was disposed of in the same lines as the previous case. The orders of the authorities below were set aside, and the matter was restored to the file of the Assessing Officer to await the decision of the Larger Bench of the Supreme Court. The substantial question of law raised in this issue was also left open.

Separate Judgment by the Judges:
No separate judgment was delivered by the judges in this case.

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