https://www.taxtmi.com/caselaws?id=11904 In computing profits and gains derived from a newly established undertaking for deduction under s. 80HH, the issue was whether current depreciation must be deducted. The HC held that Chapter VI-A operates as an independent code: the "profits and gains" eligible for special deduction must be computed in accordance with ss. 29-43A, which necessarily includes depreciation under s. 32, and the assessee cannot disclaim depreciation to inflate eligible profits; the s. 32(2) analogy applicable in normal computation does not override Chapter VI-A computation. Consequently, depreciation had to be deducted while computing eligible profits, and the assessee's claim to s. 80HH deduction without considering current depreciation was rejected, answering the issue in favour of the revenue. en-us Wed, 22 Jan 2003 00:00:00 +0530 Fri, 26 Dec 2025 15:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11904 In computing profits and gains derived from a newly established undertaking for deduction under s. 80HH, the issue was whether current depreciation must be deducted. The HC held that Chapter VI-A operates as an independent code: the "profits and gains" eligible for special deduction must be computed in accordance with ss. 29-43A, which necessarily includes depreciation under s. 32, and the assessee cannot disclaim depreciation to inflate eligible profits; the s. 32(2) analogy applicable in normal computation does not override Chapter VI-A computation. Consequently, depreciation had to be deducted while computing eligible profits, and the assessee's claim to s. 80HH deduction without considering current depreciation was rejected, answering the issue in favour of the revenue. Case-Laws Income Tax Wed, 22 Jan 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11904