https://www.taxtmi.com/caselaws?id=20322 Deduction under section 80HH was required to be computed on net income of the industrial undertaking, not on gross profit, because section 80B(5) defines gross total income as income computed under the Act before Chapter VI-A deductions. The earlier broad approach in Cloth Traders was no longer applicable after the Constitution Bench in Distributors (Baroda), and the same net-income principle was reiterated in P. K. Jhaveri. Cambay Electric Supply was treated as supporting the view that similar deduction provisions operate on a computed net figure rather than gross receipts. The issue was therefore resolved in favour of the Revenue. en-us Tue, 17 Aug 1993 00:00:00 +0530 Fri, 13 Nov 2009 12:50:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20322 Deduction under section 80HH was required to be computed on net income of the industrial undertaking, not on gross profit, because section 80B(5) defines gross total income as income computed under the Act before Chapter VI-A deductions. The earlier broad approach in Cloth Traders was no longer applicable after the Constitution Bench in Distributors (Baroda), and the same net-income principle was reiterated in P. K. Jhaveri. Cambay Electric Supply was treated as supporting the view that similar deduction provisions operate on a computed net figure rather than gross receipts. The issue was therefore resolved in favour of the Revenue. Case-Laws Income Tax Tue, 17 Aug 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20322