https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=458795 https://www.taxtmi.com/caselaws?id=458795 Computation of deduction u/s 80HHC - exclude excise duty from the total turnover while computing deduction - HELD THAT:- First question is already decided by this Court in [ 2014 (3) TMI 934 - GUJARAT HIGH COURT] as held against the Revenue and it is held that the learned Tribunal has not committed any error in holding that the excise duty is excise duty is to be excluded for the purpose of computation of deduction u/s. 80HHC. Allowance of deduction u/s 80IB and 80HHC independently - This Court in [ 2014 (4) TMI 676 - GUJARAT HIGH COURT] we may peruse more closely the language used in sub section (9) of section 80IA. In plain terms it provides that where any amount of profits and gains of an undertaking or enterprise in case of an assessee is claimed and allowed under section 80IA, deduction to the extent of such profits and gains shall not be allowed under any other provisions of this Chapter under the heading `C. Deductions in respect of certain incomes , and in no case exceed the profits of gains of such eligible business of the undertaking or enterprise. It can thus be seen that sub section (9) is divided into two clear parts. First part pertains to non allowability of deduction under any other provision contained in Part C of Chapter VI to the extent of profits and gains of an enterprise or undertaking with respect to which deduction under section 80IA is claimed and allowed. The second part provides that in any case, such deduction shall not exceed the profits and gains of eligible business of an undertaking or enterprise. If we accept the interpretation of the assessee that only effect of sub section (9) of section 80IA would be to limit the maximum permissible deduction under section 80HHC to the profits and gains of the eligible business, we would be completely ignoring the first part of the sub section. Sub section (9) of section 80IA was aimed at restricting the successive claims of deduction of the same profit or gain under different provisions contained in sub chapter C of Chapter VI of the Act. This provision, therefore, necessarily impacts other deduction provisions including section 80HHC of the Act. Nothing contained in section 80HHC suggests that the deduction provided therein was immune from any outside influence or that the provision was impregnable by any other statute or enactment. Accepting any such theory would lead to incongruous results. Even the assessee concedes that sub section (9) of section 80IA would operate as to limiting the combined deductions to a maximum of the profits and gains from an eligible business of the undertaking or enterprise. If section 80HHC contained a protective shell making it immune from any outside influence, even this effect of sub section (9) of section 80IA could not be applied. This would completely render the provisions of sub section (9) of section 80IA redundant and meaningless. We are unable to follow the line of logic adopted in case of Associated Capsules P. Ltd. [ 2011 (1) TMI 787 - BOMBAY HIGH COURT] that section 80IA(9) of the Act in the context of section 80HHC would operate not at the stage of computation but at the stage of allowing the deduction. - Decided in favour of revenue. Case-Laws Income Tax Wed, 26 Mar 2014 00:00:00 +0530