2007 (5) TMI 139

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hat deduction under section 80 should be allowed without deducting the amount of deduction permissible under section 32AB of the Act ?" Question No. 1 2 Under section 80-I of the Income-tax Act, 1961, a deduction of 20 percent is given from the gross total income of an assessee, if the income includes any profits or gains derived from an industrial undertaking. 3 Income derived from items other than industrial undertaking, which are mentioned in section 80-I is not relevant for this case. 4 In the case before us, the assessee derived certain income (a) which was derived from an industrial undertaking, and (b) to which section 80-I applied by virtue of sub-section (2) thereof. 5 That income (or rather part of that income) derived from t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the case of Indian Aluminium Co. Ltd. v. CIT [1980] 122 ITR 660 which supports the contention of the Department and also supports the view expressed by us above. 11 As against this, learned counsel for the assessee placed reliance upon a  decision of the Nagpur Bench of the Bombay High Court in the case of CIT v. Nagpur Engineering Co. Ltd. [2000] 245 ITR 806. That decision does not give its own reasoning but merely relies upon another decision in the case of CIT v. Paramount Premises P. Ltd. [1991] 190 ITR 259 (Bom). In Paramount Premises P. Ltd. [1991] 190 ITR 259 (Bom), the question was whether "interest income" is "business income" or not. The question in Paramount Premises P. Ltd. [1991] 190 ITR 259 (Bom) was not whether interest....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ires consideration whether the deduction under section 80-I should be allowed on the "gross total income" computed without deductions being made under section 32AB. Learned counsel for the Department relies upon the definition given in section 80B(5). According to that definition as it stands with effect from April 1, 1988, "gross total income" in Chapter VI-A means the total income computed in accordance with the provisions of the Act before making any deduction under the said Chapter VI-A. Thus, the only deductions which are excluded by that definition are those under Chapter VI-A. 16 More importantly the total income has to be computed in accordance with the provisions of the Income-tax Act. Obviously, the provisions of the Income-tax A....