2007 (11) TMI 122

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....n:    "Whether the Income-tax Appellate Tribunal ( Tribunal ) was correct in law in holding that the Assessee is entitled to a deduction under Section 80HHC of the Income Tax Act, 1961 before adjusting unabsorbed business and unabsorbed depreciation." 3. Learned counsel for the Revenue has drawn our attention to Section 80A of the Income Tax Act, 1961 (for "short Act" ). This Secti....

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.... the total income computed in accordance with the provisions of this Act, before making any deduction under this Chapter." 6.  A plain reading of Section 80B (5) of the Act shows that first the gross total income has to be computed and thereafter deductions, if any, under Chapter VI-A of the Act, may be made. 7.  It follows, therefore, that on a combined reading of Section 80A and ....

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....ction applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction to the extent of profits, referred to in sub-section (1B), derived by the assessee from the export of such goods or merchandise :" 10.  From a reading of Section 80HHC(1) of the Act, it appears that for computing the total inco....

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....Section 80P of the Act which also is a part of Chapter VI-A of the Act. In that case, the Supreme Court reversed the decision of the High Court and held that in view of Section 80B(5) of the Act it is necessary for the purpose of making a deduction under Section 80P of the Act to determine the gross total income in accordance with other provisions of the Act. In other words, the gross total income....