2017 (6) TMI 21

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....assessee. 2. This Court while admitting the appeal No.46/2009 on 02.02.2009 has framed the following substantial question of law: "Whether in the facts and in the circumstances of the case, the Ld. ITAT was legally correct in holding that relief u/s 80IB of the Act is to be deducted from profits and gains of business before computing relief u/s 80HHC of the Act?" 2.1 This Court while admitting the appeal No.43/2009 on 02.02.2009 has framed the following substantial question of law: "Whether in the facts and in the circumstances of the case, the Ld. ITAT was legally correct in holding that relief u/s 80IB of the Act is to be deducted from profits and gains of business before computing relief u/s 80HHC of the Act?" ....

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....ellant has placed reliance on the decision of this court in the case of Commissioner of Income Tax vs. M/s Modern Threads (I) Ltd. Jaipur in DB Income Tax Appeal No.337/2008, decided on 08.02.2017 wherein this Court has observed as under: "3. Counsel for the appellant contended that in view of the decision of Gujarat High Court in the case of Transpek Silox Industry Ltd. vs. Deputy Commissioner of Income Tax Circle 4 decided on 25th July, 2016 wherein it has been held as under:- "28. It is true, as pointed out by the counsel for the assessee that in different provisions the Legislature has used different language for restricting or limiting the claim of deductions. The use of language in statutory provisions in such comple....

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....tion 80IA. Such provision, therefore, would have to be applied at the very stage to assessee's claim for deduction under section 80HHC of the Act is considered. While computing such deduction the effect of subsection (9) of section 80IA would have to be given. We do not think that in the process we are tinkering with the formula for computation of eligible profit for deduction under section 80HHC of the Act. We have noticed that different formulae have been provided for manufacturing exporter and trader and in case of an assessee whose exports comprise of both the sources. It is, therefore, at the stage of sub-section (3) of section 80HHC effect of sub-section (9) of section 80IA would apply. It is true that clause (baa) to explanation ....