2004 (1) TMI 15

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....f law has been referred for our opinion for the assessment year 1989-90: "Whether, the Appellate Tribunal is right in law and on facts in confirming the order passed by the Commissioner of Income-tax (Appeals) holding that the deduction under section 80-I should be given without any deduction under section 80HH from the total income?" We have heard Mr. Manish R. Bhatt, learned standing counsel f....

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....such geographical limitations, and also that the provisions of section 80J permit carry forward if the assessee is not able to avail of complete deduction under section 80J on account of not having sufficient profits, this court interpreted the provisions of section 80HH(9) to mean that while first of all the benefit under the provision of section 80HH is to be given to the assessee, if the profit....

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....ee's case is strengthened in the context of availing of deduction under section 80HH and section 80-I. For the relevant assessment year 1989-90, the provisions of sub-section (1) of section 80J clearly provided that for computing the total income of the assessee under section 80J, a deduction from the profits and gains (as reduced by the deduction, if any, admissible to the assessee under section....

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....d portion in section 80J referring to section 80HH was inserted/substituted by the Taxation Laws (Amendment) Act, 1975 with effect from April 1, 1976, and the bracketed portion for section 80HHA was inserted by the Finance (No. 2) Act, 1977, with effect from April 1, 1978. Hence while inserting section 80-I in the year 1981, the Legislature was conscious of the formula prescribed in section 80J wi....