2004 (7) TMI 75

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rned Income-tax Appellate Tribunal was right in its wisdom to allow total tax benefit/double tax deduction under two different provisions of the Income-tax Act, i.e., sections 80HHC and 80-IA on the same gross total income of Rs. 1,25,98,790?" The assessee is a registered firm carrying its business of export. The asses-see-firm filed a return of its income for the assessment year 1995-96 on March 31, 1996. The total income declared by the assessee-firm was Rs. 12,91,160. During the course of assessment, it was found that the assessee-firm has claimed deduction under section 80-IA and also deduction under section 80HHC of the Income-tax Act, 1961 (for short, "the Act"). The Income-tax Officer was of the view that once deduction under sectio....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the issue, whether both the deductions under sections 80HHC and 80-IA of the Act should be allowed on the gross total income of the assessee, the Division Bench of the Madhya Pradesh High Court in J.P. Tobacco Products P. Ltd. v. CIT [1998] 229 ITR 123, at page 125, observed as under: "Sub-section (9) of section 80HH, as it stood prior to insertion of section 80-I by the Finance (No. 2) Act, 1980, with effect from April 1,1981, originally included only section 80J. Section 80J providing for deduction in respect of the profits and gains from newly established industrial undertakings or ships or hotel business in certain cases did not make any provision for reduction of the gross total income by the amount of deduction admissible to the ass....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... on the gross total income and not on the income reduced by the amount allowed under section 80HH." Similar view has been taken by this court in CIT v. Chokshi Contacts P. Ltd. [2001] 251 ITR 587. Chapter VI-A of the Act deals with deductions, which are to be allowed c while computing the total income. Sub-section (1) of section 80A of the Act provides that while computing the total income of an assessee, there shall be allowed a deduction from the gross total income, in accordance with and subject to the provisions of this Chapter, the deductions specified in sections 80C to 80U. "Gross total income" has been defined in sub-section (5) of section 80B of the Act. Definition under section 80B(5) provides that "gross total income" means tha....