1994 (11) TMI 5

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.... the Income-tax Act, 1961, should be allowed on the gross total income instead of the net income as computed in accordance with the provisions of the Income-tax Act before making any deduction under Chapter VI-A ?" The assessee, Vishnu Oil and Dal Mills, Jodhpur, was assessed by the Income-tax Officer, A-Ward, Jodhpur, for the assessment year 1979-80. The assessee claimed deduction under section 80HH at the rate of 20 per cent. of the gross profit of Rs. 5,70,596.46 but the Income-tax Officer allowed deduction on Rs. 3,30,168, i.e., the net income computed under the Act and rejected the claim of the assessee for the remaining amount. Aggrieved by the order passed by the Income-tax Officer in not allowing the deduction on the basis of the....

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....r hotel business in backward areas and states that "where the gross total income of an assessee includes any profits and gains derived from an industrial undertaking, or the business of a hotel, to which section 80HH applies, there shall, in accordance with and subject to the provisions of section 80HH, be allowed, in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to twenty per cent. thereof." This section 80HH was inserted by the Direct Taxes (Amendment) Act, 1974 (Act No. XXVI of 1974). Section 80AB of the Act deals with the deduction to be made with reference to the income included in the gross total income and states that where any deduction is required to be made or allowed under ....