1995 (7) TMI 19

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....tax cases, the question of law referred to this court under section 256 of the Income-tax Act, 1961 (hereinafter referred to as " the Act "), is the same. All the tax cases have been preferred by the Revenue and the assessee in all the three cases is the same, viz., the Tamil Nadu Textile Corporation, Coimbatore. Tax Case No. 477 of 1985 relates to the assessment year 1978-79, Tax Case No. 478 ....

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....y which instead of the abovesaid extracted expression, the following expression was substituted : " total income (computed before making any deduction under this clause and Chapter VI-A)." (emphasis supplied). Thus, by the abovesaid amendment of 1985, the abovesaid percentage of deduction under the said clause has been expressly stated as having to be computed on the total income as computed....

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....Chapter VI-A." So, at the first blush, it appears that for the first time the Legislature wanted to introduce the expression " under this clause " in the said section 36(1)(viii). That is one reason for the Karnataka High Court in Karnataka State Financial Corporation v. CIT [1988] 174 ITR 206 holding that prior to the said amendment of 1985, for computing the abovesaid percentage of deduction,....

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....h Courts, for coming to the abovesaid different conclusion in favour of the assessee, inter alia, relied on the expression " unless the context otherwise requires " appearing in the main part of section 2 of the Act (i.e., before the said section embarks on defining certain expressions used in the enactment, including the abovesaid expression " total income "). In other words, according to those d....