2008 (12) TMI 191

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....opto electrical division. It claimed deduction under section 80-IA at 100 per cent. and deduction under section 80HHC was also claimed for the exports carried out from the optic division. The Assessing Officer limited the deduction claimed under section 80HHC invoking the provisions under section 80-IA(9A) and allowed the appeal. Against that, the Revenue moved the Income-tax Appellate Tribunal by way of two appeals, one relating to the assessment year 1998-99 and the other relating to the assessment year 1999-2000. Both the appeals were heard and decided together. The Tribunal, relying on the decision of the Special Bench in I. T. A. Nos. 963/ M/05 and 1518/M/06 dated April 27, 2007, for the assessment years 1999-2000 and 2002-03, found th....

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....ns of the undertaking or hotel, as the case may be." 5. Paragraph 35 in the Central Board of Direct Taxes Circular No 772 dated December 23, 1998 reads as follows: "35. Amendment in section 80HHD and section 80-IA to prevent double deduction of same profit: 35.1 Under the provisions of Chapter VI-A of the Income-tax Act, various deductions from the profits and gains are allowed to specified assessees, subject to fulfilling certain requirements specified under the relevant sections. The total deductions under Chapter VI-A of the Income-tax Act are restricted to the gross total income in respect of the assessee as a whole. 35.2 However, it was noticed that certain assessees claimed more than 100 per cent. deduction on such profits....

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.... 80-IA only on the balance amount, i.e., the amount remained after deduction under section 80HHC of the Act. In the absence of such an intention, deduction under section 80-IA of the Act should also be allowed on the gross total amount, as the words used in sub-section (1) of section 80A of the Act for deduction are 'gross total income' and not on the balance amount after any deduction made under any section . . . the facts remains that this amendment has been brought by the Act of 1998 and made effective from April 1, 1999, and we are concerned with the assessment year 1995-96, therefore, this amendment has nothing to do with the assessment year 1995-96 and this amendment in no way helps the Department." 8. The decision in Asst. CIT v. ....