TaxTMI 
TaxTMI 
2026 (3) TMI 962
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....r Choudhary, Adv., Mr. Divya Suri, Adv., Mr. Sachin Bhardwaj, Adv., Mr. Yogesh Kumar Mittal, Adv., Ms. Samridhi, Adv., Ms. Srishti Choudhary, Adv., Ms. Shefali Choudhary, Adv., Ms. Namita Choudhary, AOR Mr. Ambhoj Kumar Sinha, AOR Mr. Raj Bahadur Yadav, AOR Mr. Salil Aggarwal, Sr. Adv., Mr. Bhargava V. Desai, AOR Mr. Shivam Sharma, Adv., Ms. Usha Nandini V., AOR Mr. Vikas Mehta, AOR Ms. Shashi M Kapila, Adv., Mr. Pravesh Sharma, Adv., Mr. Sushil Kumar, Adv., Mr. Vaishak Omanakuttan, Adv., Mr. Vaishnav Kumar, Adv., Mr. Ajay Vohra, Sr. Adv., Mr. Vaibhav Kulkarni, Adv., Mr. Aniket Deepak Agrawal, AOR Mr. Akash Shukla, Adv., Mr. Yash Nagar, Adv., For the Respondent(s): Mr. Sahil Tagotra, AOR Ms. Shreya Kasera, Adv., Mr. N Venkataraman, A.S.G....
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....Vs. Micro Labs Ltd., reported in (2015) 17 SCC 1996 expressed a difference of opinion which necessitated the matter being referred to the Larger Bench. The Three Judges Bench of this Court resolved the said issue by affirming the view taken by the Bombay High Court in Associated Capsules (P) Ltd. Vs. Deputy Commissioner of Income Tax and Anr., reported in C.A. No.14318/2015 : (2011) SCC OnLine Bombay 27 and holding the Section 80-IA(9) restricts the availability not the computation of deduction. The said finding has been reiterated by the Three Judges Bench and held: "23. Hence, we find that the view taken by the Bombay High Court is correct. Dipak Misra, J (as he then was), in paragraphs 47 and 48 of the decision in the case of As....
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....der Section 80-IA is Rs 300, then the gross total income of which deduction under Section 80-HHC is to be computed would be Rs 700, and not Rs 1000. 48. On the other hand, the case of the assessee is that the gross total income would not undergo a change or reduction for the purpose of Section 80-HHC. The two deductions will be computed separately, without the deduction allowed under Section 80-IA being reduced from the gross total income for computing the deduction under Section 80-HHC. The reason being that sub-section (9) of Section 80-IA does not affect computation of deduction under Section 80-HHC, but postulates that the deduction computed under Section 80-HHC so aggregated with the deduction under Section 80-IA does not exce....
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....HHC and 80-IA when aggregated do not exceed profits and gains of such eligible business of undertaking and enterprise. 54. As I find, the legislature has used the expression "shall not qualify" in Sections 80-HHB(5) and 80-HHD(7), but the said expression has not been used in sub-section (9) of Section 80-IA. The formula prescribed in sub-section (3) of Section 80-HHC is a complete code for the purpose of the said computation of eligible profits and gains of business from exports of mercantiles and goods. It has reference to total turnover, turnover from exports in proportion to profits and gains from business in clause (a) and so forth under clauses (b) and (c) of Section 80-HHC(3) of the Act. In case the gross total income is redu....
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....ing the calculation in the said impracticable and unintelligible manner." 24. In view of what we have held above, we find that the interpretation made by the Bombay High Court in the case of Associated Capsules (P) Ltd. v. Deputy Commissioner of Income Tax and Anr ((2011) SCC Online Bombay 27) appears to be logical and correct." 6. Thus, the issue involved in the present appeals being no more res integra. The appeals filed by the assessee are hereby allowed. No order as to costs. 7. Pending application(s), if any, stands consigned to records. C.A. No.14341/2015 AND C.A. NO.14337/2015 : 1. Learned counsel appearing for the respondent - assessee would draw the attention of this Court to the verifying affidavits filed befo....