2026 (5) TMI 190

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....r the Assessment year 2003-2004, it filed return of income declaring income of Rs. 16,53,065/-. The appellant arrived this income claiming deduction of Rs. 72,77,912/- under Section 80-HHC and besides claiming deduction of Rs. 58,27,020/- under Section 80-IB, from the gross income. 2. The Assessing Officer completed the assessment under Section 143(3) determining the total income at Rs. 50,01,780/-. Inter alia, for computing the deduction under Section 80-HHC, he first deducting Rs. 58,27,020/- (claimed under Section 80-IB by the assessee) from the profits of the business and thereafter, allowed only Rs. 39,29,201/- as deduction under Section 80-HHC. 3. The assessee preferred appeal before CIT(A) contending that the Assessing Officer ....

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.... questioning the same as infirm and contrary to the spirit of law meant for providing tax concessions for industries involved in exports and earning foreign exchange. 6. On considering the conflicting views regarding the method of computing the taxable income, the following Substantial Question of Law framed for consideration:- Whether the Tribunal was right in holding that the relief u/s 80-IB should be deducted from profits and gains of business before computing relief u/s 80-HHC of the Income Tax Act? 7. The Learned Counsel appearing for the appellant/assessee submitted that the mode of computing deductions claimed under Chapter VI A of the Act been considered by the Hon'ble Supreme Court at length in M/s Shital Fibers Ltd....