2026 (7) TMI 209

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..../-. After scrutiny, notice was issued under Section 143(2) of the Income Tax Act, 1961. While completing the assessment, the Assessing Officer reduced from the deduction claimed under Section 80HHC. The amount deducted under Section 80IB and worked out the deduction under Section 80HHC at Rs.2,58,22,633/- on which the restriction of 80% was applied. 2. Aggrieved by the order of the Assessing Officer, appeal has been filed by the assessee in ITA No.108/2003-04 before the Commissioner of Income Tax (Appeals)X and the same was dismissed by the CIT(A) on 27.02.2004. Being not satisfied, the assessee has filed an appeal before the Income Tax Appellate Tribunal, Chennai Bench "B", in ITA No.722/Mds/2004 for the AY 2001-02 and the Tribunal has ....

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....r this section for any assessment year, deduction to the extent of such profits and gains shall not be allowed under any other provisions of this Chapter under the heading 'C.-Deductions in respect of certain incomes,' and shall in no case exceed the profits and gains of such eligible business of undertaking or enterprise, as the case may be." Let us analyse Sub-section (9). It is applicable where any amount of profits and gains of an undertaking or enterprise is claimed and allowed under Section 80-IA. As stated earlier, the deduction is to the extent of percentage of profits and gains derived from certain category of businesses. Sub-section (9) of Section 80- IA provides that the deduction to the extent of profit or gain shall not be allo....