2026 (7) TMI 1723

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.... deduction under Section 80-HHC of the Income Tax Act, on the profit, after deduction under Section 80-IB, applying sub-section (9) of Section 80-IA. The assessment order was challenged by the assessee before the Commissioner of Income Tax (Appeals) and the appeal was allowed. Aggrieved, the Revenue preferred appeal before the Income Tax Appellate Tribunal. The Tribunal, similar to the previous assessment year 2003-2004, allowed the Revenue's appeal and hence, the present appeal is filed by the assessee. 2. At the time of admitting this appeal along with T.C.A.Nos.1517 and 1518 of 2007, this Court framed common substantial questions of law, as follows: (i) Whether the relief under Section 80-IB should be deducted from profits an....

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....essee will be entitled to deduction of an amount equal to hundred per cent of profits and gains derived from such business for ten consecutive years. 18. Section 80-IB deals with deductions in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings. The deduction under said provision is applicable when gross total income of an assessee includes any profit or gain derived from any business mentioned in various Sub-sections of Section 80-IB. An assessee is entitled to a deduction from such profits and gains of an amount equal to such percentage and for such number of assessment years as specified in the Section. 19. In this context, now the provision of Sub-section....

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.... in any other provision under the heading 'C' is not allowed. The deduction to the extent allowed under Section 80-IA cannot be allowed under any other provision under heading 'C'. Therefore, if deduction to the extent of 'X' is claimed and allowed out of gross total income of 'Y' under Section 80-IA and the asssessee wants to claim deduction under any other provision under the heading 'C', though he may be entitled to deduction 'Y' under the said provision, he will get deduction under the other provisions to the extent of (Y - X) and in no case total deductions under heading 'C' can exceed the profits and gains of such eligible business of undertaking or enterprise. 21. Sub-section (9) of Section 80-IA, on its plain reading, does ....