9911796707
TMI Blog1989 (8) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... d, on this point, the learned CIT (Appeals) vide his order dated 24-10-1988 restored the matter to the ITO's file and asked him to verify the assessee's claim and allow it in accordance with law. The assessing officer, vide his order dated 12-12-1986 passed in pursuance of the aforesaid order of the CIT (A) allowed the deduction under sec. 80HHC at Rs. 2,48,128 as against the original figure of Rs. 1,04,876. The assessing officer did not allow deduction under sec. 80HHC in respect of the turnover effected from the unit in Kandla Free Trade Zone. The assessee filed an appeal and the CIT (Appeals), vide his impugned order, upheld the action of the assessing officer in this regard. The assessee has come up in appeal to the Tribunal against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ile sections 80HH, 80HHA, 80-I and 80J were specifically mentioned in sub-section (4) of sec. 10A, there was no reference to sec. 80HHC. The intention of the Legislature was clear that even whether complete tax holiday was granted in respect of industrial undertakings in free trade zones, the concession or deduction available to the assessees under sec. 80HHC was not affected. It was, therefore, submitted that the assessee was entitled to deduction under section 80HHC even in respect of the export turnover from its unit in the Kandla Free Trade Zone. 26. The learned Departmental Representative, on the other hand, submitted that sec. 80HHC could not be mentioned in sec. 10A(4) because the section itself came on the statute book by the Fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h both the sections, namely sec. 80AB and sec. 10A were to take effect from 1-4-1981, sec. 80AB became a part of the statute as early as 21-8-80. If the argument of the learned Departmental Representative to the effect that, after the insertion of sec. 80AB, it became unnecessary to amend sec. 10A were to be accepted, then the reference to sections 80HH, 80HHA, 80-I and 80J in sec. 10A(4)(iii) would become superfluous and it is settled law that no surplusage can be attributed to Legislature. It is also significant to note that, after the insertion of sec. 80HHC w.e.f. 1-4-1983, no corresponding amendment was made in sec. 10A(4)(iii). This supports the view canvassed on behalf of the assessee that deduction under sec. 80HHC could still be ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee and which is included in his gross total income. Accordingly, the deductions specified in the aforesaid sections were to be calculated with reference to the net income as computed in accordance with the provisions of the Act and not with reference to the gross amount of such income, subject however to the other requirements of the respective sections. This position has been amply explained and clarified in the Explanatory Notes contained in Circular No. 281 dated 22-9-80 dealing with the provisions as contained in Finance (No. 2) Act, 1980. 29. There is one more aspect of the matter section 80HHC does not make any distinction between the export turnover from the Free Trade Zone and from other areas. The revenue may feel that once the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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