2012 (5) TMI 212

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ause (baa) to Explanation (ii) to Section 80-HHC. When once it is held that Sections under the heading " 'C' - deductions in respect of certain incomes" are independent of each other and the assessee is entitled to claim deduction under more than one Section, the deduction has to be necessarily in the profits and gains arrived at after making the claims in terms of the oforesaid Section. However, the overall claim under both Sections has to be restricted to the total profits and gains of such eligible business from gross total income. - Decided in favor of assessee. - I T APPEAL NO. 906 OF 2006 - - - Dated:- 15-2-2012 - N. KUMAR AND RAVI MALIMATH, JJ. M.V. Seshachala for the Appellant. S. Parthasarathi, P.Dinesh and Mallaha Rao .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... hall not qualify to that extent for deduction for any assessment year 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 hotel" 20. In the aforesaid provision they have categorically stated that such portion of the profit shall not qualify to that extent for deduction for any assessment year under any other provisions in this Chapter under the heading "'C' deductions in respect of certain incomes." Therefore, the Legislature has consciously used the words making their intentions clear. As in the very same Chapter dealing with different sections, when the Legislature has used different sets of words, meaning has to be give .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... t of certain incomes.' Therefore Section 80IA(ix) effects the allowability of deductions and not computation and deductions. The deduction to which the assessee is entitled to under this provision is to be computed at the time of allowing deductions and not at the time of computing deductions. Therefore the contention of the revenue that the profits and gains permitted to be deducted under Section 80-IA should be deducted out of the profits of the business and thereafter the profits and gains from export business is to be calculated, as otherwise it would amount to double benefit, is contrary to the scheme of the aforesaid statutory provisions as well as Clause ( baa ) to Explanation ( ii ) to Section 80-HHC. When once it is held that Sec .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X