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TMI Blog2007 (3) TMI 784X X X X Extracts X X X X X X X X Extracts X X X X ..... -HHE(5) of the Income Tax Act, 1961 which inter alia states that where deduction under the section is claimed and allowed in respect of profits and business referred to in sub-section (1) for any assessment year, no deduction shall be allowed in relation to such profits under any other provision of this Act for the same or any other assessment year . The fact that the assessee company had claimed deduction u/s.80-HHE for AYs. 1998-99 to 2000-01 was ignored and deduction under sec. 10A was erroneously allowed in relation to export profits for assessment year 2001-02. ii) allowing deduction u/s 10A even though the company had not fulfilled the requisite condition and by not appreciating the fact that permission given by STPI was conditi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion under the section is claimed and allowed in respect of profit of the business referred to in sub-section (1) for any assessment year, no deduction shall be allowed in relation to such profits under any other provisions of this act for the same or any other assessment year . This issue has been elaborately dealt with by the ITAT, Co-ordinate Bench, in case of Legato Systems India Pvt. Ltd. 93 TTJ 828, wherein it was held that sub-section (5) of sec. 80-HHE was inserted in the statute book with a view to avoid double deduction, inasmuch as, the profits calculated in accordance with sub.sec(1) of sec. 80HHE for a particular assessment year cannot be claimed as a deduction for the same assessment year under any provision of the Act or for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the previous year. Since both the sections, i.e., section 80-HHE and sec. 10A entitle the benefit, the assessee would legitimately be entitled to claim the benefit of that provision of law which enables a larger benefit being earned by him. 5. We also found that section 10B of the Income Tax Act, 1961 provides for 100% deduction of profits derived by a hundred per cent export oriented undertaking, from export of articles or things or computer software manufactured or produced by it. The deduction is available for a period of ten consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce articles or things or computer software. However, no deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omplied with by the assessee, therefore, there is no reason for denying the deduction claimed under sec. 10B of the Act: The conditions for deduction as per section 10A are as under: i) It has begun or begins to manufacture or produce article or things or computer software on or after 1st April, 1994. ii) It is not formed by the splitting up or the reconstruction of a business already in existence. iii) It is not formed by transfer to a new business of machinery or plant previously used for any purpose. iv) If the sale proceeds of the articles or computers software exported out of India are received in, or brought into, India by the assessee in convertible foreign exchange with a period of six months from the end of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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