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TMI Blog2017 (6) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... he appeal No.46/2009 on 02.02.2009 has framed the following substantial question of law: "Whether in the facts and in the circumstances of the case, the Ld. ITAT was legally correct in holding that relief u/s 80IB of the Act is to be deducted from profits and gains of business before computing relief u/s 80HHC of the Act?" 2.1 This Court while admitting the appeal No.43/2009 on 02.02.2009 has framed the following substantial question of law: "Whether in the facts and in the circumstances of the case, the Ld. ITAT was legally correct in holding that relief u/s 80IB of the Act is to be deducted from profits and gains of business before computing relief u/s 80HHC of the Act?" 2.2 This Court while admitting the appeal No.44/2009 on 02.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax vs. M/s Modern Threads (I) Ltd. Jaipur in DB Income Tax Appeal No.337/2008, decided on 08.02.2017 wherein this Court has observed as under: "3. Counsel for the appellant contended that in view of the decision of Gujarat High Court in the case of Transpek Silox Industry Ltd. vs. Deputy Commissioner of Income Tax Circle 4 decided on 25th July, 2016 wherein it has been held as under:- "28. It is true, as pointed out by the counsel for the assessee that in different provisions the Legislature has used different language for restricting or limiting the claim of deductions. The use of language in statutory provisions in such complex situations must be peculiar to every situation the Legislature may seek to meet with. Merely because in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n under section 80HHC of the Act is considered. While computing such deduction the effect of subsection (9) of section 80IA would have to be given. We do not think that in the process we are tinkering with the formula for computation of eligible profit for deduction under section 80HHC of the Act. We have noticed that different formulae have been provided for manufacturing exporter and trader and in case of an assessee whose exports comprise of both the sources. It is, therefore, at the stage of sub-section (3) of section 80HHC effect of sub-section (9) of section 80IA would apply. It is true that clause (baa) to explanation to section 80HHC defines a term `profits of the business'. While working out the business profits as specified th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Income Tax decided on 6th January, 2014 has not referred the earlier judgment which was confirmed by the Hon'ble Supreme Court. 8. In view of the above, it is well settled position that the earlier view which was confirmed by the Hon'ble Supreme Court is required to be followed since other Division Bench has not followed the earlier decisions. 9. In that view of the matter, the issue is answered in favour of the assessee and against the department subject to the view which is also referred to Larger Bench as per the order of the Hon'ble Supreme Court reported in [2016] 380 ITR 1 (SC). Therefore, parties will be abide by the decision of the Hon'ble Supreme Court which is subject to applicability of the provision for the relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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