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TMI Blog2017 (2) TMI 1216X X X X Extracts X X X X X X X X Extracts X X X X ..... to explanation to section 80HHC defines a term 'profits of the business' - While working out the business profits as specified therein, in terms of sub-section (9) of section 80IA the profit or gain which had already been allowed deduction to the extent mentioned therein would have to be ignored. In IPCA Laboratory Ltd. v. Deputy Commissioner of Income-Tax reported in [2004 (3) TMI 9 - SUPREME Court] it has been held that Section 80AB is also in Chapter VI-A - It starts with the words "where any deduction is required to be made or allowed under any Section of this Chapter" - This would include Section 80HHC - Section 80AB further provides that "notwithstanding anything contained in that Section" - Thus Section 80AB has been given an over ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scertained? ii) Whether in the facts and circumstances of the case, the assessee can be entitled for deductions u/s 80I on the gross total amount before deductions u/s 80HH of the IT Act? 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 Leg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the very stage to assessee's claim for deduction under section 80HHC of the Act is considered. While computing such deduction the effect of sub-section (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'. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which has been cited of Vijay Solvex Ltd. vs. Commissioner 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 su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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