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TMI Blog2003 (10) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... The order of recomputing the deduction under section 80HHC by rectification is set aside and the order passed by the Income-tax Officer in that regard is restored for the respective assessment years. X X X X Extracts X X X X X X X X Extracts X X X X ..... to be absorbed against the income of the current year and, therefore, recomputation of income for the purpose of computing permissible deduction under section 80-I for the new industrial undertaking was not required in the present case." So far as recomputation of allowable deductions under section 80HHC is concerned, the Assessing Officer has held that deduction allowable under section 80HHC has also not been correctly worked out and the above mistake being apparent from the record, notice under section 154 deserves to be issued requiring the assessee to show cause as to why the assessment should not be revised. The Assessing Officer further held that the contentions made by the assessee with regard to the mistakes pointed out by him are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eduction of the profits derived by the assessee from the export of such goods or merchandise. 80A. Deductions to be made in computing total income. - (1) In computing the total income of an assessee, there shall be allowed from his gross total income, in accordance with and subject to the provisions of this Chapter, the deductions specified in sections 80C to 80U. 80AB. Deductions to be made with reference to the income included in the gross total income. - Where any deduction is required to be made or allowed under any section included in this Chapter under the heading C - Deductions in respect of certain incomes in respect of any income of the nature specified in that section which is included in the gross total income of the assessee, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be the amount of income of that nature which is derived or received by the assessee and which is included in his gross total income in question. As per section 80B, the gross total income means the total income computed in accordance with the provisions of the Act before making any deduction under this Chapter. Sub-section (3)(a) of section 80HHC clearly lays down that where the export out of India is of goods or merchandise manufactured or processed by the assessee, the profits derived from such export shall be the amount which bears to the profits of the business, the same proportion as the export turnover in respect of such goods bears to the total turnover of the business carried on by the assessee. A combined reading of the afores ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income from incentive income for the purpose of computing allowable deduction under section 80HHC which needs to be rectified, he has committed no mistake. It was a mistake apparent on the face of the record for which there could be no different opinion and, therefore, liable to be rectified under section 154, subject to the period of limitation. There being no issue that rectification proceedings were not initiated within the limitation, the rectification order in so far as it relates to the recomputation of allowable deduction under section 80HHC was not liable to be interfered with. The Tribunal as well as the Commissioner of Income-tax (Appeals) have erred in holding the question to be a debatable one, merely because for different asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd of unabsorbed allowable deduction under Chapter VI-A was permissible. Apparently, reading of the provisions of section 80A(2) and section 80VVA(1) and (4) justifies the contention of the assessee that this is a debatable issue whether unabsorbed deduction under Chapter VI-A could be carried forward for the subsequent assessment year or not. We have, therefore, not framed this question as a substantial question of law arising for consideration in this appeal. As a result of the aforesaid discussion, these appeals are allowed in part. The order of the Tribunal in setting aside the rectification of recomputation of deduction under section 80-I is upheld. The order of recomputing the deduction under section 80HHC by rectification is set as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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