2001 (2) TMI 97

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..... spite of service. At the instance of the Commissioner of Income-tax, the following question of law arising out of I. T. A. No. 52/JP of 1988, for the assessment year 1983-84 has been referred to this court for its opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the deduction under section 80HH of the Act should be allowed to .....

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..... ding that deduction under section 80HH be allowed on the gross total income computed without deduction of the unabsorbed amount of investment allowance of the preceding year. The Commissioner of Income-tax (Appeals) did not accept the said contention notwithstanding the decision of the Tribunal to the contrary and placed reliance on section 80AB inserted by the Finance (No. 2) Act of 1980, with ef .....

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..... his section applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to twenty per cent. thereof. Section 80AB clearly postulates that for the purpose of computing the deduction under any provision of Chapter VI-A, of which section 80HH is also a pa .....

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..... income from business or profession of an assessee under Part D of Chapter IV. Section 32A deals with deduction of amount of investment allowance to be made in computing the profits and gains of business, That, inter alia, also provides that for carry forward of unabsorbed investment allowance, if any, remaining after making deduction in any particular year to be set off. against the profit and los .....

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..... he decision in the case of CIT v. Vishnu Oil and Dal Mills [1996] 218 ITR 71 (Raj) and CIT v. Sun Stone Engineering Industries P. Ltd. [19961 220 ITR 182 (Raj). As a result, the aforesaid question referred by the Tribunal is answered in the negative, i.e., to say, in favour of the Revenue and against the assessee, by holding that deduction under section 80HH of the Act can be allowed to the asse .....

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