9911796707
TMI Blog1998 (2) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment years in question are 1975-76 and 1976-77. The assessee-company carries on the business of printing, publishing and trading. It maintains separate accounts in respect of printing and publishing activity on the one hand and trading on the other. Printing and publishing being a priority industry the assessee was entitled to claim the benefit of the deduction of 20 per cent. of the income from its printing and publishing business under section 80QQ. The Assessing Officer for the purpose of deciding the amount of deduction for which the assessee was eligible under section 80QQ first set off the trading loss that had] been incurred by the assessee in trading business, against the profit earned by it from the printing and publishing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purpose of computing the deduction under that section, the amount of income of that nature as computed in accordance with the provisions of this Act (before making any deduction under this Chapter) shall alone be deemed 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." That section applies to deductions to be made or allowed under all the sections under the heading "C.-Deductions in respect of certain income" in Chapter Vi-A of the Act, including section 80QQ, but excluding section 80M. The manner in which the gross total income is to be calculated is governed by the other provisions of the Act including section 70. Section 70 provides for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ratory or not, while the question was specifically considered by the Supreme Court in the case of H. H. Sir Rama Varma v. CIT[1994] 205 ITR 433. We are bound by that latter decision and the law declared therein is the law which we are required to apply for determining the extent to which deductions are to be permitted tinder several sections in Chapter VIA excluding section 80M. Learned counsel also referred to certain other decisions which it is unnecessary to refer to, having regard to the law laid down in the case of H. H. Sir Rama Varma v. CIT[1994] 205 ITR 433 (SC). We may also notice here the judgment of the Constitution Bench of the apex court in the case of Distributors (Baroda) P. Ltd. v. Union of India [1985] 155 ITR 120 in wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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