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TMI Blog2018 (12) TMI 692X X X X Extracts X X X X X X X X Extracts X X X X ..... er VI-A deduction without considering the fact that as per provisions of section 80A(2) the aggregate amount of deductions under chapter VI-A shall not, in any case exceed the gross total income of the assessee - Held that:- We concur with the same that overall deduction under Chapter-VIA could not exceed gross total income of the assessee in terms of Section 80A(2). Therefore, the aforesaid deduction shall be granted by AO within this overall limit provided u/s 80A(2). The impugned order stand modified to that extent. Ground Number-2 stands allowed. - I.T.A. No.3852/Mum/2014 - - - Dated:- 11-12-2018 - Mr Joginder Singh, Vice President And Mr Manoj Kumar Aggarwal, Accountant Member For The Assessee : Ms. Aarti Vissanji- Ld. AR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... venue on 18/06/2018. Since the same is legal issue and do not require appreciation of new facts, the same is admitted. This is second round of litigation since the matter in the first round was set aside by the Tribunal to the file of Ld. CIT(A) vide ITA No. 5742/Mum/2002 order dated 20/06/2006 with the following directions: - 11. Ground No.5 relates to disallowance of deduction u/s 80-O with respect to foreign exchange received by the assessee after deducting direct and indirect expenses. The Ld. AR pointed out that this issue has been decided against the assessee by the order of the Tribunal in assessee s own case rendered in ITA No. 629/Mum/2003 for A.Y.1995-96 in which Mumbai Special Bench decision in case of Petroleum India Inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the said figures, only direct expenses allocable to foreign contracts were deducted and indirect expenses were ignored. The Ld. AO, following AY 1989-90, reworked the same by taking into account division wise profit loss account and arrived at deduction of ₹ 184.76 Lacs. The working of the same has already been provided at para-13 of the quantum assessment order. The quantum of deduction was rectified to ₹ 247.19 Lacs on 21/12/1994 u/s 154. This ground is stated to be not pressed before first appellate authority in order dated 20/08/2002. However, the assessee subsequently contested the same as Ground Number-5 before this Tribunal vide ITA No. 5742/Mum/2002 dated 20/06/2006 wherein the matter got remitted back to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accordingly. The appellant has computed the entitlement of deduction u/s 80-C at ₹ 6.67 Crores, by deducting only the direct expenses. The AO shall verify this computation and accordingly grant deduction under Section 80-O of the Act to the appellant. Aggrieved, the revenue is in further appeal before us. 5. The Ld. Counsel for Assessee [AR], Ms. Aarti Vissanji , submitted that the issue stood covered in assessee s favor by the decision of this Tribunal rendered for AY 1995-96 and first appellate authority has simply followed the same. Per contra, Ld. DR submitted that quantum of deduction u/s 80-O could not exceed gross total income of the assessee in terms of Section 80A(2). 6. We have carefully heard the rival conten ..... X X X X Extracts X X X X X X X X Extracts X X X X
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