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TMI Blog2021 (10) TMI 560X X X X Extracts X X X X X X X X Extracts X X X X ..... ing in section 80IA(5) - HELD THAT:- Once income had been determined by applying the methodology as provided in Section 80HHC(3), the question of restricting the deduction in terms of Section 80AB would not arise. That in Section 80AB(2) of the Act, the restriction of deduction is on gross total income and in such circumstances, restriction on the total profit of business was not at all justified. This decision of the Hon‟ble Bombay High Court squarely covers the issue in favour of the assessee and in view thereof, the Ld. CIT(Appeal) has provided relief to the assessee. That even before us, the Ld. DR fairly conceded that the issue is covered by the aforesaid decisions of the Hon‟ble Bombay High Court in V M Salgaocar Brother ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und(s) or raise, any other ground(s) at the time of proceedings before the Hon. Tribunal which may please be granted. 2. Since facts and circumstances involved in all these appeals are similar and grounds of appeal are common in respect of the issues involved for all the appeals before us, these appeals were heard together and disposed of vide this consolidated order. 3. That on perusal of the grounds of appeals in appeal memo filed by the Revenue for each of the assessment years, broadly the grievance of the Revenue is in allowing deduction u/s.80IA(4)(iv) of the Income Tax Act, 1961 (hereinafter referred to as the Act‟) on gross total income by the Ld. CIT(Appeal), which in assessee's case includes income from capital g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .80IA of the Act extended to the gross total income which would also include long term capital gain, income from other source is not acceptable and therefore, these incomes are separately taxed and no deduction u/s.80IA of the Act was adjusted against it. Accordingly, with regard to the assessee‟s income, the Assessing Officer was of the view that long term capital gain and income from other sources has to be computed and added to the total income of the assessee without allowing deduction u/s.80IA of the act and deduction u/s.80IA of the Act was restricted to ₹ 10,08,60,993/-. 6. That before the Ld. CIT(Appeal), in the detailed written submissions filed by the assessee, strong reliance was placed on the decision of the Hon&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion gross total income is defined by section 80B(5), for the purposes of Chapter VIA., to mean the total income computed in accordance with the provisions of the Act before making any deduction under the Chapter. The expression total income has been defined in section 2(45) to mean that total amount of income referred to in Section (5), computed in the manner laid down in the Act. Section 5(1) enunciates that subject to the provisions of the Act, the total income of any previous year of a person who is a resident, includes all income from whatever source derived. In computing the total income of the assessee, there is no basis in the provisions of section 80IA to restrict the expression to total income derived from an eligible business. Ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to him was profit of the business, it was held that once the income had been determined by applying the methodology as provided in section 80HHC (3), the question of restricting the deduction in terms of section 80AB would not arise. This is so in terms of section 80AB as the assessee was claiming deductions on its export profits alone, which was included in computing its gross total income. Section 80HHC(3) was introduced when the provisions of Section 80AB were already on the statute. Even upon reading the provisions of section 80AB, the determination of the amount as provided therein would have to be effected for the purpose of computing the deductions under each of the respective sections specified in Part C. As such, while computing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was held by the Hon‟ble Bombay High Court that once income had been determined by applying the methodology as provided in Section 80HHC(3), the question of restricting the deduction in terms of Section 80AB would not arise. That in Section 80AB(2) of the Act, the restriction of deduction is on gross total income and in such circumstances, restriction on the total profit of business was not at all justified. This decision of the Hon‟ble Bombay High Court squarely covers the issue in favour of the assessee and in view thereof, the Ld. CIT(Appeal) has provided relief to the assessee. That even before us, the Ld. DR fairly conceded that the issue is covered by the aforesaid decisions of the Hon‟ble Bombay High Court (supra.) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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