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TMI Blog2006 (11) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... BINDAL JJ. S. K. Garg Narwana for the Commissioner. Pankaj Jain for the assessee. JUDGMENT 1. The following questions of law have been referred for the opinion of this court by the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short, "the Tribunal"), arising out of its order dated March 20, 1997, in I.T.A. No. 349/Chandi/1991, for the assessment year 1989-90 : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in allowing investment allowance on the cost of machinery installed/purchased for the manufacture of soap which as per item No. 4 of the Eleventh Schedule read with section 32A of the Income-tax Act is specifically prohibited for the same ? 2. Whether, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peals) held that deduction under section 80HH of the Act should be computed before deduction under section 32A/32AB of the Act. The Tribunal upheld the said view relying upon the judgment of the Orissa High Court in CIT v. Tarun Udyog [1991] 191 ITR 688 and the judgment of the Karnataka High Court in CIT v. H. M. T. Ltd. [1993] 199 ITR 235, which was also followed by the said High Court in CIT v. Siddaganga Oil Extractions P. Ltd. [1993] 201 ITR 968. It was noticed that the contrary view had been taken by the Gujarat High Court in Paushak Ltd. v. CIT [1994] 210 ITR 535 and the Delhi High Court in Gedore Tools (India) P. Ltd. v. CIT [1993] 199 ITR 83. The same view was taken by the Delhi High Court in Motilal Pesticides (India) P. Ltd. v. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ems of personal hygiene of a human being, whereas the items mentioned at serial Nos. 20 and 21 are in the nature of washing preparations, such as, detergent. The case of the assessee is that it was engaged in the manufacture of washing soap and not the soap which is used by an human being for personal hygiene. This would necessarily fall within entry No. 20 as against entry No. 4 referred to above. If that is so, the product being manufactured by the petitioner being not in the negative list as per the Eleventh Schedule, it would be entitled to investment allowance in terms of section 32A of the Act. 8. We find substance in the contentions raised by counsel for the assessee as against the plea of counsel for the Revenue. The principle n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come" means the total income computed in accordance with the provisions of this Act before making any deduction under this Chapter. It cannot be disputed that the deduction under section 32A/32AB of the Act are allowed while computing the income before any deduction is allowed under Chapter VI-A. The provisions of the Act being quite explicit, there is no scope for taking a view different than what is enumerated therein. 11. Accordingly, the question referred is answered in favour of the Revenue and against the assessee while holding that the Tribunal was not right in concluding that the deduction under section 80HH of the Act was to be allowed before allowing (deduction) under section 32A/32AB of the Act. 12. Accordingly, the quest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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