9911796707
TMI Blog1984 (3) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... als) held that the audit fee is allowable as an item of expenditure and, accordingly, deleted Rs. 2,260. Against the same, the revenue has preferred this appeal. 2. The learned departmental representative submitted that since the assessee returned loss and the assessment has been completed on a loss, the deduction claimed under section 80VV is not allowable as it could be allowed only when there is a positive income. The learned counsel for the assessee supported the order of the Commissioner (Appeals). 3. We have considered the rival submissions. The issue for consideration is that when there is no positive income, whether the deduction claimed under section 80VV is allowable. To decide the issue it will be necessary to examine the rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the aggregate amount of the deductions required to be made under Chapter VI-A of the Act shall not exceed the gross total income of the assessee. So, the total income arrived at after making deductions specified in sections 80C to 80VV from the gross total income can never be minus or negative figure. The gross total income is defined in section 80B(5) according to which gross total income means the total income computed in accordance with the provisions of the Act before making deductions under Chapter VI-A or under section 280-0 of the Act. Under section 80VV, expenditure incurred in respect of any proceedings before any income-tax authority or the Tribunal or any Court relating to the determination of any liability under the Act by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is indeed contemplated and taken care of by section 80A, sub-section (2), which provides that the aggregate amount of the deductions shall not in any case exceed the gross total income of the assessee." It is clear from the above observation that the aggregate amount of the deductions shall not in any case exceed the gross total income and the total income after allowing the deductions can never be a minus or a negative figure. Thus, the deductions under Chapter VI-A can be allowed only when there is positive income. The above ratio squarely applies to the instant case. We have already pointed out that there is no positive income, as the assessment has resulted in loss. Thus, the deduction under section 80VV cannot be allowed as there is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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