Amended section 10B as well as section 10A, 10AA, 10BA were introduced in the Act with a specific purpose. All these sections can be classified as ‘special provisions’ with regard to allowable deductions in certain areas. Said sections contain an in-built mechanism for computing the profits arising out of the business activities of the units/undertakings. It is a fact that above sections, including section 10B talk about ‘deductions’, but it is also a fact that still they are part of Chapter III i.e., the chapter that deals with income which do not form part of total income. On the other hand, section 80HHF is part of Chapter VI that deals with deductions in respect of certain incomes. No double taxation and no double exemptions/deductions/rebates is considered to be one of the fundamental principles of tax-jurisprudence. It is held that as both the sections prohibit to allow deduction other than allowable under the respective sections, so the Commissioner (Appeals) had rightly rejected the claim of the assessee. The prohibition in the section is total, it is not discretionary. “… no deduction shall be allowed….” are the words used in both the sections. Words used in both the sections are ‘shall not’ and they are mandatory. The express intention of the legislature with regard to sections 10B(6)(iii) and 80HHF is not to allow deduction under both the sections. Ground raised by the assessee is, therefore, decided against the assessee.
IN THE ITAT MUMBAI BENCH ‘D’
Assistant Commissioner of Income-tax, 11(1)
Sri Adhikari Brothers Television Network Ltd.
IT APPEAL NOS. 5867 & 6187 (MUM.) OF 2004
[ASSESSMENT YEAR 2001-02]
MAY 16, 2012