If a deduction under s 80-IA has been taken, a deduction under s 80HHC is not admissible

Gupta International v CIT (High Court of Punjab and Haryana) Learned counsel for the appellant-assessee fairly states that matter is covered against the assessee by order of this Court dated 18.4.2011 in ITA No.469 of 2010, Asin Exim International v. Commissioner of Income Tax, Jalandhar, Punjab wherein it was held that if deduction under section 80-IA has been taken, deduction under section 80HHC was not admissible in view of section 80-IB(13) read with section 80-IA(9) of the Act, following earlier judgment of this Court in Friends Castings (P) Limited v. Commissioner of Income Tax, (2011) 50 DTR Judgments 61.  In view of above, no substantial question of law arises. The appeals are dismissed.

Gupta International v CIT, Karnal

High Court of Punjab and Haryana

ITA No. 174 of 2011

Decided on: 20 July 2011

 Judgment

This order will dispose of ITA Nos.174 and 175 of 2011 as both the appeals involve common questions of law.

2. ITA No.174 of 2011 has been preferred by the assessee under section 260A of the Income Tax Act, 1961 against the order of ITAT Delhi “C” Bench in ITA No.2656/Delhi/2008 dated 10.7.2009 for the assessment year 2002-03 raising following substantial questions of law:-

“a) Whether on the true and correct interpretation of the provisions of section 80HHC read with section 80-IA(9) read with section 80-IB(13) the Tribunal has erred in restricting the claim of deductions under the Act?

b) Whether the provisions of Taxation Laws (Amendment) Act, 2005 by bringing third and fourth proviso to section 80HHC retrospectively are unconstitutional and against Article 14, 19 (1)(g) of the Constitution and needs to be quashed?

c) Whether on the true and correct interpretation of the provisions of section 148 the same are applicable in a case where a substantive provision has been brought in the statute retrospectively?

3. Learned counsel for the appellant-assessee fairly states that matter is covered against the assessee by order of this Court dated 18.4.2011 in ITA No.469 of 2010, Asin Exim International v. Commissioner of Income Tax, Jalandhar, Punjab wherein it was held that if deduction under section 80-IA has been taken, deduction under section 80HHC was not admissible in view of section 80-IB(13) read with section 80-IA(9) of the Act, following earlier judgment of this Court in Friends Castings (P) Limited v. Commissioner of Income Tax, (2011) 50 DTR Judgments 61.

4. In view of above, no substantial question of law arises. The appeals are dismissed.

Related posts:

1. Forex from overseas film rights is admissible for deduction under Section 80HHC
2. Amount of brought business loss and unabsorbed depreciation is not required to be first set-off before computing the deduction allowable under s 80HHC for the purpose of computing book profits, matter remitted to make calculation under s 80HHC
3. Section 80-IA(9) cannot be interpreted to mean that s. 80-IA deduction has to be reduced for computing deduction U/s. 80HHC – Bombay HC
4. For purposes of clause (iv) of Explanation 1 to section 115JB, extent of reduction in respect of deduction available under section 80HHC has to be computed strictly in accordance with provisions of section 80HHC
5. Penalty u/s 271(1)(c) can not be levied on ground of disallowance of deduction u/s 80HHC of IT Act, 1961