Section 80IB Deduction Cannot Be Reduced by Section 80HHC Deduction During Computation: ITAT Delhi

Sarla Fashion Garments Vs CIT (ITAT Delhi) The appeal arose from an order passed under Section 263 of the Income Tax Act, 1961, whereby the Commissioner set aside an earlier appellate order that had allowed deduction under Section 80IB on the full gross total income without reducing the deduction already allowed under Section 80HHC. The Commissioner interpreted Section 80IA(9) read with Section 80IB(13) and concluded that the deduction under Section 80IB required recomputation after considering the deduction already granted under Section 80HHC. Accordingly, the Assessing Officer was directed t...