Deduction U/s. 80HH allowable from Gross Profits Instead of Net Income

M/s. Vijay Industries Vs CIT (Supreme Court of India) CONCLUSION – Reading of Section 80HH along with Section 80A would clearly signify that such a deduction has to be of gross profits and gains, i.e., before computing the income as specified in Sections 30 to 43D of the Act. FACTS – Section 80HH grants deduction from profit and gains to an undertaking engaged in manufacturing or business of hotel and provides deduction @20% of the profits and gains of undertaking for 10 assessment years. Assessee claimed deduction @20% of profit and gains i.e. gross profit, whereas, department contended t...