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 profit

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