Allahdad Tannery Vs DCIT (ITAT Lucknow)
ITAT Lucknow held that deduction under section 80IB and section 80HHC of the Income Tax Act is simultaneously allowable from the net profit. Accordingly, addition is directed to be deleted and appeal is allowed.
Facts- The present appeal has been preferred by the assessee. The only effective ground in this appeal is with regard to the claim of deduction u/s 80IB and also 80HHC of the Income Tax Act, 1961 simultaneously from the net profit.
Conclusion- The Bombay High Court has set at rest the controversy In the case of Associated Capsules Pvt. Ltd. 332 ITR 42. The Bombay High Court has held that both the deduction u/s 80IB and 80HHC have to be allowed symenteniously subject to the effect that the deduction claimed under both the section 80IB & 80HHC should not exceed 100% of the assessed income. Notably, the judgment of the Hon’ble Bombay High Court rendered in the case of Associated Capsules (P.) Ltd vs DCIT, Central Circle-43 (332 ITR 42) has been approved by the three Judges Bench of the Hon’ble Apex Court rendered in the case of Shital Fibers Ltd vs CIT (Civil Appeal No.14318 of 2015) along with other appeals. Hence, the issue now stands decided in favour of the assessee.
