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Section 10AA of the Act allows to a unit, deduction of profits and gains derived from the export of article or things or services for a specified period if the assessee fulfils certain conditions specified under that section. Since the assessee had complied with the conditions specified u/s 10AA, it claimed 100% deduction of profit and gains earned in respect of export turnover from its Jamnagar Refinery SEZ undertaking u/s. 10AA of the Act. The Form 56F (Revised) filed by the assessee, has been verified by the AO and there is no dispute as regards the quantum of deduction worked out therein. Since the deduction allowable u/s 10AA is restricted to export profit, the assessee claimed deduction of Rs.6832,18,56,826/- out of the total profit of Rs.7530,26,45,346/- of the eligible undertaking.
"13.9 However the assessee has sought to make a claim of further deduction of Rs.698,07,88,520/- (vide Form No.10CCB) u/s.80IB(9) of the Act, probably by having misconceived notion that profits of undertaking to the extent of Rs.6832,18,56,826/-only have been claimed and allowed as deduction u/s.10AA of the Act, and the balance (Rs.7530,26,45,346 MINUS Rs.6832,18,56,826/-) can further be claimed u/s.80IB(9) of the Act Whereas the fact remains that entire profits of Rs.7530,26,45,346/- have been claimed and allowed for deduction u/s.10AA, and accordingly no further deduction under any other sections of the Act can be allowed or entertained in respect of the profits of the unit of Rs.7530,26,45,346/ "13.10 For the reasons mentioned above in detail, I am of the view that deduction U/s.10AA as claimed by assessee and computed on the basis of "entire profit of the unit", subject to the provisions of the Act such as section 10AA(7), has to be allowed at Rs.6832,18,56,826/- and in view of the scheme and provisions of the Act, no deduction can be allowed to the assessee u,/s80IB of the Act. Therefore, claim of deduction u/s.80IB of the Act of Rs.698,07,88,519/- disallowed and the same is added back to the income of the assessee company."
The provisions of sec. 80A(4) uses the expression "where any amount of profits ....... of undertaking .....is claimed and allowed as deduction under any of those provisions for any assessment year... deduction in respect of, and to the extent of, such profits shall not be allowed under any other provisions of this Act for such assessment year and shall in no case exceed the profits and gains of such undertaking...". The expressions "any amount of profits...", "claimed and allowed" and "deduction in respect of and to the extent of such profits" are, in our view, crucial words that need to be understood while interpreting this provision. The expression "any amount of profits....", in our view, would also mean "a portion of profit". The expression "claimed and allowed", in our view, would mean that the deduction actually allowed on the portion of profit. The expression "in respect of and to the extent of such profits", in our view, would mean the portion of profit so allowed as ITA Nos.1645 & 2876/Mum/2019 ITA Nos.2344 & 3945/Mum/2019 Assessment Years: 2014-15 & 2015-16 deduction (under sec. 10A or 10AA or 10B or 10BA or any provisions of Chapter VI under the heading "C-deductions in respect of certain incomes") is not eligible for deduction under any other provisions of the Act to the extent so allowed. In the instant case, the assessee has been allowed deduction u/s 10AA of the Act only to the extent of Rs. Rs.4379.1.3 crores against the profit of Rs.5036.35 crores. The above said amount is the amount claimed and allowed u/s 10AA of the Act. Hence the deduction in respect of such profits and to the extent of Rs.4379.13 crores shall not be allowed under any other provisions of the Act. Had the expression "to the extent of not been there in sec. 80A(4), there is a possibility to say that the expression "in respect, of refers to the entire profit of Rs.5036.35 crores. Accordingly we are of the view that there is merit in the contentions of the assessee. Our view is further fortified by the expression "shall in no case exceed the profits and gains of such undertaking. as the case may be". The above said expression visualises the situation that an assessee may be claiming deduction under different provisions of the Act for the profits derived from the same undertaking. Hence the provisions of sec. 80A(4) visualises that the deduction in respect of profits and gains of an undertaking may be claimed under different provisions and hence the restriction is only for that portion of profit claimed and allowed as deduction under setc. 10A or 10AA or 10B or 10BA or any provisions of Chapter VI under heading "C - deductions in respect, of certain incomes" shall not be eligible for deduction under any other provisions of the Act. For the remaining portion of profit, the assessee is eligible to claim deduction under any other section.

80. The ld CIT(A) has expressed the view that the assessee has adopted two different parameters for computing deductions u/s 10AA ITA Nos.1645 & 2876/Mum/2019 ITA Nos.2344 & 3945/Mum/2019 Assessment Years: 2014-15 & 2015-16 and u/s 80IB(9) of the Income Tax Act, 1961. We have noticed earlier that, during the year under consideration, the assessee earned profit of Rs.5036.35 crores from this unit. As per the formula prescribed in scc. 10AA of the Act, the deduction allowable u/s 10AA on the above said profit worked out to Rs.4379.13 crores. Against the profit of Rs.5036.35 crores arid the deduction actually allowed u/s 10AA of the Act was Rs.4379.13 crores. The difference between the two figures was Rs.657.22 crores. The assessee claimed deduction of Rs.421,39 crores u/s 80IB(9) of the Act, which was over and above the amount of Rs.4379.13 crores claimed u/s.10AA of the Act. The amount of deduction of Rs.421.38 crores u/s. 80IB(9) of the Act was arrived at by the assessee as under: