profits allowed under Section 80IA ,
so that the deductions under both the Sections (80IA and 80HHC in the
present case) do not exceed the profits ... affects whole of Section 80HHC and it cannot be said that even
though Section 80HHC is subject to Section 80IA(9) , the manner of
computation
Section 80IA
were not considered. As per provisions of Section 80IA(9) ,
where deduction is allowed u/s 80IA in respect of eligible
profits ... 80IA and 80HHC . While computing deduction
u/s 80HHC, the assessee was required to reduce the amount
of deduction claimed u/s 80IA in respect
entitled to deduction under Sections 80IA
and 80HHC and the deduction under Section 80IA is Rs.
300/-, then the gross total income of which deduction ... deduction under Section 80HHC , but
postulates that the deduction computed under Section 80HHC
so aggregated with the deduction under Section 80IA does not
exceed
profits and this is clear from a combined reading of Section 80HHC & 80IA(9) of the Act. In this regard, he also pointed ... wherein it has been held that the deduction Under Section 80IA & 80HHC should be computed independently and with a only rider that the total
section 80IA despite the provisions of section 80IA(9)?"
2. The question involves the interpretation of sub-section (9) of section 80IA ... where it exceeds such eligible profits, inbuilt restrictions under section
80HHC and section 80IA have been provided. This explanation nowhere
restricts the scope
80IA of the Act. This 30% deduction under
Section 80IA of the Act was computed without deducting / excluding the
deduction allowed under Section 80HHC ... Section 9A to Section 80IA of the Act, there was no provision either in
Section 80IA or in Section 80HHC of the Act indicating
these details while considering the assessee's claim under Section 80HHC and 80IA . The AO applied his mind and had actually reduced the assessee ... correctly apply the Explanation (baa) while considering the deduction under Section 80HHC and 80IA to which the notice under Section 148 could not be issued
relating to the claim of
the assessee for deduction U/s 80IA, 80HHC and 80-O
in respect of capital gain and other income ... allowing
the deductions claimed by the assessee u/s 80IA ,
80HHC and 80-O in respect of the said capital gain The
ld. CIT thus
rate difference from miscellaneous expenses,
resulting in excess deduction u/s 80HHC and 80IA of the Act.
Accordingly, the AO observed that this receipt being ... while computing eligible profits for the purpose of deduction u/s 80IA and 80HHC
of the Act.
30. On appeal, the ld. CIT(A) upheld
proceedings also raised a specific query about the computation
under section 80HHC and 80IA /IB of the Act. After examining both the
claims ... while computing
deduction under section 80HHC of the Act. Accordingly the A.O. recomputed
deduction under section 80HHC and 80IA of the Act and restricted
