- (1.) HEARD learned counsel for the parties and perused the impugned orders.
(2.) THIS appeal has been admitted in terms of following questions : (i) Whether the learned Tribunal was right in its wisdom to hold that deduction under Section 80IA is to be allowed on the gross total income of Rs. 1,25,98,790, even when deduction under Section 80HHC was already claimed and allowed at Rs. 81,57,935 on the said GTI? (ii) Whether the learned Tribunal was right in its wisdom to allow total tax benefit/double tax deduction under two different provisions of IT Act, i.e., Sections 80HHC and 80 -IA on the same gross total income of Rs. 1,25,98,790 ? The assessee is a registered firm carrying its business of export. The assessee -firm filed return of its income for asst. yr. 1995 -96 on 31st March, 1996. Total income declared by the assessee -firm was Rs. 12,91,160. During the course of assessment, it was found that the assessee -firm has claimed deduction under s, 80 -IA and also deduction under Section 80HHC of the IT Act, 1961 (for short, 'the Act'). The ITO was of the view that once deduction under Section 80HHC was allowed at Rs. 81,57,935, deduction under Section 80 -IA cannot be allowed on the same gross total income. Therefore, the ITO has allowed deduction under Section 80 -IA only on the balance amount i.e., after deduction under Section 80HHC of the Act. In appeal before CIT(A), the CIT(A) has also affirmed the view taken by the AO. In appeal before the Tribunal, the Tribunal has allowed claim of the assessee holding that the assessee is entitled to deduction under Section 80HHC as well as Section 80IA of the Act on total gross income.
(3.) IN appeal before us, Shri Singhi, learned counsel for the Revenue, submits that once deduction under Section 80HHC of the Act is allowed, thereafter deduction under Section 80 -IA can be allowed only on the balance amount left. He further submits that even the amendment has been made to this effect in 1998 by insertion of Sub -section (9A) after Sub -section (9) of Section 80IA by Finance (No. 2) Act, 1998, w.e.f. 1st April, 1999, therefore, deduction under Section 80 -IA should be allowed on the balance amount.;