Deduction under s 80HHC

If a deduction under s 80-IA has been taken, a deduction under s 80HHC is not admissible, as held by PHHC in Gupta International v CIT, Karnal — In favour of: The revenue; ITA No 174 of 2011.

Gupta International v CIT, Karnal

High Court of Punjab and Haryana

ITA No. 174 of 2011

Adarsh Kumar Goel, ACJ and Ajay Kumar Mittal

Decided on: 20 July 2011

Counsel appeared:

Mr. Rishabh Kapoor, Advocate for the appellant

Adarsh Kumar Goel, ACJ.

This order will dispose of ITA Nos.174 and 175 of 2011 as both the appeals involve

common questions of law.

2. ITA No.174 of 2011 has been preferred by the assessee under section 260A of the

Income Tax Act, 1961 against the order of ITAT Delhi “C” Bench in ITA

No.2656/Delhi/2008 dated 10.7.2009 for the assessment year 2002-03 raising following

substantial questions of law:-

“a) Whether on the true and correct interpretation of the provisions of section

80HHC read with section 80-IA(9) read with section 80-IB(13) the Tribunal has

erred in restricting the claim of deductions under the Act?

b) Whether the provisions of Taxation Laws (Amendment) Act, 2005 by

bringing third and fourth proviso to section 80HHC retrospectively are

unconstitutional and against Article 14, 19 (1)(g) of the Constitution and needs

to be quashed?

c) Whether on the true and correct interpretation of the provisions of section 148

the same are applicable in a case where a substantive provision has been

brought in the statute retrospectively?

3. Learned counsel for the appellant-assessee fairly states that matter is covered against

the assessee by order of this Court dated 18.4.2011 in ITA No.469 of 2010, Asin Exim

International v. Commissioner of Income Tax, Jalandhar, Punjab wherein it was held

that if deduction under section 80-IA has been taken, deduction under section 80HHC

was not admissible in view of section 80-IB(13) read with section 80-IA(9) of the Act,

following earlier judgment of this Court in Friends Castings (P) Limited v. Commissioner

of Income Tax, (2011) 50 DTR Judgments 61.

4. In view of above, no substantial question of law arises. The appeals are dismissed.