Division Bench of Supreme Court splits on the issue of simultaneous deduction u/s 80IB rws 80IA(9) and 80HHC. Where assessee is carrying export business as well as domestic business and is eligible for deduction both u/s 80HHC as well as 80IB, the issue is whether amount of eligible deduction computed u/s 80IB rws 80IA(9) shall be deducted in computing profits of business u/s 80HHC. An example will make position clear. Supposing an assessee has gross total income of Rs. 1,000/- and is entitled to deduction under Sections 80IA and 80HHC and the deduction under Section 80IA is Rs. 300/-, then the department says that gross total income of which deduction under Section 80HHC is to be computed would be Rs. 700/-, and not Rs. 1,000/-. On the other hand, the case of the assessee is that the gross total income would not undergo a change or reduction for the purpose of Section 80HHC [Extracted from Para 15 and 16 of Judgment. The issue has arisen due to language of section 80IA(9). Which reads as “ Where any amount of profits and gains of an (undertaking) or of an enterprise in the case of an Assessee is claimed and allowed under this Section for any assessment year, deduction to the extent of such profits and gains shall not be allowed under any other provisions of this Chapter under the heading "C.-Deductions in respect of certain incomes", and shall in no case exceed the profits and gains of such eligible business of (undertaking) or enterprise, as the case may beSection 80-IA(9) consists of three parts. The second part of section 80-IA(9) provided that the deduction to the extent of profits allowed under section 80-IA(1) shall not be allowed under any other provisions. It obviously means that the deductions that are allowable under other provisions under heading C of Chapter VI-A would be allowed to the extent of profits as reduced by the profits allowed under section 80-IA(1). The second part of section 80-IA(9) does not even remotely refer to the method of computing deduction under other provisions under heading C of Chapter VI-A. Thus, section 80-IA(9) seeks to curtail allowance of deduction and not computability of deduction under any other provisions under heading C of Chatper VI-A of the Act. Matter now referred to larger bench Micro Labs Ltd. [2015] 64 taxmann.com 199 (SC) DECEMBER 10, 2015