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Thanks a million for pointing out these judgements. I had missed them. They are really very important judgements because Goetze had created such a major problem.

Regards,

taxepert.

The first issue is covered in favour of the assessee by the decision in Govind Rubber 89 ITD 457 where it was held "For the purpose of determination of book profit under s. 115J assessee was entitled for deduction of profit attributable to export under s. 80HHC even though the assessee was denied deduction under s. 80HHC because of the provisions of s. 80A as the income computed for the assessment year under consideration was negative though the book profit attributable to export under s. 80HHC was positive."

However, the issue is now pending before the Special Bench in the case of Syncomp which was heard on 3rd January. The decision is awaited.

The second issue is on a week footing IMHO. If no deductions are to be allowed under the section itself (as opposed to a case where you are entitled to a deduction but you do not get it owing to other factors), can you still say you are "entitled" to a deduction? I don't think so.

What is the practice being followed in the ITAT regarding the Goetze judgment? Are they being liberal and treating the issue as an additional ground filed before them and entertaining the ground or not??