Section 80 A of Income Tax Act "Deductions to be made in computing total income"
80A. (1) In computing the total income of an assessee,
there shall be allowed from his gross total income, in
accordance with and subject to the provisions of this
Chapter, the deductions specified in sections 80C to 80U.
(2) The aggregate amount of the deductions under this
Chapter shall not, in any case, exceed the gross total
income of the assessee.
(3) Where, in computing the total income of an association
of persons or a body of individuals, any deduction is
admissible under section 80G or section 80GGA or section
80GGC or section 80HH or section 80HHA or section 80HHB or
section 80HHC or section 80HHD or section 80-I or section
80-IA or section 80-IB or section 80-IC or section 80-ID or
section 80-IE or section 80J or section 80JJ, no deduction
under the same section shall be made in computing the total
income of a member of the association of persons or body of
individuals in relation to the share of such member in the
income of the association of persons or body of individuals.
(4) Notwithstanding anything to the contrary contained in
section 10A or section 10AA or section 10B or section 10BA
or in any provisions of this Chapter under the heading
"C.-Deductions in respect of certain incomes", where, in the
case of an assessee, any amount of profits and gains of an
undertaking or unit or enterprise or eligible business is
claimed and allowed as a deduction under any of those
provisions for any assessment year, deduction in respect of,
and to the extent of, such profits and gains shall not be
allowed under any other provisions of this Act for such
assessment year and shall in no case exceed the profits and
gains of such undertaking or unit or enterprise or eligible
business, as the case may be.
(5) Where the assessee fails to make a claim in his return
of income for any deduction under section 10A or section
10AA or section 10B or section 10BA or under any provision
of this Chapter under the heading "C.-Deductions in respect
of certain incomes", no deduction shall be allowed to him
thereunder.
(6) Notwithstanding anything to the contrary contained in
section 10A or section 10AA or section 10B or section 10BA
or in any provisions of this Chapter under the heading
"C.-Deductions in respect of certain incomes", where any
goods or services held for the purposes of the undertaking
or unit or enterprise or eligible business are transferred
to any other business carried on by the assessee or where
any goods or services held for the purposes of any other
business carried on by the assessee are transferred to the
undertaking or unit or enterprise or eligible business and,
the consideration, if any, for such transfer as recorded in
the accounts of the undertaking or unit or enterprise or
eligible business does not correspond to the market value of
such goods or services as on the date of the transfer, then,
for the purposes of any deduction under this Chapter, the
profits and gains of such undertaking or unit or enterprise
or eligible business shall be computed as if the transfer,
in either case, had been made at the market value of such
goods or services as on that date.
Explanation.-For the purposes of this sub-section, the
expression "market value",-
(i) in relation to any goods or services sold or supplied,
means the price that such goods or services would fetch if
these were sold by the undertaking or unit or enterprise or
eligible business in the open market, subject to statutory
or regulatory restrictions, if any;
(ii) in relation to any goods or services acquired, means
the price that such goods or services would cost if these
were acquired by the undertaking or unit or enterprise or
eligible business from the open market, subject to statutory
or regulatory restrictions, if any;
(iii) in relation to any goods or services sold, supplied or
acquired means the arm's length price as defined in clause
(ii) of section 92F of such goods or services, if it is a
specified domestic transaction referred to in section 92BA.
(7) Where a deduction under any provision of this Chapter
under the heading "C.-Deductions in respect of certain
incomes" is claimed and allowed in respect of profits of any
of the specified business referred to in clause (c) of
sub-section (8) of section 35AD for any assessment year, no
deduction shall be allowed under the provisions of section
35AD in relation to such specified business for the same or
any other assessment year.