Pramod Kumar, Accountant Member :

This is an appeal filed by the taxpayer and is directed against the order dt. 19th Oct., 2004 passed by the CIT(A), in the matter of assessment under s. 143(3) of the IT Act, 1961 (hereinafter referred to as 'the Act') for the tax asst. yr. 2001-02. The taxpayer before us is company incorporated in the USA, which has a PE in India by way of a branch office.

2. By way of this appeal, the taxpayer has raised three grievances—first, against the CIT(A) holding that the loss incurred by the taxpayer, in respect of new unit eligible for deduction under s. 10A, was not eligible for set off against other business profits of the taxpayer; second, that the CIT(A) has erred in rejecting taxpayer's claim for deduction under s. 44C in respect of head office expenses; and, third, that the CIT(A) has erred in rejecting taxpayer's claim for incentive deduction under s. 80HHE in respect of profits of business of software exports. In last grievance, the taxpayer has alleged that denying him deduction under s. 80HHE constitutes discrimination against the taxpayer—something which is expressly forbidden by art. 26(2) of Convention for the Avoidance of Double T