2002 (8) TMI 40 - HC - Income Tax

Court denies financial consultant deduction under section 80HHC for exporting marine products

The High Court of Madras upheld the Tribunal's decision denying a financial consultant deduction under section 80HHC for the assessment year 1989-90 due ... 'Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the deduction admissible to the assessee under section 80HHC is nil?' - In this case, the assessee admittedly had not earned any profits from the export of the marine products. On the other hand, it had suffered a loss. The deduction permissible under section 80HHC is only a deduction of the profits of the assessee from the export of the goods or merchandise. By the very terms of section 80HHC, it is clear that the assessee was not entitled to any benefit thereunder in the absence of any profits. - The question referred to us therefore is answered against the assessee and in favour of the Revenue. The High Court of Madras ruled that the assessee, a financial consultant, was not entitled to deduction under section 80HHC for the assessment year 1989-90 as they did not earn any profits from exporting marine products. The Tribunal's decision denying the deduction was upheld.