2006 (3) TMI 287

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....llow the claim of the assessee under section 80HHC without excluding deduction allowed under sections 80-I and 80G of the Act. Though the appeal was filed by the revenue on 21-6-2005 when the limit for filing the appeal was prescribed by the CBDT at Rs. 1 lakh, the assessee's contention is that the said limit has been increased by the subsequent Circular of the Board dated 24-10-2005 and therefore, the appeal should not be entertained in view of the Bombay High Court decision in the case of CIT v. Pithwa Engg. Works [2005] 276 ITR 519. 3. The department has, however, contended that the new limit applies only to appeals filed after 30-10-2005 and the decision in the case of Pithwa Engg. Works has no application for the increased limit....

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....e of the fact that by passage of time money value has gone down, the cost of litigation expenses has gone up, the assessees on the file of the Departments have increased; consequently, the burden on the department also increased to a tremendous extent. The corridors of the superior courts are choked with huge pendency of cases. In this view of the matter, the Board has rightly taken a decision not to file references if the tax effect is less than Rs. 2 lakhs. The same policy for old matters needs to be adopted by the Department. In our view, the Board's Circular dated 27-3-2000, is very much applicable even to the old references which are still undecided. The Department is not justified in proceeding with the old references wherein the ....

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.... be allowed on the income derived from exports The income is to be computed as per the provisions of sub-section (3) which reads as under:- "(3) For the purposes of sub-section (1),- (a) where the export out of India is of goods or merchandise manufactured or processed by the assessee, the profits derived from such export shall be the amount which bears to the profits of the business, the same proportion as the export turnover in respect of such goods bears to the total turnover of the business carried on by the assessee; (b) where the export out of India is of trading goods, the profits derived from such export shall be the export turnover in respect of such trading goods as reduced by the direct costs and indire....