2008 (5) TMI 352

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....the revenue for assessment year 2001-02 against different assessees namely Shri Narsi Shah Sadh, Farrukhabad and Smt. Sheela Sadh, Farrukhabad. Identical issues are involved in these appeals. The orders appealed against are even dated 9-3-2005. 2. The only legal issue involved in these appeals is as to whether unrealized portion of the export incentive issued by the Ministry of Commerce is elig....

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.... would or would not constitute eligible income for the purposes of deduction under section 80HHC. Since there was some doubt, CBDT had issued a circular. By the circular, CBDT clarified that export incentives, namely, cash compensatory support and duty drawback have to be included in the profits of the business for computing the deduction under section 80HHC. With the issuance of this circular the....

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....would include cash compensatory allowance and duty drawback and accordingly the Assessing Officer is directed to work out the deduction in accordance with the law as it stood during the relevant assessment year 1991-92. - CIT v. B. Desraj [2007] 207 CTR (Mad.) 81 set aside." 4. In the given case, the assessee has been following mercantile system of accounting and has shown the entire incentive ....