2011 (9) TMI 639

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.... Assessment Year 1991-92. In the said appeal, the following two questions arose for determination: "(i) "Whether on a true and proper interpretation of section 80HHC of the Income Tax Act, 1961 and in view of the undisputed position that the garden tea business and purchased tea for which separate accounts are maintained and profits are separately computed, the Tribunal was justified in law in holding that the deduction under the said Section was required to be computed by aggregating the profits, export turn over and total turn over of all the businesses and not separately with reference to the profits, export turnover and total turnover of each business? "(ii) Whether the Tribunal was justified in law in upholding the determination of ....

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....e of IPCA Laboratory Ltd. (supra), which has no relevance in respect of Assessment Year 1991-92 and in support of such contention Dr. Pal relied upon a subsequent decision of the Supreme Court in the case of Mysodet P. Ltd. v. CIT [2008] 305 ITR 276/174 Taxman 221 where the Supreme Court set aside the order of the High Court for relying upon the case of IPCA Laboratory Ltd in calculating the benefit in that case relating to Assessment Year 1990-91 on the ground that the mode of calculation was different in the year 1996-97, the relevant assessment year involved in the case of IPCA Laboratory Ltd. (supra) In other words, according to Dr. Pal, there was no scope of relying upon the principle laid down in the case of IPCA Laboratory Ltd. (supr....

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....rnover and the consequential benefit under Section 80HHC separately for each business. Our object of relying upon the principles laid down in the case of IPCA Laboratory Ltd. (supra) was that as pointed out in that case, for giving benefit under Section 80HHC of the Act, there must be positive profit of the assessee and consequently, the question whether the assessee had the positive profit cannot be determined unless the total export turnover of the assessee and the resultant profit or the loss of all his businesses are taken into account. 9. As pointed out by the Supreme Court even in the case Mysodet P. Ltd., relied upon by Dr. Pal, for calculating the benefit of Section 80HHC of the Act, the requisite formula to be applied is as follow....