2013 (12) TMI 180

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....on of export turnover given under subclause A of clause under explanation to subsection 6 of S. 80HHF. 2. On the facts and in the circumstances of the case and in law the CIT(A) has not appreciated the fact that when the total turnover does not include Duty Draw Back, the same cannot be included in total turnover and as a consequence cannot form part of prof its of the business. 3. On the facts and in the circumstances of the case and in law the CIT(A) erred in taking the view that interest income has to be treated as part of business income." 2. Briefly stated the facts of the case are that the assessee had claimed deduction u/s 80 HHF of Rs. 47,29,694/-. On verification of the claim of the assessee, the AO noticed that deduction ....

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....ed, the assesssee carried the matter in appeal before the CIT(A). The learned CIT(A) held that the receipts are not of the nature of the receipts referred to in explanation (f) to section 80 HHC of the Act and observed that the AO had mistakenly reduced 90% of the duty draw back also under the said explanation when there is no provision for the same under section 80HHF. Aggrieved, the revenue carried the matter in appeal before the Tribunal. 3. Before us, the learned DR has submitted that the CIT(A) has failed to appreciate the facts of the case when the total turnover does include duty draw back, the same cannot be included in total turnover and as a consequence cannot from part of profits of the business. In support of his submission, ....

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....ck to the AO with a direction to consider the facts and decide the issue in the light of the Explanation (j) to Section 80 HHF of the Act, after giving reasonable opportunity of being heard to the assessee. 6. As regards interest income is concerned, the assessee has reduced 90% of income of Rs. 4801321 while arriving at the profits of the business. However, AO held that the interest income in the hands of the chargeable under the head 'income from other sources' as the assessee is not engaged in the business of finance or money lending but is engaged in the business of production and distribution of films. The AO while deciding the issue followed the order of CIT(A) for AY 2002-03. The assessee carried the matter in appeal before the CI....