TaxTMI 
TaxTMI 
2014 (8) TMI 559
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.... of deduction u/s.80HHC of the Act? 2. Whether the Tribunal was correct in holding that the receipts on sale of raw materials, tools, stores, scraps etc., cannot form part of turnover for the purpose of computation of deduction u/s.80HHC of the Act? 3. Whether the Tribunal was correct in holding that 90% of 'net interest income' and not 'gross interest receipts' required to be reduced from profits and gains from business or profession despite Explanation (baa) to Section 80HHC of the Act? 4. Whether the Tribunal was correct in holding that 90% of interest of Rs. 2,99,10,951/- representing interest received from customers on overdue bills, short term deposits etc., c....
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....ring and selling stainless steel utensils, in addition to steel utensils, the assessee might also sell some other things like an old air-conditioner or old furniture or something which has outlived its utility. When such things are disposed of, the question would be whether the sale proceeds of such things would be included in the "turnover". Similarly, in the process of manufacturing utensils, there would be some scrap of stainless steel material, which cannot be used for manufacturing utensils. Such small pieces of stainless steel would be sold as scrap. Here also, the question is whether sale proceeds of such scrap can be included in the term "sales" when it is to be reflected in the profit and loss account. 20. In or....
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....;ble Supreme Court. Therefore, the first and second substantial questions of law are answered in favour of the assessee and against the Revenue. 4. Insofar the substantial questions of law Nos.3 and 4 are concerned, this Court had an occasion to consider the similar questions in the case of Commissioner of Income Tax and Another Vs. Krone Communication Ltd., reported in (2011) 333 ITR 497, where it was held as under: "In the definition in sub-section (4C) of section 80HHC of the Income-tax Act, 1961, it is specifically mentioned that what is to be reduced in 90 per cent. of any receipts by way of commission "included in such profits". Therefore, it is clear that is not the receipt of 90 per cent. of ....
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....rofits and gains of business or profession", ninety per cent. of such quantum of receipts cannot be reduced under clause (1) of Explanation (baa) from the profits of the business. In other words, only ninety per cent, of the net amount of any receipt of the nature mentioned in clause (1) which is actually included in the profits of the assessee is to be deducted from the profits of the assessee for determining "profits of the business" of the assessee under Explanation (baa) to section 80HHC." 6. In that view of the matter, the said substantial questions of law are answered in favour of the assessee and against the Revenue. 7. Insofar fifth substantial question of law is concerned, the said question fell for consideration before this Cour....
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....ng technical services outside India is liable to be deducted out of export turnover. The said provision has no application in the case of export out of India of computer software or its transmission from India to a place outside India by any means. The law makes a distinction between technical services rendered in connection with export of computer software and export of technical services for the purpose of development or production of computer software outside India. If the technical services rendered by the assessee's Engineers is in connection with the export of computer software for the purpose of testing, installation and monitoring of software such a turnover do not fall within clause (ii) of subsection (1) of section 80HHE of th....