2015 (4) TMI 510

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....f the Income Tax Act, 1961?" 2. At the outset this Court notices that the impugned order has relied upon a special bench decision of the ITAT - International Research Park Laboratories Ltd. V. Assistant Commissioner of Income Tax (1995) 212 ITR (AT) 1. The view expressed in that order of the Tribunal by the special bench was that the income derived by the assessee towards commission/brokerage for procuring export orders for others is eligible for benefit under Section 80HHC(3) of the Income Tax Act. The said view has been in effect approved by the judgment of the Supreme Court in P.R. Prabhakar V. CIT (2006) 284 ITR 548 SC. Facts before the Supreme Court in P. R. Prabhakar are extracted below : "3. By reason of the impugned judgment, ....

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.... Income-tax Appellate Tribunal, Delhi Bench in International Research Park Laboratories Ltd. v. Asst. CIT [1995] 212 ITR (AT) 1, wherein interpreting the Central Board of Direct Taxes circular it was stated (at page 48) : "Now, we come to whether the commission received could form part of export profits. Here again, we are unable to see it differently. It is no doubt true that this commission is not turnover but it is a profit relatable to exports. Coming back to section 80HHC(1), if the assessee is an exclusive exporter without having any local sales, then the profit on commission is admittedly includible as profit of the business computed under the head „Profits and gains of business or profession‟ and the whole of it would....