TaxTMI 
TaxTMI 
2016 (8) TMI 96
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....nal is right in restoring the issues relating to computation of deduction under Section 80HHC of the Income Tax Act, 1961 with regard to export incentive of Rs. 88,22,127/, holding that the said sum will become part of the income from business? (B) Whether the Income Tax Appellate Tribunal is right in law and on facts in restoring the issue relating to duty free import benefit of Rs. 88,22,127/for the purpose of calculating deduction under Section 80IB of the Income Tax Act, 1961? (C) Whether the Income Tax Appellate Tribunal is right in law and on facts in restoring the issue relating to exclusion of salestax and excise duty from the total turnover for the purpose of computation of deduction under Section 80HHC of the Income Tax Act,....
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....s.115JA is not invoked. 3. Against the order of A.O., the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal by order dated 25.08.2003. Being dissatisfied with the order of CIT(A), the Revenue filed appeal before the Tribunal. By order dated 12.09.2008, the Tribunal partly allowed the appeal of the Revenue. Hence, this appeal at the instance of Revenue. 4. We have heard learned counsel for both the sides and perused the documents on record. 5. The issue raised in the form of Question No. (A) is covered by the Department's Circular No.564 dated 05.07.1990 wherein, it has been provided in Clause (5) under the head of "Clarifications regarding calculation of deductions" that cash compensatory support (CCS), ....
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....r Section 80HHC(3) as they do not have any element of "turnover", which is the position even in the case of rent, commission, interest, etc. Further, the excise duty and sales tax are indirect taxes. They are recovered by the assessee on behalf of the Government and therefore, if they are made relatable to exports, the formula under Section 80HHC would become unworkable. Learned Standing Counsel Mrs. Bhatt could not point out any distinguishing feature, which may warrant a different view. Thus, the Question No.(C) is answered in favour of the assessee and against the Revenue. 8. The issue raised in the form of Question No. (D) is also settled by the judgment of Apex Court in the case of Commissioner of Income-taxVII, New Delhi v. Punjab ....
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....puted under the head "Profits and Gains of Business or Profession" in accordance with provisions of Sections 28 to 44D. In the computation of such profits of business, all receipts of income, which are chargeable as profits and gains of business under section 28, will have to be included. Similarly, in computation of such profits of business, different expenses which are allowable under sections 30 to 44D, have to be allowed as expenses. After including such receipts of income and after deducting such expenses, the total of the net receipts are profits of the business of the assessee computed under the head "Profits and gains of business or Profession", from which deductions are to be made under clauses (1) and (2) of Explanation (baa). Lea....