2016 (9) TMI 113

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....question of law: "Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by CIT (A) in directing not to exclude 90% of Excise refund (Mfg.), Excise refund (Merchant), insurance claim from the profit of the business for calculation of deduction u/s. 80HHC?" 3. Learned Counsel for the Department has drawn attention of this Court to the paragraph No.3.5 and 3.7 of the order passed by the CIT (A) which reads thus: "3.5 It is submitted that 2 items of excise duty refund credited in the profit and loss account, namely, Rs. 2,61,86,008/and Rs. 35,43,570/in respect of the Manufacturing Division and Merchant Division. It is submitted that said refund is in respect of excise duty debited in the....

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.... computation of deduction under Section 80HHC, 90 per cent of income relatable to rent, computer, charges, services charges, miscellaneous income and insurance claim was required to be deducted from the profits. He, therefore, contended that the Tribunal seriously erred in confirming the order of CIT (A). 5. On the other hand, learned Counsel for the respondentassessee has invited the attention of this Court to a decision in case of ACG Associated Capsules (P.) Ltd. v. Commissioner of Incometax, CentralIV, Mumbai [2012] 18 taxmann.com 137 (SC) and he relied upon paragraph No.10 of the said decision which reads thus: "10. Under Clause (1) of Explanation (baa), ninety per cent of any receipts by way of brokerage, commission, inter....