TaxTMI 
TaxTMI 
TaxTMI 
2016 (11) TMI 727
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....s well as department and confirmed the order of CIT(A) which has partly allowed the appeal preferred by the assessee. 2. Though the question of law was framed but this Court vide order dated 10/10/2007 has reframed the question of law which reads as under:- "Whether on facts and circumstances of the case and in law, the Income Tax Appellate Tribunal was justified in confirming the disallowance of the deduction claimed under Section 80HCC relating to the interest income of Rs. 6,18,208/-?" 3. Counsel for the appellant has contended that in view of the decision of the Supreme Court in ACG Associated Capsules (P) Ltd vs. reported in CIT (2012) 247 CTR 0372 (SC). the netting of the benefit is required to be granted since for this issue, th....
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....racted above states that "profits of the business" means the profits of the business as computed under the head "Profits and Gains of Business or Profession" as reduced by the receipts of the nature mentioned in clauses (1) and (2) of the Explanation (baa). Thus, profits of the business of an assessee will have to be first computed under the head "Profits and Gains of Business or Profession" in accordance with provisions of Section 28 to 44-D of the Act. In the computation of such profits of business, all receipts of income which are chargeable as profits and gains of business under Section 28 of the Act will have to be included. Similarly, in computation of such profits of business, different expenses which are allowable under Sections 30 ....
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.... 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 assessess under Explanation (baa) to Section 80-HHC". 8. The Supreme Court in this case also referred to the earlier decision of the constitution bench in Distributors(Baroda) (P) Ltd. Vs. Union of India (1986) 1 SCC 43 Applied. And thereafter observed in para 16 and 17 as follows: "16. Similarly, Explanation (baa) has to be construed on its own language and as per the plain natural meaning of the words used in Explanation(baa), the words" receipts by way of brokerage, commission, interest, rent, charges or any other receipt of a sim....
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.... under the head "Profits and Gains of Business or Profession" is to be deducted under clause (1) of Explanation (baa) to Section 80-HHC, for determining the profits of the business. 9. In view of the aforesaid position, the questions of law mentioned above are answered in affirmative, in favour of the assessee and against the Revenue. The appeal is disposed of. No order as to costs." 5. Counsel for the respondents contended that there is concurrent finding and in view of decision of this Court in case of CIT & Ors. vs. Vimal Chand Surana & Ors. decided on 11/9/2015 and another decision in case of Reliance Trading Corporation & Ors. vs. The ITO, Jaipur & Ors. decided on 1/5/2015, the order of the Tribunal is required to be confirmed. 6....
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....und of the fact that the assessee is engaged in the business of exports and such business has been carried on during the relevant previous year. Obviously, the question of applying section 80HHC and the manner of computing the "profits of the business" of exports in accordance with Explanation (baa) will come in for consideration only if the export business has been carried on during the previous year." This decision of the Special Bench in the case of Lalsons Enterprises (supra) is also not helpful to the assessee because the assessees, in our view, in present matters, have thoroughly failed to establish beyond doubt that the interest earned on the deposit or advance was income from the export business. Hence, extending the benefit of d....