2004 (7) TMI 13

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....ch are mostly exported abroad and these exports entitled it to deduction under s. 80HHC. While completing the assessment for asst. yr. 1992-93, the AO excluded machinery, hire charges and building rent from the business income of the assessee and consequently reduced the claim for deduction under s. 80HHC of the Act. 3. Assessee preferred an appeal before the CIT(A) who, by following the orders of his predecessors in the earlier years, held that the AO was not justified in excluding the receipts of hire charges, machinery, plant and building rent from the purview of business income and thereby reducing the claim for deduction under s. 80HHC of the Act. 4. On further appeal by the Revenue, the Tribunal observed that the issue about the....

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....he profit of the business has been defined under this Explanation according to which it should be the profits and gains of business or profession as reduced by 90 per cent of any sum referred to sub-s. 3(a)(b) and (c) of s. 28 or any receipts by way of brokerage, commission, rent, charges or any other receipt of a similar nature included in such profits. No doubt, the hire charges receipt in the present case may be part of the profits and gains of the business of the assessee but for computing the profit of the business in order to determine the legible deductions under sub-s. (3) of s. 80HHC, 90 per cent of the same will be reduced from the profits and gains of the business. Accordingly, we are of the considered opinion that the profits of....