2004 (8) TMI 13

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.... questions of law are as follows: "(1) Whether, on the facts and circumstances of the case, the Tribunal was justified in entertaining the additional ground raised by the assessee on an issue which had not been disputed earlier before the Assessing Officer or the first appellate authority? (2) Whether, on the facts and circumstances of the case, the Tribunal is right in law in holding that the payment received from the export houses under the agreements could not partake of the nature of receipt towards 'charges' mentioned in clause (baa) of Explanation to section 80HHC? (3) Whether, on the facts and in the circumstances of the case, and on an interpretation of section 80HHC(3) would the assessee be entitled to the deduction in an ....

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....) where the export out of India is of goods or merchandise manufactured by the assessee, the profits derived from such export shall be the amount which bears to the profits of the business, the argument made by learned counsel for the assessee that if the profit derived from export under clauses (a), (b) and (c) of sub-section (3) of section 80HHC of the Act is a negative figure, it shall be ignored and the positive figure computed under the proviso has to be allowed as a deduction. According to the Commissioner of Income-tax (Appeals), the view taken by the Assessing Officer was correct. He held that since there was no profit, the assessee is not entitled to any benefit under section 80HHC of the Act. The matter was taken before the App....