TaxTMI 
TaxTMI 
2002 (10) TMI 43
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....f deduction under section 80HH of the Income-tax Act, 1961 ?" The assessment year is 1986-87. The items referred to in the question are matters which have been considered in the decision of this court in the case of CIT v. Jameel Leathers and Uppers [2000] 246 ITR 97. The court held that cash assistance, duty drawback and import entitlements though undoubtedly attributable to business carried on by the assessee as the assessee would not have been in a position to receive any of those benefits, had the assessee not been carrying on business, it cannot be said that such income was "derived from" business as to qua1ify for deduction under sections 80J and 80HH of the Act. The court reviewed the applicable law before so holding and referred t....
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....rom" being narrower than the scope of the term "attributable to". Learned counsel for the assessee, however, submitted that the Central Board of Direct Taxes itself had, on July 5, 1990, issued a circular giving certain clarifications relating to deductions under section 80HHC of the Income tax Act, 1961, wherein it was stated that in view of the amendment to section 28 of the Income-tax Act, by the Finance Act, 1990, by which clauses (iiia), (iiib) and (iiic) were inserted with retrospective effect, those three import incentives will have to be included in the profits of the business for computing the deduction under section 80HHC. An illustration has also been given in that circular to further clarify the clarification. In the present....