TaxTMI 
TaxTMI 
2002 (3) TMI 9
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....of Assam. It claimed deduction under section 80HHC of the Income-tax Act for the relevant assessment year 1989-90. The contention was that as the export profit is clearly detectable from the accounts maintained by the assessee, the procedure laid down under section 80HHC(3) need not be followed. The Assessing Officer was of the view that for the computation of the relief, the only basis should be to follow the rule in section 80HHC(3) after fixing the export turnover out of the total turnover, i.e, the turnover of tea from all the estates, including the estates in South India. On that basis the assessment was made and annexure A is the assessment order. The matter was taken up in appeal by the assessee before the Commissioner of Income-tax ....
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....0HHC of the Income-tax Act, should not the Tribunal have taken the total turnover of the entire business including the Assam Tea Estate since as regards the tea business is concerned, the business as a whole in respect of all tea estates has to be taken together and is not the direction to the assessing authority accordingly wrong and unwarranted?" We have heard Mr. P.K.R. Menon, learned counsel for the Revenue, and Mr. Jayasanker, learned counsel for the assessee. The material part of section 80HHC(3) as it stood then reads as under: "For the purposes of sub-section (1), profits derived from the export of goods or merchandise out of India shall be,- (a) in a case where the business carried on by the assessee consists exclusively of th....
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....profit derived by the assessee by export business is separately maintained and separately ascertained there is no need to have recourse to section 80HHC(3)(a) and (b). In such a situation section 80HHC(1) can be applied in exclusion of sub-section (3). Therefore, there was no need for invoking sub-section (3)(b) for finding out what should be the deduction under section 80HHC. Per contra, Mr. Menon, learned counsel for the Revenue, submits that this is the only provision that is provided under section 80HHC(1) of the Act. The mode of calculation pleaded by the assessee is not contemplated or provided by the statute. We notice from sub-section (3) that it points by words "for the purposes of sub-section (1), profits derived from the export....