2006 (6) TMI 100

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y drawback, service charges and rent received cannot be included in the profit for the purpose of computation of relief under section 80HHC of the Income-tax Act?" The assessment year in question is 1991-92. The assessee claimed deduction on export profit under section 80HHC of the Income-tax Act. While taking the gross profit of Deckiajuli Estate for the purpose of computation of relief under section 80HHC(3)(b) the assessee has taken into account the following items of income: -----------------------------                        Rs. Agency commission   6,46,630 Duty drawback     &n....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....0HHC was not allowable on a proportion of all profits and receipts from various business activities of the assessee. In support of this contention counsel placed reliance on the decision of this court in CIT v. V.T. Joseph [1997] 225 ITR 731. The apex court in IPCA Laboratory Ltd. v. Deputy CIT [2004] 266 ITR 521 examined the scope of sections 80AB, 80B(5) and 80HHC and held that a plain reading of section 80HHC makes it clear that in arriving at profits earned from export of both self-manufactured goods and trading goods, the profits and losses in both trades have to be taken into consideration. The court held that section 80HHC has been incorporated in the Income-tax Act, 1961, with a view to provide incentive for earning foreign excha....