TaxTMI 
TaxTMI 
2022 (2) TMI 1033
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....8 and 1998-99. The appellant -assessee under the Income Tax Act, 1961[IT Act] is engaged in manufacture and sale-export of Calcined Petroleum Coke (CPC). In the regular course of assessment, the Assessing Officer had disallowed deduction by appellant following directions issued by Commissioner of Income Tax under section 263 holding that product exported by the assessee as 'mineral oil'. While the matter was taken by the appellant to High Court,the High Court by common Judgment and order held that CPC manufactured by the appellant is not mineral oil within the meaning of section 80HHC (2) (b) (i). 2. While giving effect to aforesaid order, the Assessing Officer partially allowed the claims of the appellants under section 80HHC of t....
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....earned income from the same. He contends that the authorities hitherto have not discussed the grounds raised by the appellant that the lease income from business operations are neither rent nor commission or charges or any other receipts of the nature as contemplated in Explanation (baa) to section 80 HHC and as such matters be remanded. 4. It is the contention of learned Advocate, Ms. Susan Linhares, appearing for the respondent-revenue that, it is undisputed position, income earned from hiring plant and machinery has no nexus to the export by the appellant and that it is only the net income and not the gross one is to be deducted pursuant to Explanation (baa) to Section 80HHC. 5. She submits, the Assessing Officer has found that not ent....
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....ed that rental income from leasing out plant and machinery is hit by Explanation (baa) to Section 80HHC of the IT Act in computation of total income. 9. The Appellate authorities have also considered that it is net of the lease income from plant and machinery and not the gross income which is to be considered for exclusion from profits of business (while computing deduction under section 80HHC in accordance with Explanation clause (baa)). 10. The Revenue is not in appeal so far as 90% of income, from leasing plant and machinery, is to be taken into account for exclusion from profits of business. 11. The assessee has derived income from leasing out plant and machinery. The Supreme Court in Ravindranathan Nair's case (2007) 15 SCC 1, h....