2006 (4) TMI 115

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....f the court was delivered by N. KUMAR J.— At the instance of the Revenue, the Income-tax Appellate Tribunal, Bangalore Bench, has referred the following question of law for our opinion, under section 256(1) of the Income-tax Act, 1961, (for short hereinafter referred to as "the Act"). "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that....

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.... appeal filed by the assessee, the Tribunal held that the deduction is allowable under section 80HHC of the Act. 3. Thus, at the instance of the Revenue, the aforesaid question of law is referred for our opinion. 4. We have heard learned counsel appearing for the parties. The question referred for our opinion is no longer res integra. The Supreme Court in the case of IPCA Laboratory Ltd. v. ....

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....ofits have to be calculated by counting both the exports. Deduction can be permitted under section 80HHC(1) only if there is a positive profit in the exports of both self-manufactured goods as well as trading goods. If there is a loss in either of the two, then the loss has to be taken into account for the purposes of computing the profits. 5. In the instant case, admittedly the assessee purcha....