2025 (12) TMI 1229

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....ellant is not entitled to relief under Section 80IA of the Income Tax Act? and (ii) Where on the facts and in the circumstances of the case, the Assessing Officer was justified in invoking the provisions of explanation (baa) to sub-section 4A of section 80HHC in respect of manufactured product as job work? 2. The appeals relate to assessment years 1999-2000, 2001-02 and 2002- 03 and the assessee is an exporter. 3. Mr.Sriram, learned counsel for the assessee and Mr.J.Narayanaswamy, learned Senior Standing Counsel for the revenue are ad idem on the position that the issue arising from the first substantial question of law is covered in favour of the assessee by a decision of this Court in Velayudhaswamy Spinning Mills (P) Ltd. ....

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....y, since the computation of business income resulted in a negative figure, the claim under Section 80HHC had been negated. The assessee succeeded in first appeal and the matter was carried by the Department before the Income Tax Appellate Tribunal ('Tribunal'). 7. The ground raised by the revenue before the Tribunal had been that while job work charges would stand encompassed within the head 'charges', 90% thereof would stand reduced from the ambit of 'profits of the business' in line with Explanation (baa) to Section 80 HHC. There is no infirmity in this. In order to effectively compute the deduction under Section 80HHC, it is necessary to take note of all other components of the formula as well. In doing so, the Tribunal has relied upo....