2001 (3) TMI 246

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....r of assessment denying relief under s. 80HHC of the Act to the assessee on the interest receipts. 2. The assessee is a registered firm. The assessment year is 1991-92. The assessee is in the business of purchasing timber from forest and processing it and then selling the same. The sales include export sales and also local sales. In the P&L a/c, the assessee had credited a sum of Rs. 20,30,734 ....

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....under s. 80HHC. Aggrieved, the assessee appealed. Relying on various decisions of High Court, the CIT(A) upheld the action of the AO in disallowing the claim of the assessee. Hence, this further appeal before us. 3. At the time of hearing before us, the learned counsel for the assessee, fairly conceded that there are decisions of various High Courts against the assessee on this issue, and also ....

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....s. 80HHC. The deduction under this section is allowable in respect of an assessee engaged in the business of export out of India of any goods or merchandise to which this section applies and the deduction is in respect of 'profits derived by the assessee' from the export of such goods or merchandise. The key expression here 'derived from' has been the subject-matter of controversy in the context o....

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....ection between the business of the industrial undertaking and the income on which deduction under ss. 80HH or 80-I is claimed. The same expression 'derived from' is available in s. 80HHC and, therefore, the ratio of the decision of the Supreme Court in the above mentioned case applies with equal force in the context of claim of deduction under s. 80HHC, the only difference being that in the case o....