2000 (8) TMI 242

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....ith 10% of the export incentive to arrive at the allowable deduction. The claim was rejected by the Assessing Officer and action of the assessee in ignoring the loss and taking at nil was not considered by the Assessing Officer in accordance with sub-section (3) of section 80HHC. The Assessing Officer was of the view that profit also means loss as in any other section of Income-tax Act. 4. In the first appeal, it was submitted that section 80HHC(3) did not state that profit also included loss and proviso to section stated that the profits computed under clause (a) or (b) or (c) of the sub-section shall be further increased by this amount which bore 90% of any sum referred to in clauses (iiia), (iiib) and (iiic) of section 28 of the Incom....

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....sum of profit under section 28 in proportion as the export turnover bore to the total turnover of the business carried on by the assessee. He also relied on the order of the Hon'ble Supreme Court in the case of CIT v. Canara Workshops (P.) Ltd [1986] 161 ITR 320 and also the order of the Hon'ble ITAT, Cochin Bench in the case of Usha (Smt. T.C) v. Dy. CIT [1999] 106 Taxman 305 (Mag.). 7. In his rival submission the Ld. D.R. relied on the orders of the authorities below and also mentioned that the cases relied by the Ld. A.R. were having different facts, so not related to the instant case. He further submitted that the method adopted by the Assessing Officer was correct and should be upheld. 8. We have heard both the parties and also p....

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....osts and indirect costs attributable to such export.' It is also provided in sub-section (3) of section 80HHC that - 'The profits computed under clause (a) or clause (b) or clause (c) of this sub-section shall be further increased by the amount which bears to ninety per cent of any sum referred to in clause (iiia) (not being profits on sale of a licence acquired from any other person), and clauses (iiib) and (iiic) of section 28, the same proportion as the export turnover bears to the total turnover of the business carried on by the assessee." It is crystal clear as per proviso to sub-section (3) of section 80HHC that the profit computed under clause (b) shall be further increased, but in the instant case, the profit computed under....