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2010 (9) TMI 467 - ITAT, MUMBAIDeduction u/s 80HHC - Assessee carried on its business from different units including one at Verna, Goa. Deduction was claimed under section 80-IB at 100 per cent of the profits in respect of Goa unit - Company reduced from the “profits of the business” and “total turnover”, the amounts of profits and turnover of the Goa Unit so as to make the formula under section 80HHC workable - The ld. CIT did not concur with the submissions advanced on behalf of the assessee, as in his opinion section 80-IB(13) read with section 80-IA(9) restricted further deduction in respect of profit on which deduction under section 80-IA/80-IB was already allowed and it did not speak of taking the reduced turnover while computing deduction under section 80HHC - The reason for so holding is the very rationale of allowing deduction under section 80HHC in respect of the profits derived from export turnover The assessee reduced exchange loss of export realisation amounting to Rs. 35.56 lakhs from the total turnover of the business for the purposes of computing the deduction under section 80HHC - In the opinion of the ld. CIT such reduction from total turnover in respect of exchange loss of export realisation was not permissible - From the computation of deduction made by the assessee, it is seen that the export turnover has been shown at realised value - It is simple and plain that with the reduced realisation of export proceeds, the figure of export turnover came down with exchange loss on export realization - As the export turnover is part and parcel of total turnover, it cannot have two values, firstly, when considered as separate from total turnover and secondly, when constituting part of total turnover – Decided in the favour of the assessee
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