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2011 (4) TMI 879 - ITAT, MUMBAIDeduction u/s 80HHC - Erroneously turnover on account of cotton waste - Held that:- As full details have not been discussed by the AO or CIT(A) in this respect. Erroneously turnover on account of cotton waste from a different unit could not have been included in the total turnover for the purpose of allowing deduction u/s.80HHC in another unit. Therefore, in the interests of justice, set aside the order of the CIT(A) and remit the matter back to the file of the AO to verify whether the cotton waste has been generated from the same unit or otherwise and then decide the issue accordingly. Reduction of 90% of sundry creditors written back - As decided in CIT vs. Ravindranathan Nair [2007 - TMI - 2378 - Supreme Court of India] that all the receipts of other nature which have no connection with the export activity have to be excluded from the business profits for the computation of deduction u/s.80HHC. Thus 90% of weight receipts, market development assistance and central sales tax refund have to be excluded from the business profits for the purpose of computing deduction u/s.80HHC - Decided against the assessee DEPB license fee - deduction u/s.80HHC - Held that:- The DEPB scheme was not even in existence when clause (iiib) came to be enacted into Section 28 by the Finance Act of 1990. The DEPB scheme was brought into existence with effect from 1 April 1997. Clause (iiid) of Section 28 was inserted by the Amending Act of 2005 with effect from 1 April 1998. The value of the DEPB credit can by no means be regarded as a cash assistance which is received or receivable by a person against exports under any scheme of the Government of India - Decided against the assessee. Reducing 100% of DEPB license sales amount from profits of business while allowing deduction u/s.80HHC instead of at 90% - Held that:- Issue decided against assessee relying on CIT vs. Kalpataru Colour and Chemical [2010 (6) TMI 63 - BOMBAY HIGH COURT]
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