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2014 (8) TMI 385 - PUNJAB & HARYANA HIGH COURTDeduction u/s 80HHC - exclusion of service charges - Whether the Tribunal was right in law in holding that service charges to be excluded from the total turnover of the assessee while computing deduction u/s 80HHC – Held that:- Following the decision in Commissioner of Income-Tax v. Kadri Mills Ltd. [2013 (11) TMI 428 - MADRAS HIGH COURT] – 90 per cent of the sum has to be reduced from the gross total income, to arrive at the business profits - since the processing charges was an important component of the business profits, it has to be included in the total turnover in the formula to arrive at the business profits for computing deduction under clause (baa) of Explanation to Section 80HHC of the Act - service charges would be included in the total turnover and 90% of the service charges shall be excluded from the gross total income for arriving at the profits of the business for calculating the deduction u/s 80HHC of the Act – Decided against Revenue.
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