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2014 (12) TMI 806 - GUJARAT HIGH COURTDeduction u/s 80HHC - Exchange rate difference pertaining to exports made in earlier years was 'profits of business' or not – Held that:- Following the decision in Commissioner of Income-tax v. Priyanka Gems [2014 (3) TMI 938 - GUJARAT HIGH COURT] wherein it has been held that the source of the income of the assessee was the export - on the basis of accrual, income was already reflected in the assessee's account on the date of the export at the prevailing rate of exchange - the income was earned merely on account of foreign exchange fluctuation - such income was directly related to the assessee's export business and could not be said to have been removed beyond the first degree – thus, the assessee was entitled to deduction u/s 80HHC – Decided against revenue. Computation of deduction u/s 80HHC - interest received on fixed deposits should be netted or not – Held that:- Following the decision in ACG Associated Capsules Pvt. Ltd. v. Commissioner of Income-tax [2012 (2) TMI 101 - SUPREME COURT OF INDIA] wherein it has been held that ninety per cent of not the gross rent or gross interest but only the net interest or net rent, which had been included in the profits of business of the assessee as computed under the head "profits and gains of business or profession", was to be deducted under clause (1) of Explanation (baa) to section 80HHC for determining the profits of the business – thus, the order of the Tribunal is upheld – Decided against revenue.
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