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2017 (8) TMI 1410 - RAJASTHAN HIGH COURTEstimation of the gross profit - Tribunal not deducting and giving benefit of increased excise rate at 8.18% - Held that:- As counsel for the respondent Mr. Mathur has supported the order of the Tribunal and contended that the view taken by the Tribunal is just and proper. The deduction is to be considered for last three years GP and for the last five years the GP will come down to more than 30%. GP rate fixed by the Tribunal at 25% is required to be accepted. Even if we take the GP rate fixed by the Tribunal, the original rate of 31% will be reduced to 28.86% therefore, for assessment year 2003-04 it will come down, as per the order of AO to 23.96%. However, the Tribunal has seriously committed an error in not deducting and giving benefit of increased excise rate at 8.18% therefore, profit will come down to 40.78%. Thus since the assessee has already disclosed 21.33% the same is required to be accepted. The order of the Tribunal and AO is modified to the aforesaid extent. The return filed by the assessee will be accepted and issue no. 1 will also answered in favour of the assessee. Interest receipt not constitute “business income” for the purpose of computation of deduction u/s 80HHC - Held that:- It was not necessary to refer to the explanatory Memorandum when the language of Explanation (baa) to Section 80HHC was clear that only ninety per cent of receipts by way of brokerage, commission, interest, rent, charges or any other receipt of a similar nature included in such profits computed under the head profits and gains of business of an Assessee could be deducted under Clause (1) of Explanation (baa) and not ninety per cent of the quantum of any of the aforesaid receipts which are allowed as expenses and therefore not included in the profits of business of the assessee - Issue decided in favour of assessee - See ULTRATECH METALS INDIA VERSUS ACIT AND VICE-VERSA [2017 (5) TMI 1587 - RAJASTHAN HIGH COURT].
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