Home Case Index All Cases Income Tax Income Tax + SC Income Tax - 2008 (5) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2008 (5) TMI 285 - SUPREME COURTWhether in the, facts and circumstances of the case the Tribunal was right in holding that the deduction under s. 80HHC in respect of duty drawback and cash compensatory support is allowable even though no export was done by the assessee during the asst. yr. 1991-92? Held that:- The formula as indicated in s. 80HHC(3) itself shows that business profits include export incentives. This formula is also indicated in the circular issued by CBDT indicates that the Parliament as well as CBDT have taken into account the insertion of cl. (iiib) in s. 28, by the Finance Act, 1990. Further, it is also relevant to note that by the same Finance Act, 1990, cl. (iiib) was inserted into s. 28 and changes were also made in s. 80HHC(3). Therefore, s. 80HHC as it stood at the relevant time was required to be read with s. 28(iiib) because both the sections have been amended by the same Finance Act of 1990. This vital aspect has not at all been considered by the High Court. Thus the words "business profits" in the above formula under s, 80HHC(3) would include cash compensatory allowance and duty drawback and accordingly we direct the AO to work out the deduction in accordance with the law as it stood during the relevant asst. yr. 1991-92. Appeal allowed of assessee.
|