TMI Blog2014 (8) TMI 385X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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. - C.M. No. 2335-CII of 2008 and ITA No. 98 of 2008 - - - Dated:- 6-3-2014 - Ajay Kumar Mittal And Anita Chaudhry,JJ. For the Appellant : Mr. Rajesh Katoch, Advocate. For the Respondent : Mr. Sanjay Bansal, Senior Advocate with Ms. Rajni Paul, Advocate. ORDER Ajay Kumar Mittal, J. C.M. No. 2335-CII of 2008 Application is allowed and the delay of 458 days in re-fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e computing deduction u/s 80HHC? 3. Briefly, the relevant facts necessary for disposal of the present appeal as relating to question No. (iii) only as narrated therein may be noticed. The assessee is a manufacturer and exporter of cotton yarn, woollen hosiery garments and also trades in cotton yarn. It filed the return of income on 30.11.2000 for the assessment year 2000-01 declaring the income at ₹ 9,92,49,470/-. The Assessing Officer vide order dated 30.7.2002 (Annexure A-1) framed the assessment at ₹ 11,95,87,260/-. The Assessing Officer treated service charges as part of total turnover. It was further observed that in case the plea of the assessee that it did not form part of total turnover is accepted, then the income f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt in Commissioner of Income-Tax v. Kadri Mills Ltd. (2014) 360 ITR 595 (Mad) following the judgments of the Hon'ble Apex Court in Commissioner of Income Tax v. Ravindranathan Nair (2007) 295 ITR 228 (SC) and ACG Associated Capsules Pvt. Ltd. v. Commissioner of Income Tax (2012) 343 ITR 89 (SC) had held as under:- Even from the reading of the order of the Income Tax Appellate Tribunal, it is clear that the issue raised herein is only as to whether 'net conversion charges' has to be considered under clause (baa) of Explanation to Section 80HHC of the Act in the adjusted business profits for computation of deduction and the question is not on the gross conversion charges. In the decision reported in ACG Associated Capsules ..... X X X X Extracts X X X X X X X X Extracts X X X X
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