TMI Blog2006 (4) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... y profit, the assessee is not entitled to deduction under section 80HHC. In that view of the matter, the Tribunal has committed serious error in interfering with the order passed by the Commissioner disallowing deduction - 901 of 1998 - - - Dated:- 18-4-2006 - P. VISHWANATHA SHETTY and N. KUMAR JJ. M. V. Sesachala for the applicant. S. Parthasarathi for the respondent. JUDGMENT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot derive any profit from this transaction. The Income-tax Officer allowed the claim of deduction under section 80HHC of the Act at Rs. 15,81,389. The Commissioner of Income-tax, in exercise of his power under section 263 of the Act, held that the assessee has not derived any profit from export of commodities and therefore, the assessee is not entitled for deduction under section 80HHC of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If there is a loss, the assessee would not be entitled to deduction Further, it has been held that a plain reading of sub-section (3) (c) of section 80HHC of the Act shows that profits from such exports have to be profits of exports of self-manufactured goods plus profits of exports of trading goods. The opening words "profit derived from such exports" together with the word "and" clearly indicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l has committed serious error in interfering with the order passed by the Commissioner disallowing deduction. 6. In the light of what is stated above the question of law referred for our opinion is answered in the negative against the assessee and in favour of the Revenue. 7. In terms stated above, this reference is disposed of. However, no order is made as to costs. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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