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2004 (11) TMI 34 - HC - Income TaxDeduction u/s 80HHC – computing the profit – rectification - In the intimation u/s 143(1) AO accepted the assessee's calculation of relief u/s 80HHC taking the adjusted business profits as "nil" by ignoring the loss - Held that the question of relief under section 80HHC is a debatable issue, which does not fall within the purview of prima facie adjustment u/s 143(1)(a) and that could be taken up in regular assessment u/s 143(3) and action of the Revenue invoking section 154 to rectify the intimation under section 143(1)(a) is not valid - Whether Tribunal was right in holding that the loss sustained by the assessee from its export business should be ignored and he should get the benefit of section 80HHC even though there is no export profits?" - section 80HHC makes it clear that in arriving at profits earned from export, the profits and losses in the trade have to be taken into consideration and if after such adjustments there is a positive profit the assessee would be entitled to deduction under section 80HHC(1) and if there is a loss in trade then the loss has to be taken into account for the purposes of computing the profit
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