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2011 (9) TMI 985 - AT - Income TaxDeduction in respect of 90% of DEPB and DFRC benefits are not allowable u/s 80HHC - Held that:- The amount of sales tax subsidy is to be excluded for the purpose of computing profits of business u/s 80HHC of the Act. We, therefore, do not find any merit in this ground of appeal and dismiss the same. The amount of ₹ 31.42 lacs has been received on early payment made by the assessee for the goods purchased which is directly linked to the export turn over of the assessee. The amount in question is not covered by the provisions of clause (baa) below Explanation to section 80HHC (4C). In that view of the matter, the CIT(A) has correctly directed the Assessing Officer not to exclude 90% of discount received i.e. ₹ 31.92 lacs from profits of the business for the purpose of computing deduction u/s 80HHC of the Act.
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