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2010 (7) TMI 631 - HC - Income TaxDeduction u/s 80HHC - excise duty and sales tax - apex court in the case of CIT v. Lakshmi Machine Works (2007 -TMI - 6557 - SUPREME Court) has held that: Commission, interest, rent, etc. do yield profits, but they do not partake of the character of turnover and, therefore, they were not includible in the `total turnover - Decided in the favour of the assessee Regarding the receipts by way of commission to be reduced in the profits of business is concerned - the income from commission is concerned, if any expenses is expended in earning the said income under section 37 of the Act, the said expenses is deductible and after such deduction, the amount arrived at would become part of the profits and gains of business - The very basis for computing section 80HHC deduction was "business profits" as computed under section 28, a portion of which had to be apportioned in terms of the above ratio of export turnover to total turnover - If the assessee has two incomes with "one common pool of expenses" and since "principle of attribution" has been retained in the scheme of section 80HHC, both in terms of section 80HHC(3) - Decided in the favour of the assessee Regarding bad debt - Supreme Court in the case of T. R. F. Ltd. v. CIT (2010 -TMI - 76626 - SUPREME COURT) has held that after April 1, 1989 it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable; it is enough if the bad debt is written off as irrecoverable in the accounts of the assessee - Decided in the favour of the assessee
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