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2010 (9) TMI 784 - AT - Income TaxDeduction u/s 80HHF - export profit - business of making television software and telecast on Doordarshan and other channels. - computation of deduction - held that:- profits computed under the head 'Profits and gains of business or profession' would include not only the profit from the business referred to in sub-section (1) but would also include the profit from other business activities - the profits derived from such business under section 80HHF are to be calculated by multiplying 'export turnover' with the 'profits of the business' as divided by the 'total turnover of the business'. 'The business' in the present context, means the composite business of the assessee of producing and purchasing TV serials and then earning income by way of their commercial exploitation whether from export or domestic market inter alia including that from slot charges. Deduction of unrealized foreign exchange from export turnover and total turnover - held that:- The figures of export turnover and total turnover play pivotal role in such calculation. - it would be just and fair if the impugned order is set aside on this issue and the matter is sent back to the Assessing Officer for deciding the amount includible in the figures of total and export turnover out of the export debtors as at the end of the year as per law. Thereafter the Assessing Officer will re-compute the amount of relief under section 80HHF in accordance with our above directions after allowing a reasonable opportunity of being heard to the assessee. Depreciation on office premises - occupation through purchase of shares purchase of shares and construction contribution - held that:- payments are aimed at acquiring, using and occupying the property. But for the purchase of shares it is not permissible to become member. In the like manner paying construction contribution is also a pre-requisite for becoming the member of WRPL. Unless any person desirous of obtaining, using and occupying the property purchases shares and makes contribution towards construction, he cannot become the member of the company. Both the payments are directed towards acquiring one composite right. As such it is not possible to view these two payments separately and consider the construction contribution as part of block of asset leaving aside the consideration for shares. We, therefore, hold that by making total payment of Rs. 4.44 crores the assessee became entitled to obtain use and occupy the requisite premises and hence became owner of the premises for the purpose of section 32(1). - Claim of depreciation allowed.
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