Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (4) TMI 357 - AT - Income TaxReopening - Deduction u/d 80HHC - assessee, an individual, is in the business of cashew exports as well as running a hotel - whether the processing charges has to be excluded in arriving at the figure of 'total turnover' while computing the export profit u/s. 80HHC(3) - In fact, not only is the said case of a cashew exporter, i.e. as the assessee, as it would appear, the same is only in the assessee's own case (for A.Y. 1993-94) in-as-much as the apex court thereby decided the Revenue's appeal against the decision by the Hon'ble Kerala High Court in the case of CIT v. K. Rajendranathan Nair [2007 -TMI - 2378 - Supreme Court of India] - The apex court per the same has abundantly clarified that the 'processing charges' is an 'independent income' like brokerage, commission, rent, charges, etc. forming part of the gross total income (GTI), being business profit, though having no nexus with the export and, accordingly, is to be deducted at 90% thereof The assessee has, however, raised an alternative plea, claiming that even if so, it is only the income from the processing charges, and not the gross receipt by way of processing charges, that has to be excluded under Explanation (baa) - once 'processing charges' has been held to be an 'independent income', i.e., as rent, commission, brokerage, etc., like treatment in its respect would follow - Held that: The onus, however, to establish the said profit included in the GTI would only be on the assessee, so that in its absence, the statutory prescription in its respect would follow. The matter is accordingly restored back to the file of the AO - Appeal is partly allowed
|