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2013 (7) TMI 120 - HC - Income TaxDeduction u/s 80HHE - Exclusion 90% of gains on foreign exchange fluctuations from the business profits - Held that:- amount which is sought to be attributed as gain from fluctuation of foreign exchange no-doubt might have been due to some fluctuation but as these are amounts received in Indian currency as the total amount that an exporter receives ultimately for the export of the goods, it should be taken together with the value of the goods itself in which event - Even the amount said to be attributable to the fluctuation in the foreign exchange rate forms part of the value of the export goods and cannot be distinguished there from - If the fluctuation in foreign exchange brought down the value, an assessee cannot claim that this amount should be excluded and the export value maintained at a higher figure - there is no occasion to exclude 90% of the amount attributable to export gains from the foreign exchange rate fluctuation - Decided in favour of assessee. Allowance of cross objection - Reduction in business profits unabsorbed depreciation and unabsorbed losses - Held that:- deduction can be claimed only against positive profits and positive profit necessarily implies the adjustments and set off of the depreciation allowance of earlier years and carried forward losses of earlier years and that Judgment having the binding effect on this court, it has to be necessarily ruled that the benefit under section 80HHC of the Act can be claimed only after the unabsorbed depreciation of the earlier years is adjusted against the profits of the current year and then only the benefit extended under section 80HHC of the Act can be given effect to - Following the decision of J.K Industries Ltd V/s Joint Commissioner of Income Tax [2013 (5) TMI 152 - KARNATAKA HIGH COURT], decided against the assesee.
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