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2014 (5) TMI 551 - CALCUTTA HIGH COURTDifference between section 80HHC and 80HHE of the Act - Whether there is any material difference between Section 80HHC(3) and Section 80HHE(3) of the Act – Held that:- Section 80HHC is a provision intended to encourage export of any goods or merchandise except minerals and mineral oil – the provision is general in nature - If there was no material difference between Sections 80HHC and 80HHE, there was no reason to legislate Section 80HHE because export of computer software in any event would have been covered by Section 80HHC – there is no reason to treat them identically nor is it open to hold that there is no material difference between the language of 80HHC(3) and that of Section 80HHE(3) - There may not be any material difference between sub-Section 3 of each of the sections but they certainly operate in different fields – Decided in favour of Assessee. Determination of admissible deduction u/s 80HHE(1) of the Act - Whether the turnover and profit or loss arising out of the business of gear box etc. is to be taken into account for the purpose of determining admissible deduction u/s 80HHE(1) of the Act – Held that:- The turnover of business which can be taken into account is only the turnover of the computer software or in respect of providing technical service as the case may be - Any reference to Section 80HHC for the purpose of understanding the mechanism of sub-Section (3) of Section 80HHE is likely to lead to wrong conclusion - The object of providing the mechanism in sub-Section 3 for the purpose of computing the profits was to provide adequate safeguard to prevent jugglery or manipulation of the books of account - in order to stop any such attempt, the legislature has provided for a special mechanism for the purpose of assessing the profits from out of which deductions can be claimed - Deductions were obviously provided for in order to generate foreign exchange - neither the turnover nor the profit nor loss arising out of the business activity relating to gear box had anything to do with the computation of the admissible deduction u/s 80HHE (3) of the Act – Decided in favour of Assessee.
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