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2015 (5) TMI 190 - HC - Income TaxStickering income received from MRF for labeling 'MRF' on the toys and packing - Eligibility of business income for the purpose of deduction under Section 80HHC - Held that:- In the case on hand, it is evident from the records that the nature of activity carried on by the respondent/assessee and the receipts realised therefrom by the assessee/respondent does not fall under any of the heads mentioned in Explanation (baa) to Section 80HHC and, therefore, the provisions of Explanation (baa) to Section 80HHC does not stand attracted to the receipts received by the respondent/assessee. The decision of the Bombay High Court in Bangalore Clothing Co. case (2003 (1) TMI 89 - BOMBAY High Court ), relied on by the Tribunal is squarely applicable to the facts of the present case. Further, the decision in K.R.M. Marine Exports Ltd. - Vs - ACIT (2006 (1) TMI 116 - MADRAS High Court), on which reliance was placed by the Department, the Tribunal held that in para-20 of the said decision, it has been categorically held that operational activity is one of the parameters for grant of benefit under Section 80HHC. In the case on hand, the activity of the assessee in carrying out labelling 'MRF' on toys using its machinery would squarely fall within the ambit of operational activity. Tribunal was right in holding that the stickering income received from MRF for labeling 'MRF' on the toys and packing, as eligible business income for the purpose of deduction under Section 80HHC - Decided in favour of assessee.
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