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2016 (10) TMI 400 - HC - Income TaxRelief under Section 80-HHC allowable while arriving at the book profits as per Clause (vii) of Explanation to Section 115-JA(1) - assessee itself had not claimed the deduction under Section 80-HHC in the normal computation - Held that:- For the purpose of providing the incentive contemplated under Section 80-HHC, the profits earned from the export business, which might include, in a given case, exports carried out of the goods manufactured by the assessee as well as by trading the goods manufactured by others, and the lossess sustained in any one of these branches of exports business, are liable to be adjusted against the profits earned by the other branch of export business. A reading of the principles enunciated by the Supreme Court in the cases of Ajanta Pharma Ltd. (2010 (9) TMI 8 - SUPREME COURT ) and Jeyar Consultant and Investment Pvt. Ltd. (2015 (4) TMI 195 - SUPREME COURT), it becomes crystal clear that the Tribunal has arrived at an incorrect comprehension of the spheres assigned respectively by Section 80-HHC and Section 115-JA of the Income Tax Act. Therefore, the impugned order passed by the Tribunal is not sustainable. Since the assessee-Company has not been provided with an opportunity to demonstrate that they did Return the profits from their export business for the assessment year concerned, which profits of export business, are set-off against the carry forward lossess sustained in the business, as a whole for the previous year, resulting in taxable income being Returned as "Nil" and also for the purpose of computation of book profits under Section 115-JA, the extent of profits made by the assessee from the export business, has got to be looked into and taken into consideration and since that aspect of the matter has not been dealt with by the Tribunal, we set aside the impugned order passed by the Tribunal and remit the matter back to the Tribunal for consideration afresh by it in accordance with law.
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