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2017 (9) TMI 167 - HC - Income TaxTotal turnover in Section 80 HHC - turnover relating to the export business of the assessee OR a turn over relating to other businesses of the assessee - Assessee was running two units - ITAT held that the Assessee would be entitled to deduction under Section 80 HHC only if after the setting off brought forward losses and unabsorbed depreciation, the Assessee was left with any income and the deduction under Section 80 HHC should be worked out on the basis of the turnover of the garments division only - Held that:- The judgment of the Supreme Court in IPCA Laboratories vs. Dy. Commissioner of Income Tax, Mumbai, (2004 (3) TMI 9 - SUPREME Court) where it has been categorically held that “a plain reading of Section 80-HHC makes it clear that in arriving at profits earned from export of both sel-fmanufactured goods and trading goods, the profits and losses in both the trades have to be taken into consideration. If after such adjustments there is a positive profit the assessee would be entitled to deduction under Section 80-HHC (1)”. Thus the question framed is answered in the negative, i.e. in favour of the Revenue and against the Assessee.
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