9911796707
TMI Blog2001 (3) TMI 255X X X X Extracts X X X X X X X X Extracts X X X X ..... O was not correct in applying the Explanation to s. 80HHC for computation of profit or business thereby reducing the profit under s. 80HHC. (iii) directing the AO to charge interest under s. 234B only upto date of determination of income under s. 143(1)(a)." 2. We have heard both the parties at length in respect of the grounds raised and coming straightaway to ground No. 1, it is an accepted position between the parties that the CIT(A) in the year under consideration followed the order passed by his predecessor for the asst. yr. 1990-91. It is also an accepted position between the parties that the Revenue although filing second appeal to the Tribunal for asst. yr. 1990-91, accepted the order of the CIT(A) vis-a-vis the point at issue rais ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tute itself. Income from business or profession has to be computed under ss. 28 to 44D. It is only after that business income can be quantified. Similarly, computation of income from house property is governed by ss. 22 to 27 and computation of capital gains has to be made in accordance with ss. 45 to 55A. After the computation procedure is over, income under the different heads are summed up. The summed up figure is known as gross total income. Deduction under Chapter VI-A follows. It is only after this process, the total income of the assessee is calculated and thereafter benefit of B.F. losses, unabsorbed depreciation and unabsorbed investment allowance is to be given. Principles of carry-forward and set off are clear in the Act. Benefit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 46 ITR 429 (Bom). Accordingly to the learned counsel for the assessee, the benefits of Chapter VI-A were required to be given first before any brought forward losses or unabsorbed claims could be set off. The further plea was to the effect that there was no decision of any Court taking a view to the contrary vis-a-vis the decision of the Hon'ble Bombay High Court supra and the learned counsel for the assessee stressed that the learned Departmental Representative in fact had not referred to any judgment to the contrary. 5. After considering the rival submissions, we are of the view that no interference is warranted in the order passed by the CIT(A) vis-a-vis the first limb in the ground raised by the Revenue and respectfully following the j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness are required to be computed on the basis of ss. 28 to 44D. It excludes s. 72. This is because the legislature wants the profits of the current year to be taken into account. The object appears to be to give maximum benefit to the exporter who earns foreign exchange for the country and to encourage exports. Therefore, even though s. 80AB contemplates a non obstante clause, the said s. 80AB will be subject to s. 80HHC to the extent of export profits being worked out from business profits. While s. 80AB refers to computation based on income, s. 80HHC refers to computation based on export turnover." 6. Coming to the second limb of the ground, we really wonder as to what relief the Department is asking for when it states in the second lim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts or in law in respect of the directions of the CIT(A) although during the course of the hearing of the appeal, the learned counsel for the assessee referred to the judgment of the Hon'ble Supreme Court in the case of CIT vs. Ranchi Club Ltd. (2000) 164 CTR (SC) 200 contending that no interest could be charged since the returned income was nil. We would like to make it clear at this stage that it is the Revenue which is in appeal before the Tribunal and we have upheld the view taken by the CIT(A) rejecting the relevant ground and the assessee at this stage cannot seek any relief over and above what has already been allowed by the first appellate authority since it is not a cross-objector or in cross-appeal before the Tribunal. In case, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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