TMI Blog2003 (9) TMI 307X X X X Extracts X X X X X X X X Extracts X X X X ..... eign exchange was Rs. 22,35,280. The assessee had paid US $ 56,000 equivalent to Rs. 17,51,120 to M/s Oriental Tours, Hongkong, towards expenses of seminar group. The AO worked put the net foreign exchange received and brought in India by the assessee at Rs. 4,84,160 (Rs. 22,35,280 17,51,120). He observed that deduction under s. 80HHD is allowable on the net foreign exchange earning, i.e., gross receipts minus of expenses in foreign exchange, i.e., Rs. 4,84,160 in the present case. He added that the net foreign exchange brought intoIndiawas Rs. 4,84,160 only. In this connection the AO relied on Tribunal, Bombay Bench decision, in Tata Unisys Ltd. (Formerly Tata Burroughs Ltd.) vs. Dy. CIT (1993) 47 TTJ (Bom) 8 and Delhi High Court decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the issues were different. The issue in the case relied on by the AO was of deduction under s. 80-O and not deduction under s. 80HHD. 6. Learned CIT(A) was satisfied and convinced with the submissions made before him. He allowed resultant relief. He made the following observation in this regards "I have considered the arguments of learned counsel of the appellant and also the submissions made by the AO. Sub-s. 2 of s. 80HHD clearly states that this section applies only to services provided to foreign tourists and receipts in relation to which are received in or brought into India by the assessee in convertible foreign exchange within the period of six months from the end of the previous year etc. Sub-s. (3) of s. 80HHD further provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Representative on the other hand relied on the orders of learned CIT(A). He also drew our attention to the calculation of deduction under s. 80HHD as per the auditor's report and written submissions filed before the learned CIT(A). He contended that the claim of deduction of Rs. 2,82,991 was correct and allowable as per the law. 9. We have considered the rival submissions and materials on the files. We are of the view that on the facts and in the circumstances of the case and for the reasons given in the impugned appellate order, learned CIT(A) was justified in allowing the relief to the assessee as above. The calculation of admissible deduction under s. 80HHD has to be made in accordance with the provisions of s. 80HHD. The decision reli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emed to have been approved by the prescribed authority for the purposes of this section in relation to the assessment year commencing on the 1st day of April, 1989 or the 1st day of April, 1991, if the assessee was engaged in the business of such hotel or as such tour operator during the previous year relevant to any of the said assessment year. Sub-s. (2)................ Sub-s. (3) reads as under: For the purposes of sub-s. (1), profits derived from services provided to foreign tourists shall be the amount which bears to the profits of the business (as computed under the head 'profits and gains of business or profession') the same proportion as the receipts specified in sub-s. (2) bear to the total receipts of the business carried on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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