TMI Blog2008 (8) TMI 576X X X X Extracts X X X X X X X X Extracts X X X X ..... as a result of transfer - Held that: - 80HHC stipulates a deduction in respect of export profits - Assessing Officer to compute such export profits from out of the consolidated amount of income of the asses-see, which may involve income by way of interest, rent, commission, etc., the Legislature has provided a simple procedure under which 90 per cent. of the receipts such as interest, rent, commission, brokerage, etc., shall be excluded as profits not attributable to exports - Assessing Officer to compute such export profits from out of the consolidated amount of income of the asses-see, which may involve income by way of interest, rent, commission, etc., the Legislature has provided a simple procedure under which 90 per cent. of the receip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per cent of the gross interest and commission from the profits of the business. The assessee claimed long-term capital loss in a sum of Rs. 52,38,048. The Assessing Officer restricted the same to Rs.15,19,248. The reduction in the loss was due to the increase in the deemed sale consideration in a sum of Rs. 37,17,900 in respect of the pro-perties sold at Kodaikanal and Chennai by adopting the value determined by the stamp duty authorities under section 50C of the Income-tax Act. Aggrieved by the order of the Assessing Officer, the assessee carried the matter on appeal to the Commissioner of Income-tax (Appeals), who by his order dated March 16, 2007 confirmed the order of the Assessing Officer in respect of the abovesaid two claims. Howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness as computed under the head `Profits and gains of business or profession'. While computing such profits under the head `Profits and gains of business or profession' if any receipt by way of brokerage, commission, interest, rent, charges or any other receipt of a similar nature is included in such profits, the same has to be reduced by 90 per cent. from the profits computed as aforesaid. The deductions to be made are from the amount of profits so computed and not from the amount computed under any other head of income of that assessee. No reference to net interest is men-tioned in clause (baa) of the Explanation to section 80HHC(4B). Section 80HHC stipulates a deduction in respect of export profits. Instead of enjoining the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ased at the earliest, they have chosen to pay the stamp duty without contesting the same and without consulting the assessee. The assessee, as seller, did not have any locus standi in the proceedings and hence the assessee should not be made to suffer by enhancing the assessment. That explanation offered by the assessee was rejected on the premise that section 50C of the Act makes it obligatory on the part of the Assessing Officer to treat the value adopted by the stamp valuation authority as the deemed sale consideration received/accrued as a result of transfer. 7. We are of the view that there cannot be any exception to the finding arrived at by the Assessing Officer, which has been confirmed by the appellate authorities as well as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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