TMI Blog2015 (9) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... ns commenced. Hence, the matter is remanded to the Assessing Officer to decide the question on the basis of the aforesaid decision of the Karnataka High Court in Commissioner of Income Tax V/s. DSL Software Ltd. (2011 (10) TMI 423 - KARNATAKA HIGH COURT). Interpretation of the provisions of Section 80HHC - ITAT deleting the exclusion made by the AO in respect of amount received towards uptopping vessel income, machinery hire income, barge management expenses and in respect of amount received towards miscellaneous income, sale of scrap, service charges, grant-in-aid for medical expenses, recovery of fuel, group insurance, deptch money - Held that:- The test has necessarily to be whether or not 90% sought to be excluded is independent inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peals were admitted on the following substantial questions of law: (A) Whether the assessee is entitled to claim benefit of 10 years exemption by amendment to sub-section (3) of section 10B by Finance Act, 2001, with effect from 1/4/1994 or benefit of 8 years exemption under amendment by the Finance Act, 1988, with effect from 1/4/1989, particularly, when assessee commenced manufacturing/production from the year 1993 ? (B) Whether on the facts and in the circumstances of the case, the ITAT was justified in deleting the exclusion made by the AO in respect of amount received towards uptopping vessel income, machinery hire income, barge management expenses. Being not having any nexus with the export activity of the assessee under clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n conditions. The proposed amendment seeks to extend the period of tax holiday from five years to ten years in order to give added thrust to exports. Clause-4 seeks to similarly extend the five year tax holiday period to ten years to the export oriented units under, section 10B of the Income Tax Act. 5. Relying on the aforesaid object set out in the Statement of objects and reasons, Karnataka High Court further made following observations: From the aforesaid object behind the amendment, it is clear that the period of 5 years is extended to 10 years in order to give added thrust to exports. It is because the Parliament felt that the tax holiday of 5 years is not having the desired result and therefore, they extended the benefit of tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... came into force, he cannot be denied the benefit. If that is done, it would run counter to the intention with which the amended provision was brought on the statute book. It would negate the amended provision. 6. The learned Counsel for the appellant-Revenue is not in a position to dispute the above proposition of law, but submits that the question whether the respondent-Assessee is entitled to receive the benefit of the amended provision would depend upon the date of commencement of the manufacturing operation of the respondent-Assessee and, since the impugned order of the Tribunal does not throw any light on the said factual issue, the matter may be remanded to the Assessing Officer to decide the question in light of the aforesaid dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceipts referred to it in the said clause (baa)? (I) Question A so far as hire of barges is concerned is answered in the affirmative i.e in favour of the Revenue and against the Appellant/Assessee. So far as Proceeds of services and repairs of vessels are concerned, impugned order records a finding of fact that they have nexus to exports, therefore the same are answered in the negative i.e in favour of the Appellant/Assessee and against the Respondent /Revenue; B) Whether on the facts and in the circumstances of the case, receipts by way of sale proceeds from (i) sale of pig iron, (ii) sale of vessels, (iii) sale of engineering products, (iv) sale of material, and (v) sale of coke breeze could be cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the business means the profits of the business as computed under the head Profits and gains of business or profession as reduced by- (1) ninety per cent of any sum referred to in clauses (iiia), (iiib) [(iiic),(iiid) and (iiie)] of section 28 or of any receipts by way of brokerage, commission, interest, rent, charges or any other receipt of a similar nature included in such profits; and (2) the profits of any branch, office, warehouse or any other establishment of the assessee situate outside India. (emphasis supplied) 10. In Sesa Goa Ltd. (supra) this Court considered the expression any other receipt of a similar nature (emphasis supplied). This Court considered the decision of the Supreme Court in Commissioner of Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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