TMI Blog2015 (11) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... lusion that Explanation (baa) to section 80 HHC would apply to processing charges also. Therefore, that portion of the order of the Tribunal alone is set aside. However, the order of remand is confirmed and the assessing authority is at liberty to examine the nature of the income that comes under the heading processing charges. The other questions of law are answered against the assessee. - T. C. (A) No. 915 of 2007 - - - Dated:- 11-8-2015 - V. Ramasubramanian And T. Mathivanan, JJ. For the Petitioner : Mr. M P Senthilkumar For the Respondent : Mr. M Swaminathan JUDGMENT (Judgment of the Court was delivered by V. Ramasubramanian, J. ) This Tax Case Appeal arises out of an order of remand passed by the Income Tax App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer, on 26.4.1999, could not reach the Commissioner of Income Tax (Appeals) before he dismissed the appeal on 10.5.1999, the order of the assessing officer could not be given effect to. Therefore, the assessing officer held the order of rectification to have become infructuous. As against the said conclusion, the appellant filed a fresh appeal. But, the Commissioner of Income Tax (Appeals) dismissed the said appeal by order dated 11.10.1999. 8. In the meantime, the appellant filed a further appeal before the Tribunal as against the first order dated 10.5.1999 passed by the Commissioner of Income tax dismissing his appeal. The Tribunal, by order dated 28.9.2006, remanded the matter to the assessing officer insofar as the claim for deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licable and 90% of the income arising from Processing Charges, charges for processing hall and cold storage plant and storage charges should be excluded while computing deduction under Section 80 HHC? 9. Unfortunately, for the assessee, the question as to whether processing and cold storage service charges and storage charges would come within the Explanation (baa) to section 80 HHC or not, is already covered by a judgment of this court dated 27.7.2011 in T.C.(A) No.260 of 2005 as against the very appellant herein in respect of the assessment year 1995-1996. This judgment has attained finality. Therefore, out of the three heads of claims, viz., (1) processing charges to the extent of ₹ 18,97,879/- (2) processing and cold storage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t contends in relation to the nature of the income that is encapsulated as processing charges is correct or not. Therefore, we are of the view that in the light of what is observed in para 10 of the judgment of this court in T.C.A.No.260 of 2005, the assessing officer should be allowed a free hand to determine the same. para 10 of the judgment of this court dated 27.7.2011 in T.C.(A) Bi,260 of 2005 reads as follows:- In considering whether the receipt would form part of the turnover, the Apex Court held that the nature of every receipt has to be seen to find out whether it has the attribute of export turnover. 12. Therefore, we are of the considered view that insofar as two out of the three items of claims for deduction under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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