TMI Blog2010 (3) TMI 1149X X X X Extracts X X X X X X X X Extracts X X X X ..... s order dated 30-11-2005 for the assessment year 2003-04. 2. The first issue in this appeal of the assessee is against the order of CIT(A) in confirming the disallowance of deduction u/s.80HHC of the Act on interest-income. 3. At the outset, Ld. Counsel for the assessee stated that this issue is covered by the decision of Hon ble Delhi High Court in the case of CIT v. Shri Ram Hunda Power Equip (2007) 289 ITR 475 (Del) and he fairly stated only netting of the amount of interest is to be allowed. On the other hand, Ld. CIT-DR Shri K.R. Meghwal stated that only netting is to be allowed in case the income is from business and in case income is very other sources then no netting is to be allowed. 4. After hearing both sides, we find th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act and also inserting the 3rd and 4th provisos to Section 80HHC(3) of the Act. In view of this amendment, the Ld. Counsel for the assessee stated that these incomes are in the nature of business income and deduction u/s.80HHC is to be allowed and also to consider the decision of Special Bench in the case of Topman Exports v. ITO (2009) 318 ITR (AT) 87 (Mum) (SB). We find that this issue has been decided by the Mumbai Special Bench in the case of Topman Exports v. ITO (2009) 318 ITR (AT) 87 (Mum) (SB), wherein it is held that only the net profit of DEPB should be excluded for the purpose of computation of deduction u/s.80HHC of the Act. He referred to the case law in the case of Topman Exports (supra) and stated that the issue can b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... self manufactured goods or trading goods separately, it has already so provided in sub-sections (3)(a) and (3)(b). In arriving at the figure of positive profit, both the profits and the losses will have to be considered. If the net figure is a positive profit then the assessee will be entitled to a deduction. If the net figure is a loss then the assessee will not be entitled to a deduction. Sub-section (3)(c) deals with cases where the export is of both self manufactured goods as well as trading goods. The opening part of sub-section (3)(c) states profits derived from such export shall . Then follow (i) and (ii). Between (i) and (ii) the word and appears. A plain reading of sub-section (3)(c) shows that profits from such exports has to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under this Chapter) shall alone be deemed to be the amount of income of that nature which is derived or received by the assessee and which is included in his gross total income. Section 80B(5) is also relevant. Section 80B(5) provides that gross total income means the total income computed in accordance with the provisions of the Income-tax Act. Section 80AB is also in Chapter VI-A. It starts with the words where any deduction is required to be made or allowed under any section of this Chapter . This would include Section 80HHC. Section 80AB further provides that notwithstanding anything contained in that section . Thus section 80AB has been given an overriding effect over all other sections in Chapter VI-A. Section 80HC do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing export business as a whole including domestic turnover and not separate unite-wise. The AO relied on the order of CIT(A) in earlier years, i.e. Assessment Years 1999-00, 2000-01, 2001-02 and 2002-03. We find that in assessee s own case in ITA No.1347/Ahd/2004, 535-536/Ahd/2005 249/Ahd/2005 dated 12-06-2009, relying on the case of CIT v. Parry Agro Industries Ltd. (2002) 257 ITR 41 (Mad) and CIT v. Rathore Brothers (2002) 254 ITR 656 (Mad) has allowed the claim of the assessee vide para-5 6 as under:- 5. We have heard the rival submissions and perused the orders of the lower authorities and the materials available on record. Both the parties before us agreed that this issue is covered in favour of the assessee by the order of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (pg 13-15-Para 5). 9. We have heard rival submissions and perused record. Respectfully following the Tribunal order in assessee s own case (supra), we hold that deduction under section 80HHC is to be allowed on unite-wise basis, this ground of Revenue is dismissed. 6. Facts being identical, respectfully following the precedent, we allow this ground of appeal of the assessee. The facts being exactly identical in this year also and respectfully following the Tribunal s decision in assessee s own case (supra), we allow the claim of the assessee. This issue of the assessee s appeal is allowed. 11. The next issue in this appeal of the assessee is against the exclusion of the amount received from export turnover holding the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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