TMI Blog2008 (1) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... as delivered by F. I. REBELLO J.-1. Notice was served on the respondent that the matter would be finally decided. None present for the respondent. 2 The Revenue has preferred this appeal on the following question: "The question is whether, on the facts and circumstances of the case, the Income-tax Appellate Tribunal erred in allowing the claim made by the assessee under section 80 HHC to the extent of Rs. 3,45,120 ?" 3 In the instant case, the respondent preferred an appeal against the order of the Assessing Officer before the Commissioner (Appeals). The Commissioner (Appeals) held that the export profits for the purpose of deduction under section 80 HHC(1) shall be the profit related to the export of goods manufactured by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is a manufacturer of machineries and equipments necessary for power plants. In addition to manufacturing, the assessee-company is also rendering technical services to domestic as well as overseas customers and matters regarding the improvement and the performance of the machineries and equipments sold by the assessee and also giving professional advice to the customers and others regarding the optimum performance of the connected machineries and the development charges and service charges are collected by the assessee against rendering of such services. The Tribunal held that the consultancy and advisory activities carried on by the assessee is part and parcel of the business and, therefore, the Assessing Officer was not justif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 HHC the total turnover referred to sales and purchase turnover and it did not include receipts in the nature of income which income was not attributable to sales. It further held that the processing charges, which was part of gross total income, was an independent income like rent, commission, brokerage, etc., and, therefore, 90 per cent.of the said sum had to be reduced from the gross total income to arrive at the business profits. The court then observed as under (page 241): "In other words, receipts constituting independent income having no nexus with exports were required to be reduced from business profits under clause (baa). A bare reading of clause (baa) (1) indicates that receipts by way of brokerage, commission, interest, rent, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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