TMI Blog2008 (2) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... nover & domestic turnover, for calculation of deduction u/s 80HHC - Tribunal is right in law in holding that the assessee is entitled for deduction under Section 80HHC fully on export profits - 33 of 2008 - - - Dated:- 4-2-2008 - K. RAVIRAJA PANDIAN and Mrs. CHITRA VENKATARAMAN JUDGMENT The Judgment of the Court was delivered by [K. RAVIRAJA PANDIAN, J]-1. This appeal has been fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic turn over and accordingly re-computed the deduction under Section 80HHC of the Act. Aggrieved by that order, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals) and the Commissioner of Income-tax (Appeals) allowed the claim of the assessee relying upon the provisions of Section 80HHC (3)(c) of the Act. The Revenue carried the matter on further appeal before the Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e export transaction the clubbing of income was permissible was considered by this Court in COMMISSIONER OF INCOME TAX VS. RATHORE BROTHERS reported in [2002] 254 ITR 656. In that case, it was held that where the assessee has maintained separate accounts and it had maintained its trading receipts and profit and loss accounts separately for export sales and domestic sales and there was sufficie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accounts independent of his other business and that there was no intermingling of expenditure or interlacing of funds of any kind whatsoever the assessee was entitled to the relief. That decision was followed in another case in COMMISSIONER OF INCOME TAX VS. MACMILLAM INDIA LTD., reported in [2007] 295 ITR 67, wherein also, the Court held as follows:- "Where the assessee had maintained sepa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aining separate set of books of accounts. Hence, the assessee is entitled for deduction under Section 80HHC of the Act fully on export profit. In view of the fact that the assessee maintained the separate books of accounts for export business and domestic business and in the light of the earlier decisions cited, we are of the considered view that the Tribunal has decided the issue correctly and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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