9911796707
TMI Blog2005 (12) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer while making assessment under section 143(3) of the Act, the Commissioner of Income-tax, in exercise of his power conferred upon him under section 263 thereof, issued a notice to the assessee on the premise that the said order of assessment was erroneous and prejudicial to the Revenue. Upon hearing the assessee, by an order dated March 3, 1999, a direction was issued to the Assessing Officer to withdraw the said relief. The respondent preferred an appeal thereagainst before the Income-tax Appellate Tribunal, Bangalore. By an order dated August 19, 2002, the said appeal was allowed following a decision of the Cochin Bench of the Tribunal in the case of A.M. Mossa v. CIT in I.T.A. No. 498/Coch. of 1995. The appeal was preferred by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acturer, then the amount of deduction in the case of the assessee shall be reduced by such amount which bears to the total profits derived by the assessee from the export of trading goods, the same proportion as the amount of export turnover specified in the said certificate bears to the total export turnover of the assessee in respect of such trading goods ... (3) For the purposes of sub-section (1),- (a) where the export out of India is of goods or merchandise manufactured or processed by the assessee, the profits derived from such export shall be the amount which bears to the profits of the business, the same proportion as the export turnover in respect of such goods bears to the total turnover of the business carried on by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnover in respect of trading goods; (b) 'adjusted profits of the business' means the profits of the business as reduced by the profits derived from the business of export out of India of trading goods as computed in the manner provided in clause (b) of sub-section (3); (c) 'adjusted total turnover' means the total turnover of the business as reduced by the export turnover in respect of trading goods; (d) 'direct costs' means costs directly attributable to the trading goods exported out of India including the purchase price of such goods; (e) 'indirect costs' means costs, not being direct costs, allocated in the ratio of the export turnover in respect of trading goods to the total turnover; (f) 'tradi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to deduction under section 80HHC in respect of the sum of Rs. 3.78 crores ignoring the loss of Rs. 6.86 crores. This court repelled the contention that even when the profits are to be reduced by the losses in cases where an export house has disclaimed its turnover in favour of a supporting manufacturer, the turnover of the exporter gets reduced to the extent disclaimed opining that in computing the total income the entire turnover is taken into account even though there is a disclaimer. The court further negatived the submission of the assessee that even loss is a negative profit. IPCA Laboratory Ltd. [2004] 266 ITR 521 is an authority for the proposition that adjusted profit of business would be a profit as reduced by the profit derive ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
