TMI Blog2004 (7) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... be excluded from the profits of business as computed under the head "Profits and gains of business or profession" - - - - - Dated:- 22-7-2004 - Judge(s) : N. K. SUD., ADARSH KUMAR GOEL JUDGMENT-N.K. SUD, J.: Assessee has filed this appeal under s. 260A of the IT Act, 1961 (for short 'the Act') against the order of the ITAT, Delhi Bench 'B' Delhi (for short 'the Tribunal') dt. 30th May, 2002, whereby appeal of the Revenue against the order of the CIT(A) dt. 12th May, 1994 has been allowed. 2. Assessee is a partnership concern engaged in the manufacture of footwear/shoe uppers which are mostly exported abroad and these exports entitled it to deduction under s. 80HHC. While completing the assessment for asst. yr. 1992-93, the AO excl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Ravi Ratan Exports (P) Ltd. (2000) 246 ITR 443 (Bom) and (3) CIT vs. K.K. Doshi Co. (2000) 163 CTR (Bom) 472 : (2000) 245 ITR 849 (Bom). There is no dispute about the nature of receipt of hire charges of the plant and machinery let out to the sister-concern of the assessee. The main controversy before us is whether the receipt of hire charges is eligible for deduction under s. 80HHC or not. Prior to 1st April, 1992 every receipt which formed part of the business and gains of the assessee was eligible for deduction under s. 80HHC of the Act, but after the insertion of Expln. (baa) the profit of the business has been defined under this Explanation according to which it should be the profits and gains of business or profession as reduced b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest, rent, charges or any other receipt of a similar nature included in such profits; and (2) the profits of any branch, office, warehouse or any other establishment of the assessee situate outside India." This Explanation had been inserted by Finance (No. 2) Act, 1991 w.e.f. 1st April, 1992 and, therefore, was made applicable for the first time for asst. yr 1992-93 which is the year under consideration in the present appeal. 7. A plain reading of the aforementioned Explanation clearly shows that the Tribunal was right in holding that even though the rent and hire charges were assessable as business income, 90 per cent of the same had yet to be excluded for computing profits of the business for the purpose of s. 80HHC. 8. Mr. S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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