TMI Blog2004 (8) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... (baa) of Explanation to section 80HHC? - Held, no - we hold that the assessee did not have the statutory 'profit of business' as defined in the Explanation and, therefore, in terms of the main provisions of sub-section (3) he is not entitled to the deduction of such profit (which is nil) there being no profits - interpretation given by the Tribunal is not correct. - - - - - Dated:- 2-8-2004 - Judge(s) : S. SANKARASUBBAN., A. K. BASHEER. JUDGMENT The judgment of the court was delivered by S. Sankarasubban J. - This reference arises from a reference made by the Income-tax Appellate Tribunal, Cochin Bench. Reference is at the instance of the Revenue. The questions of law that arise in this case are regarding the interpretation to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f begins by saying deduction in respect of profits retained for export business. Section 80HHC says as follows: "(1) Where an assessee, being an Indian company or a person (other than a company) resident in India, is engaged in the business of export out of India of any goods or merchandise to which this section applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction of the profits derived by the assessee from the export of such goods or merchandise." Thus, section 80HHC of the Act gives some advantage to persons, who are in the export field. Sub-section (3) of section 80HHC of the Act gives an indication as to how to compute the incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there being no profits. Learned chartered accountant concedes this point before us. However, he urges that the assessee would be entitled to the deduction of an amount as provided for in the proviso to sub-section (3)". The Tribunal says that in the facts and circumstances of the case, the word "profit" will include loss also and so, it held that the benefit of the proviso will be accrued to the assessee. In the above view of the matter, the Tribunal held that the assessee is entitled to the benefit of the proviso taking the profit as loss. It is this judgment that is agitated before us. In the nature of the facts in this case, our duty is only to find out what should be the meaning given to the word "profit" in the proviso. Of course, a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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