TMI Blog2017 (5) TMI 1587X X X X Extracts X X X X X X X X Extracts X X X X ..... e business. Matter remanded back to A.O. to work out the deductions – Decided in favor of assessee - D.B. Income Tax Appeal No. 227 / 2009, D.B. Income Tax Appeal No. 215 / 2011 - - - Dated:- 26-5-2017 - HON'BLE MR. JUSTICE K.S. JHAVERI AND HON'BLE DR. JUSTICE VIRENDRA KUMAR MATHUR For Appellant(s) : Mr. Sanjay Jhanwar with Ms. Archana For Respondent(s) : Mr. R.B. Mathur with Mr. K.D. Mathur JUDGMENT In both these appeals, identical question of law and facts are involved and they relate to same assessee, therefore, they are heard together and decided by this common judgment. 1. By way of these appeals, the appellant has assailed the judgment and order of the Tribunal whereby the Tribunal has dismissed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omputed under the head Profits and Gains of Business or Profession as reduced by the receipts of the nature mentioned in Clauses (1) and (2) of the Explanation (baa). Thus, profits of the business of an Assessee will have to be first computed under the head Profits and Gains of Business or Profession in accordance with provisions of Section 28 to 44D of the Act. In the computation of such profits of business, all receipts of income which are chargeable as profits and gains of business under Section 28 of the Act will have to be included. Similarly, in computation of such profits of business, different expenses which are allowable under Sections 30 to 44D have to be allowed as expenses. After including such receipts of income and after d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Assessee is to be deducted from the profits of the Assessee for determining profits of the business of the Assessee under Explanation (baa) to Section 80HHC. 11. For this interpretation of Explanation (baa) to Section 80HHC of the Act, we rely on the judgment of the Constitution Bench of this Court in Distributors (Baroda) P. Ltd. v. Union of India and Ors. (supra). Section 80M of the Act provided for deduction in respect of certain intercorporate dividends and it provided in Sub-section (1) of Section 80M that where the gross total income of an Assessee being a company includes any income by way of dividends received by it from a domestic company, there shall, in accordance with and subject to the provisions of this Section, be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 80HHC. 15. The Bombay High Court has also relied on the Memorandum explaining the clauses of the Finance Bill, 1991 contained in the circular dated 19.12.1991 of the Central Board of Direct Taxes to come to the conclusion that the Parliament intended to exclude items which were unrelated to the export turnover from the computation of deduction and while excluding such items which are unrelated to export for the purpose of Section 80HHC, Parliament has taken due note of the fact that the exporter Assessee would have incurred such expenditure in earning the profits and to avoid a distorted figure of export profits, ninety per cent of the receipts like brokerage, commission, interest, rent, charges are sought to be excluded from the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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