TMI Blog2018 (9) TMI 718X X X X Extracts X X X X X X X X Extracts X X X X ..... needless to state that the assessee shall provide all the details before the Assessing Officer in support of their contention. - Tax Case Appeal No.1172 of 2008 - - - Dated:- 4-9-2018 - T.S.SIVAGNANAM And V. BHAVANI SUBBAROYAN, J. For the Appellant : Mr.Vijayaraghavan for M/s.Subbaraya Aiyer Padmanbhan For the Respondent : Mr.M.Swaminathan, SSC ORDER Judgment was delivered by T. S. Sivagnanam, J We have heard the learned counsel on either side. 2. This appeal by the assessee has been directed against the order dated 14.3.2008 passed by the Income Tax Appellate Tribunal, 'A' Bench, Chennai in ITA.No.1615/Mds/2007 for the assessment year 2003-04. 3. This appeal has been admitted on 11.8.2008 on the fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and the only issue canvassed before us is as to whether 90% deduction is to be made from gross or net income on any of the receipts mentioned in Clause (1) of Explanation (baa). This question has been answered by the Hon'ble Supreme Court in the case of ACG Associated Capsules (P) Ltd. Vs. CIT [reported in (2012) 247 CTR 0372]. The Hon'ble Supreme Court, after taking note of the decision in the case of K.Ravindranathan Nair, pointed out that in the instant case, the Court was not deciding the issue as to whether 90% deduction is to be made from gross or net income of any of the receipts mentioned in Clause (1) of Explanation (baa) and held that only 90% of the net income of any receipts of the nature mentioned in Clause (1), which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction and the question is not on the gross conversion charges. 7. In the decision reported in (2012) 343 ITR 89 (SC) [ACG Associated Capsules Pvt. Ltd. Vs. Commissioner of Income Tax], the Apex Court, after referring to the decision of the Apex Court in the case of CIT Vs. K.Ravindranathan Nair [(2007) 295 ITR 228 (SC)], held that the processing charges formed part of the gross total income as an independent income like rent, commission, brokerage, etc. Consequently, the Apex Court held that the 90% of the said sum has to be reduced from the gross total income to arrive at the business profits. 8. Since the processing charges was an important component of the business profits, it has to be included in the total turnover in the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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