TMI Blog2022 (6) TMI 902X X X X Extracts X X X X X X X X Extracts X X X X ..... n nature and therefore, the commission would not entitle the Appellant Assessee for exemption does not survive This finding of the Tribunal was the foundation of its decision. In the case of P.R. Prabhakar, the Supreme Court also observed that since the amendment to Section 80HHC of the year 1991 was prospective, the commission for export constituted export profits and the assessee would be entitled to deduction under Section 80HHC for the Assessment Year 1991 that is prior to the amendment. The Supreme Court has settled these two questions in its decision. Both grounds on which the Tribunal passes the impugned order therefore do not survive. We have perused the orders of the Assessing Officer, Commissioner of Income Tax (Appeals) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding in wattle extracts. The Appellant filed its return of income for the Assessment Year 1991-92 on 31 January 1992, disclosing a total income of Rs.22,18,060/-. According to the Assessee, the total turnover was Rs.8,16,49,397/-, out of which export turnover was Rs.5,78,02,396/-. The Assessee showed a profit of Rs.48,71,622/-. The Assessee claimed deduction under Section 80HHC of the Income Tax Act to the extent of Rs.4,1,13,844/-. The Assessing Officer noticed from the profit and loss account of the Assessee that the income includes Rs.60,71,414/- as commission income, and the profit before taxation was Rs.61,51,622/-. Having opined that same was due to commission income and there was no export profit and that the claim of deduction under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause (b) and (baa) in the explanation to Section 80HHC inserted by Finance Act, 1991, which was brought into force on 1 April 1992, was retrospective in nature and was applicable to the concerned Assessment Year and, therefore, the commission income will stand excluded from the business profit. The Tribunal held that once it is excluded, there can be no profit from the export business to enable the Assessee to claim the deduction under Section 80HHC. The Appeal of the Revenue was accordingly allowed by order dated 7 June 2002. 5. Being aggrieved, the present appeal is filed by the Appellant Assessee. The Appeal was admitted by order dated 7 October 2004 on the following question:- Whether on the facts of the case and in law the Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fits and the assessee would be entitled to deduction under Section 80HHC for the Assessment Year 1991 that is prior to the amendment. The Supreme Court has settled these two questions in its decision. Both grounds on which the Tribunal passes the impugned order therefore do not survive. 8. The learned Counsel for the Respondent Revenue sought to contend that though it is true that the decision in the case of P.R. Prabhakar would cover these two issues as above, it is not that every kind of commission that would lead to claim under Section 80HHC. The learned Counsel submitted that in the decision of P.R. Prabhakar, the commission therein was for procuring export contract for other exporters on commission and it is this type of commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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