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TMI Blog2023 (6) TMI 726X X X X Extracts X X X X X X X X Extracts X X X X ..... aining to the Asst.Year1999- 2000. Both the appeals are disposed of by this common order. 2. The ld.DR filed an application seeking adjournment on the ground that he would be unable to attend the hearing since he had been called for a briefing meeting by Election Commission of India. The said adjournment application was placed before us. At this juncture, ld.Senior Counsel, Shri S.N. Soparkar, appearing for the assessee stated before us that as far the assesses appeal is concerned the same is liable to be dismissed since the issue raised in the appeal stands decided against the assessee covered by the decision of the jurisdictional High Court in the matter. He pointed out that the issue arising in the assessee's appeal related to simultane ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to A.Y 1999-2000, i.e more than 20 years old, and also noting the concession of the Ld.Sr counsel for the assessee in the assesses appeal which relates to the major issue in the appeals, in the interest of all concerned it was decided not to adjourn the matter any further and to proceed with the adjudication of the appeals. The adjournment application of the Ld.Sr.DR was accordingly rejected and the appeals were proceeded to be heard. At the outset it was pointed out that this was the second round before us, with the ITAT having restored certain issues for reconsideration to the AO in the first round as under; 1. reducing deduction allowed u/s 80IA of the Act from the computation of deduction u/s 80HHC of the Act. 2. various items of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly to the appellant should be adopted while computing deducting U/S.80HHC of the Act by adopting Business Profit without reducing deduction entitled to the appellant company u/s. 80IA/80IBof the Act." 6. As is evident from the above, the solitary issue raised in the present appeal relates to the claim of deduction under section 80HHC of the Act; whether to be computed on the residual profits remaining after allowing deduction under section 80IA of the Act in terms of section 80IA(9) of the Act. Since the ld.counsel for the assessee has fairly conceded that the reference to the Larger Bench of the Supreme Court on this issue in the case of Micro Lab (supra) has been dismissed on 17.9.2018 in CA No.007427/2012 and Hon'ble jurisdictional High ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omponents of such income was Rs. 12,90,973/- and Rs. 48,334/- respectively. The ld.CIT(A) allowed the claim of deduction under section 80HHC finding that both related to income arising from business activity of the appellant company ,which even the AO has treated as business income and not income from other sources. Applying the decision of Hon'ble Bombay High Court in the case of CIT Vs. Bangalore Clothing CO., (2003) 180 CTR (Bom) 127, the assessee claimed that deduction in relation to both sale of scrap and stores and contract compensation was allowed by the ld.CIT(A). His finding in this regard at page no.3 & 4 of the order is as under: (c) Misc. income excluded from business profits. Misc. income is sale of scrap, stores etc. which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e from the business activity of the assessee-company. With regard to the contract compensation also, he noted, the same related to compensation recovered on account of claim made for breakages and loss in transit as well as compensation received under contract in the sanitary ware division of the assessee-company. This fact has remained uncontroverted before us. 11. Surprisingly, on going through the assessment order, we find that even the AO had treated the income from scrap sale to be included for the purpose of computing deduction under section 80HHC of the Act. His finding with regard to the income received from sale of scrap/stores at para 7.3 of the order is as under: "7.3 Out of Misc. income of Rs. 26,24,122/- income received from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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