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TMI Blog2008 (2) TMI 419X X X X Extracts X X X X X X X X Extracts X X X X ..... n 260A of the Income-tax Act, 1961 (hereinafter shall be referred to in short as "the Act"), decided by the Tribunal on May 28, 2003. 3. Even though in the memo of appeal counsel for the appellants has projected two substantial questions of law, but after having heard him and after perusal of the records, we are of the considered opinion that only the following substantial question of law would arise for our consideration: "1. Whether the appellate authorities were correct in holding that no additional tax under section 143(1A) of the Act can be levied on the assessee in rectification proceedings, which had not been made during the assessment year and that the prima facie adjustment and additional tax levied had been made in the original ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bove, despite notice, the assessee remained absent. Thus we have heard the learned counsel for the appellant. Perused the records. 6. It has been brought to our notice that sub-section (1A) of section 143 of the Act was amended by the Finance Act, 1993, with effect from April 1, 1989, the date on which sub-section (1A) had been introduced in section 143 of the Act. The substituted sub-section (1A) of section 143 of the Act reads thus: "143.(1A)(a) Where as a result of the adjustments made under the first proviso to clause (a) of sub-section (1),— (i) the income declared by any person in the return is increased; and (ii) the loss declared by such person in the return is reduced or is converted into income. the Assessing Officer shall,— ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e imposed." 9. Apart from the above, with regard to allowability of deduction claimed by the assessee under section 80HHC of the Act, such question stood answered by two judgments of the Supreme Court in the case of IPCA Laboratory Ltd. v. Deputy CIT [2004] 266 ITR 521 and in the case of A. M. Moosa v. CIT [2007] 294 ITR 1 (SC). The ratio of the aforesaid two cases is that the word "profit" used in section 80HHC(3)(c)(i) and (iii) of the Act means a positive profit. A plain reading of sub-section (3)(c) shows that "profits from such exports" has to be profits from exports of self-manufactured goods plus profits of exports from trading goods. The profit is to be calculated in the manner laid down in sub-section (3)(c)(i) and (ii). The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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