TMI Blog1995 (5) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... posed of ex parte on the basis of the merits of the case and as per the records. 2. The only issue in this appeal, allowed by the first appellate authority is whether the provisions of section 72 relating to setting off of losses of earlier years will have to be given effect to first. In the assessment order, the Assessing Officer had set off the loss brought forward from earlier years against c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceeds the amount referred to in clause (a) : Provided that the deduction under this sub-section shall not exceed the profits derived by the assessee from the export of such goods or merchandise " There is, therefore, no doubt about the fact that so far as this particular section is concerned, there is no restrictive clause on the amount of deduction to be allowed excepting what is mentioned i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in accordance with the provisions of this Act before making any deduction under this Chapter or under section 280-O." It would thus be evident that the expression "gross total income" as used in this Chapter is required to be computed after setting off brought forward losses from the earlier years. In accordance with the provisions of sub-section (2) of section 80A again, as mentioned above, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e first appellate order, as subsisting at present. However, if the amount of "gross total income" comes below 50% of the total export profits, then the amount of deduction allowable under section 80HHC shall have to be restricted to the amount of gross total income as above. The Assessing Officer is, therefore, being directed first to compute the amount of "gross total income" and thereafter to li ..... X X X X Extracts X X X X X X X X Extracts X X X X
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