2017 (4) TMI 304 - SCH - Income Tax

Commission considered for determining the deduction under section 80HHC - Held that - High Court following its earlier decision in the case of Commissioner of Income-Tax Vs. P.R. Prabhakar 2004 (5) TMI 26 - MADRAS High Court dismissed the appeal holding Tribunal is not right in law in holding that commission and brokerage for procuring export contracts for other exporters is exempt under section 80HHC on the ground that the same is export profits. As brought to notice that the decision in P.R. Prabhakar (Supra), has been reversed by this Court in the case of P.R. Prabhakar Vs. Commissioner of Income-Tax 2006 (7) TMI 121 - SUPREME Court has been reversed by this Court in the case of P.R. Prabhakar Vs. Commissioner of Income-Tax,(2006)6 SCC 86, wherein this Court has said that the commission is also to be considered for determining the deduction under section 80HHC of Income Tax Act, 1961. Since the decision relied upon by the High Court dismissing the appeal has been reversed by this Court, the impugned order cannot be sustained and the same is set-aside. The matter is remanded back to the High Court for deciding the same on merits, in accordance with law.

Summary

The Supreme Court set aside the judgment of the High Court and remanded the case back for reconsideration as the earlier decision was reversed by the Supreme Court. The matter will be decided on its merits in accordance with the law.