2012 (9) TMI 621 - SCH - Income Tax

Computation of deduction admissible to supporting manufacturer u/s 80HHC(3A) - Whether 90% of export benefits have to be reduced in terms of Explanation (baa) of Section 80HHC - Held that - As decided in CIT v. Baby Marine Exports 2007 (3) TMI 206 - SUPREME COURT on a plain construction of section 80HHC(1A), the respondent is clearly entitled to claim deduction of the premium amount received from the export house in computing the total income. The export house premium can be included in the business profit because it is an integral part of business operation of the respondent which consists of sale of goods by the respondent to the export house - appeal of revenue is dismissed.

Summary

The Supreme Court dismissed civil appeals filed by the Department regarding the reduction of export benefits under Section 80HHC of the Income Tax Act. The decision was based on a previous case ruling in favor of the assessee. Delay was condoned, and no costs were ordered.