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TMI Blog2003 (7) TMI 634X X X X Extracts X X X X X X X X Extracts X X X X ..... 99 and is directed against the order of CIT(A), Mumbai dated 13-12-2002. 4. I have heard the arguments of both the sides and also perused the records. 5. First I take up ITA No. 1364/Mum./03. 6. Ground No. 1 disputes the Ld. CIT(Appeals)'s impugned order in not considering that loss as per computation under section 80HHC(3) should be ignored and 90 per cent of the incentives should be allowed as deduction under proviso to section 80HHC(3). The Ld. AR of assessee has contended that the loss should not be considered and be ignored for computing profits under section 80HHC(3), incentive should be allowed under proviso to section 8HHC i.e., the profits should be further increased by incentive. He has contended that the assessee has claimed 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old that in the instant case, the loss is not to be considered and is to be ignored for computation of deduction under section 80HHC. 8. As regards exports incentives, it has been held by ITAT Mumbai in the abovementioned decision in the case of Vishal Exports Overseas Ltd. (supra) vide para 14 of the order that under the proviso, the profits computed shall be further increased by that amount which bears to 90 per cent of exports incentives in the same proportion as the export turnover bears to the total turnover of the business. The amount of export incentive by which computed profit has to be increased has been expressed in the formula as under : 90 per cent of export incentives x Export turnover Total turnover of the business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1989, interest on refund is allowable not only upto completion of assessment but also upto the date on which refund is granted and there is no question of interest on interest in respect of the delay in issuing the refund for the assessment year under appeal. Accordingly, the decision of the Apex Court in the case of Narendra Doshi (supra) is not applicable." It is no doubt true that the above mentioned judgment of Hon'ble Supreme Court was rendered with reference to section 214 whereunder the interest on excess amount of advance tax paid was allowable to assessee upto the date of regular assessment for immediately following assessment year, and that under section 244A, the said interest is payable upto the date on which refund is granted, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As such, the facts being identical, I follow my decision referred above on similar issue being ground No. 1 in IT Appeal No. 1364/Mum./03 wherein the issue has been decided in favour of assessee on both the counts i.e., in respect of loss and export incentives; and I direct the Assessing Officer accordingly, i.e., for the computation of deduction under section 80HHC, the Assessing Officer should ignore the loss and should further increase the computed profit by an amount bearing such proportion to 90 per cent of the export incentive as export turnover bears to the total turnover. 14. Ground No. 2 disputes the Ld. CIT(Appeals)'s action in not considering that while computing amount of indirect expenditure of 10 per cent of incentives amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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