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TMI Blog2007 (8) TMI 470X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 80HHC by excluding the cash compensatory support from the business profit - Explanation (baa) to section 80HHC of the Act, effective for the assessment year under appeal, states that 90 per cent. of the cash compensatory support would have to be deducted from the profits for working out the export profits - Held that: - Explanation (baa) to section 80HHC of the Act, effective for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said assessment year filed its return and the Assessing Officer, inter alia, dis-allowed the claim of the assessee pertaining to expenditure on farm, build-ing tax, voluntary retirement scheme. The Assessing Officer restricted the depreciation claim on machinery purchased from IDBI and also recom-puted the deduction under section 80HHC by excluding the cash compensatory support from the busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under : "Whether, on the facts and circumstances of the case, the Tribunal was right in observing that other receipts other than cash compensatory support have to be excluded from the business profit for the purpose of deduction under section 80HHC ?" 6. With reference to the substantial question of law framed as above, both the Commissioner of Income-tax (Appeals) as well as the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pportioned in the ratio of export turnover to the total turnover. This amount would then be added by 90 per cent. of the cash compensatory support. The sum total of these two figures would be the export profit for which deduction under section 80HHC of the Act is available. The Assessing Officer would recalculate the same on the above basis." 7. In view of the inconsistent reason given and als ..... X X X X Extracts X X X X X X X X Extracts X X X X
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