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TMI Blog2012 (1) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... inst the Revenue. - ITA 683/2011 - - - Dated:- 4-1-2012 - MR. JUSTICE SANJIV KHANNA, MR. JUSTICE R.V. EASWAR, JJ. For Appellant : Mr. Sanjeev Rajpal, Adv. For Respondent : Mr. Ajay vohra, Ms. Kavita Jha and Mr. Somnath Shukla, Advs. SANJIV KHANNA,J: (ORAL) The present appeal filed by the Revenue under Section 260A of the Income Tax Act, 1961 (Act) impugns order dated 21st June, 2010 passed by the Income Tax Appellate Tribunal (Tribunal) which relates to the assessment year 2001-02. 2. For the said assessment year, scrutiny notice under Section 143(2) was issued and during the course of the regular assessment proceedings a questionnaire dated 6th August, 2002 was written to the assessee. Question Nos.4 and 5 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... employing 85 persons as per the copy of ESI return for the half year ended 31-3-02. Copy of the returns enclosed. 4. With regard to the deduction under Section 80HHC it was stated as under:- 2. Regarding the deduction u/s 80HHC it is submitted that during the AY 00-01 80% of the export profit was exempted from profit. As per explanation (bra) of this section profit of the business means the profit of the business as computed under the head Profits and gains of business or profession as reduced by (a) Ninety percent of any sum referred to in clause (iii), (iiib) and (iiic) of section 28 or of any receipts by way of a brokerage, commission, interest, rent, charges or any other receipt of similar nature included in such profit, and (b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aimed u/s 80HHC. However, as per law the assessee has to claim deduction u/s 80IA on profits without any reduction by taking away deduction u/s 80HHC on the said profits. Further, the assessee has while working out deduction u/s 80HHC has not reduced the amount of deduction u/s 80IA from the profits of business. This is against the provisions of section 80IA(9). Secondly the assessee has not reduced interest income earned from profits while calculating deduction u/s 80HHC. Thirdly, assessee has wrongly included FDR interest as part of his business income. Due to all the reasons cited above, the assessee has wrongly claimed a higher deduction u/s 80HHC then what he is allowed as per law. The deduction u/s 80HHC actually works out to Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esent case is not of re-examination or reopening on change of opinion as the Assessing Officer during the course of the original proceedings had not applied his mind to the legal provisions/law. He submits that in the assessment order dated 31st March, 2003, the Assessing Officer has not discussed any aspect and had recorded that the return was accepted. 9. It is not possible to accept the contention of the learned counsel for the Revenue. We have quoted above the questionnaire and the reply furnished by the assessee. The question of deductions under Section 80IA and 80HHC were specifically examined at the time of original assessment proceedings. The respondent-assessee had justified the claim and furnished documentary evidence or proof. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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