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TMI Blog2015 (2) TMI 718X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee was entitled to the deduction under section 80HHB in respect of each project instead of netting up of profits from all the overseas projects. In such circumstances, the Tribunal was in no error in directing the Assessing Officer to allow the deduction as claimed by the assessee without setting off all the losses suffered in other foreign projects. See CIT v. Canara Workshops P. Ltd. [1986 (7) TMI 5 - SUPREME Court] - Decided in favour of assessee. - INCOME TAX REFERENCE NO. 303 OF 1997 - - - Dated:- 3-9-2014 - S.C. DHARMADHIKARI AND A. K. MENON, JJ. For the Appellant: Mr. Suresh Kumar For the Respondent : Mr. Sanjiv Shah JUDGEMENT 1. The Tribunal has referred the following questions for opinion and answe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestions Nos. 1 to 3 which have been referred, are interrelated. They arise out of the same issue, namely, deduction under section 80HHB of the Income-tax Act, 1961. 3. It is the case of the assessee and which has been accepted by the Tribunal that it is a limited company engaged in construction activity having more than 50 construction sites in India and abroad. While completing the assessment for the assessment year 1984-85, the Assessing Officer did not consider any deduction under section 80HHB of the Act as the assessee's application for condonation of delay in repatriation of funds was pending before the Commissioner of Income-tax, Bombay City-I. The Assessing Officer observed that the deduction will be determined and given und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by him, or (b) The execution of any work undertaken by him and forming part of a foreign project undertaken by any other person in pursuance of a contract entered into by such other person, with the Government of a foreign State or any statutory or other public authority or agency in a foreign State, or a foreign enterprise, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to fifty per cent. thereof : Provided that the consideration for the execution of such project or, as the case may be, of such work is payable in convertible foreign exchange. 5. The Tribunal held that the wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be aggregated as was done by the Assessing Officer and upheld by the Commissioner. 7. We have heard Mr. Suresh Kumar at some length, appearing for the Revenue and Mr. Shah appearing for the assessee. 8. With their assistance, we have perused the relevant provisions of Chapter VI-A. We have also perused this section which is the subject matter of this reference carefully. 9. We find no basis for any wider question or controversy being decided or dealt with. Whether the judgment of the hon'ble Supreme Court in the case of CIT v. Canara Workshops P. Ltd. reported in [1986] 161 ITR 320 (SC) was the applicable one or whether the judgment delivered by a Division Bench of this court in the case of Synco Industries Ltd. v. Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of each unit and that is not prohibited by section 80HHB(1). That has been considered by the Tribunal and in accepting the assessee's stand that it referred to the judgment of the hon'ble Supreme Court. The judgment referred to in the case of CIT v. Canara Workshops P. Ltd. (supra) has been referred because in that case the Income-tax Officer held that the assessee before the hon'ble Supreme Court would be entitled to deduction under section 80E on the profits from the manufacture of automobile parts only after setting off the loss in alloy steel manufacture. That was because in the relevant assessment year, the assessee commenced another activity, namely, the manufacture of alloy steels which was an industry. The assessee was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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