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TMI Blog2016 (4) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacturing and trading exports, filed its return of income on 31/10/2002, declaring total income at Rs. 59, 800/-. The AO completed the assessment, u/s. 143(3) of the Act, on 24. 03. 2005, determining the income of the assessee at Rs. 43, 14, 040/-. 2. The effective ground of appeal is about deduction/ claim under section 80 HHC of the Act. During the assessment proceedings, the AO found that assessee had incurred a loss of Rs. 9. 80 crores from trading export and had earned profit of Rs. 4. 35 crores from manufacturing export, that it had not netted of the loss of trading export with profit from manufacturing export, that it computed the deduction under section 80 HHC on the profit of Rs. 4. 35 crores, being profit from manufacturing ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that it had total turnover of Rs. 7. 84crores from exports, that it had claimed a total deduction of Rs. 6. 15 crores u/s. 80HHC that while filing the return it had claimed that loss from trading should be ignored based on the judgments prevailing at the time of return, during the assessment proceedings it was submitted that it was agreeable to the proposal that loss should not be so ignored following the judgment of IPCA Laboratories (supra), that the AO had taken a view that after aggregating the profit/loss from manufacturing and trading goods, the assessee was not entitled to any deduction u/s. 80HHC in respect of export incentives as it had suffered a loss, that the assessee had earned an income from sale of DEPB entitlements, amountin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of profits of units was not provided under the said section, that the assessee had made no submission in that regard, that the denial of deduction in the case under consideration was based on the decision delivered in the case of IPCA Laboratories (supra), that the arguments based on fragmented and segregated amts of components of various receipts which were part of the income/loss from export business had to be rejected, that the income from the export business of the assessee was in negative, that the question of deduction u/s. 80HHC did not arise. Finally, the FAA upheld the order of the AO. 4. During the course of hearing before us, the AR stated that subsequent to the Taxation Laws (Amendment Act, 2005)provisions with regard to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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