9911796707
TMI Blog2011 (9) TMI 1075X X X X Extracts X X X X X X X X Extracts X X X X ..... ual background. The respondent assessee is a manufacturer exporter. For the assessment year 2002-2003, the assessee filed its return of income on 28.10.2002 declaring income of ₹ 1 crore 50 lakhs. In the return, the assessee had claimed deduction under Section 80HHC of the Income Tax Act, 1961. Part of the claim of assessee for reduction under Section 80HHC included income of ₹ 23,05,000/described as liabilities no longer required . The Assessing Officer was of the opinion that in view of explanation (baa) to Section 80HHC of the Act, such sum should be reduced from profit and gain of the business of the assessee. The assessee however, contended that said amount of ₹ 23,05,000/pertains to excise duty of the closing stock ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profits of business computed under the head Profits and gains of business and profession . The only income which can be excluded from Profits of business is that referred in clause (baa) of Explanation to Section 80HHC to the extent of 90% thereof. However, since the liabilities written back do not fall under any of the terms referred to in clause(baa) of section 80HHC and since the same form part of profits of business computed under section 28 of the Act, the same cannot be excluded only for the limited purpose of computing Profits of business for the purpose of computing deduction under Section 80HHC. Accordingly, there is no infirmity in the order of the learned CIT(A). 6. We have heard learned counsel for the Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic), (iiid) and (iiie) of Section 28 or of any receipt by way of brokerage, commission, interest, rent charges or any other receipts of similar nature. In the present case, sum sought to be reduced by the Assessing Officer was the excise duty liability previously provided but later on reversed. Since the assessee was no longer required to pay excise duty, profit of the assessee to that extent increased. Such profit therefore, was out of the export business of the assessee. Such profit cannot be stated to be of a similar nature as described in clause (iiia) to (iiie) of Section 28 or any receipts by way of brokerage, commission, interest, rent charges etc. 9. In our view, therefore, no question of law arises. Tax Appeal is therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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