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TMI Blog2002 (7) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... e. same ratio that the export turnover bears to the total turnover and the total turnover may include both export turnover as well as other trading activities not necessarily export. He further erred in his direction to Assessing Officer to calculate the benefit in the following manner : Profit of the business Export turnover/Total turnover. 3. The assessee is a partnership firm. Up to the assessment year 1989-90, its business comprised only of transportation of goods and material. For and from the assessment year 1990-91, they started exporting oil seeds and extractions. Thus for both the years under appeal, the assessee had income from transportation business and from exports. The assessee claimed deduction under section 80HHC by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s claim to deduction under section 80HHC was totally rejected for the assessment year 1991-92. 4. In appeal, the ld. CIT(A) relied upon the CBDT s Circular No. 504 dated 5-7-1990 (184 ITR St. 137) and upheld the assessee s claim that the deduction had to be allowed with reference to the proportion of the profit worked out on the basis of export turnover over total turnover of the business. Being aggrieved, the Revenue is in appeal before us. 5. Before us, the ld. Departmental Representative relied upon a series of decisions of the Hon ble Jurisdictional High Court. Particular reliance was placed on the decision of the Hon ble Jourisdicational High Court in the case of CIT v. K.K. Doshi Co. [2000] 245 ITR 849. Reliance was also place ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n irrespective of what could strictly be described as profits derived from the export of goods or merchandise out of India. The deduction is computed in the following manner :- Profit of the business Export turnover/ Total turnover. 7. It was argued that the CBDT s Circular made it clear that export profit for the purpose of section 80HHC would not be profits and gains strictly derived from export of goods and merchandise and that the proportion of export profit has to be worked out on the basis of method laid down in para 4 of the said Circular, which is in line with sub-section (3) of section 80HHC. Reliance was placed on a large number of decisions in support of the plea that when there is a Circular of the CBDT, it would overr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, pleaded that the order of the ld. CIT(A) contained no infirmity and ought to be confirmed. In the alternative, it was argued that profits earned on sale of gunny bags in the assessment year 1991-92 ought to be treated as a part of the export business and export profit. 9. We have considered the rival submissions. We are bound to follow the ratio laid down by the Hon ble Jurisdictional High Court in the case of CIT v. K.K. Doshi Co. (supra) and the other decisions cited by the ld. DR. In our view, there is nothing in the particular issued by the CBDT, which mitigates against or goes beyond the interpretation faced by the Hon ble Jurisdictional High Court on the provisions of section 80HHC. Under the provisions of section 80HHC as the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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