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TMI Blog2016 (9) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... asons, we answer the above referred question in favour of the Department. So far as the question of excluding 90% of excise duty refund credited in the profit and loss account in respect of manufacturing and merchant division is concerned, the CIT (A) as well as the Tribunal has rightly come to the conclusion after considering material placed before them and various decisions. We are in complete agreement with the said finding directing the AO not to exclude the excise duty refund insurance claim while computing the deduction u/s. 80HHC. - Tax Appeal No. 2145 of 2009 - - - Dated:- 26-7-2016 - KS Jhaveri And G. R. Udhwani, JJ. Mrs Mauna M Bhatt, Advocate for the Appellant Mr Tej Shah, Advocate for the Opponent JUDGMENT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epartment for refund of due paid. Relevant audited balance sheet and profit and loss account and supporting schedules are referred to before me in this respect. On verification it is found that the contention in this respect is correct. Since the net profit of business and profession will not get affected if the item of excise duty which is first debited in the profit and loss account and then refunded back are both excluded. As such the AO is directed not to exclude the same while working out deduction u/s. 80HHC. 3.6 x x x 3.7 It is submitted that this item is wrongly excluded. Having regard to the decision of ITAT, Ahmedabad in the case of Gujarat Alkalies Chemicals Ltd. Vs. DCIT 82 ITD 135, this item is not required to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich are included in the profits of the business as computed under the head Profits and Gains of Business or Profession . Therefore, if any quantum of the receipts by way of brokerage, commission, interest, rent, charges or any other receipt of a similar nature is allowed as expenses under Sections 30 to 44D of the Act and is not included in the profits of business as computed under the head Profits and Gains of Business or Profession , ninety per cent of such quantum of receipts cannot be reduced under Clause (1) of Explanation (baa) from the profits of the business. In other words, only ninety per cent of the net amount of any receipt of the nature mentioned in clause (1) which is actually included in the profits of the assessee is to b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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