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TMI Blog2009 (9) TMI 1018X X X X Extracts X X X X X X X X Extracts X X X X ..... his order dated 29-12-2006 for the assessment year 2004-05. First we will deal with assessee s appeal in ITA No.131/Ahd/2008. 2. The only issue in this appeal of the assessee is as regards to the applicability of the second proviso to sub-Section 3 to Section 80HHC of the Act, for the allowance of deduction u/s.80HHC of the Act in respect of income from DEPB licence. For this, the assessee has raised the following ground:- 1. The CIT (Appeals) has erred in law and on facts in holding that the export turnover of the company u/s. 80HHC is more than ₹ 10,00,00,000/- and therefore, is not eligible for the benefit of deduction provided in the second proviso to Sub-section 3(e) to Section 80HHC. It is submitted that the company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turnover is below ₹ 10 crores, the assessee is entitled to relief as per the amended provision. Accordingly, this issue is set aside to the file of Assessing Officer as indicated above and this issue of the assessee s appeal is allowed for statistical purposes. Now we take up the Revenue s appeal in ITA No.507/Ahd/2008. 4. The first issue in this appeal of Revenue is against the order of CIT(A) in directing the Assessing Officer to exclude excise duty and sales tax from the total turnover for the purpose of computing deduction u/s.80HHC of the Act. 5. At the outset, we find that the issue is squarely covered in favour of the assessee and against the Revenue by the decision of Hon ble apex court in the case of CIT vs. Laksh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the export house in the capacity of supporting manufacturer. The export house has exported the goods for a total consideration of ₹ 1,77,37,244/- and the export house had earned profit in respect of the said transaction and has issued disclaimer certificates. The assessee had claimed deduction u/s.80HHC for a sum of ₹ 4,84,824/- on the basis of disclaimer certificates. The AO has disallowed the said claim on the ground that the Export house is not having any positive claim of deduction u/s.80HHC on the exported trading goods as per the certificates issued by Clariant, but it has made profits on export of goods supplied by the company to them. Against sales value of ₹ 1,64,43,471/-, the corresponding export turnover of Cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2 As regards disallowance of deduction u/s.80HHC on disclaimer certificate issued by M/s. Clariant (India) Limited, it is noticed that the appellant has sold its own manufactured goods worth ₹ 1,64,43,471/- to M/s. Clariant (India) Ltd., an export house as supporting manufacturer. The Export House has earned profit in respect of the said transaction and has issued disclaimer certificate on the basis of which the appellant has claimed deduction u/s.80HHC for a sum of ₹ 4,84,824/- u/s. 80HHC. The Assessing Officer has disallowed the said claim on the ground that the Export House is not having any positive claim of deduction u/s. 80HHC on the exported trading goods. In my view once disclaimer certificate is received., it is not re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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