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TMI Blog2006 (1) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of the Income-tax Appellate Tribunal in I.T.A. Nos. 191(Mds.)/2000 dated March 7, 2005. The Revenue is the appellant. The assessee is a textile processor and exporter of hosiery fabric. The assessee filed a return of income on November 29, 1996, and after completing assessment on March 9, 1999, the Assessing Officer excluded the dyeing charges in terms of Explanation (baa) to section 80H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee, there is no merit in the appeal and accordingly, dismissed the same. Hence, the present appeal by the Revenue raising the following substantial questions of law: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in holding that only 90 per cent. of the profit element in the dyeing charges received by the assessee could be reduced from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -but for that operation the export cannot be made-is an income earned by using the entire undertaking of the company, i.e., machinery and power and other, manufacturing and administrative set up and therefore, the freezing and processing charges would definitely form part of one of the components of business profits, as the activity of freezing and processing would have a direct and immediate nexu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e total turnover and to exclude only the profit element of the dyeing charges from the profit of the business for the purpose of computing deduction under section 80HHC Since that order of the Commissioner of Income-tax (Appeals) has not been challenged by the assessee, as rightly held by the Tribunal, the Revenue may not have any grievance at all and hence, we find no merit in this appeal. Accor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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