2006 (6) TMI 100

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..... come-tax Act, 1961. Following is the question of law that has been referred for the decision of this court: "Whether, on the facts and circumstances of the case, was the Tribunal justified in holding that miscellaneous income such as agency commission duty drawback, service charges and rent received cannot be included in the profit for the purpose of computation of relief under section 80HHC of .....

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..... aid order, the assessee filed appeal before the Commissioner of Income-tax (Appeals). The Commissioner allowed the claim holding that the miscellaneous income referred to above is incidental to the business and is therefore eligible for deduction. Aggrieved by the same, the Revenue took up the matter in appeal before the Tribunal. The Tribunal held that the miscellaneous income such as agency comm .....

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..... ounsel placed reliance on the decision of this court in CIT v. V.T. Joseph [1997] 225 ITR 731. The apex court in IPCA Laboratory Ltd. v. Deputy CIT [2004] 266 ITR 521 examined the scope of sections 80AB, 80B(5) and 80HHC and held that a plain reading of section 80HHC makes it clear that in arriving at profits earned from export of both self-manufactured goods and trading goods, the profits and l .....

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..... cing export contracts. In V.T. Joseph's case [1997] 225 ITR 731 (Ker) the court while interpreting section 80HHC held that the claim for deduction under section 80HHC was restricted by the provisions of section 80AB and that the deduction under section 80HHC was to be allowed only to the extent of the income from export business included in the gross total income. Therefore deduction in respect of .....

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..... is the position with regard to rent also. Deduction is for the specified goods and admittedly receipts issued herein are not profit derived from the export of tea. So far as duty drawback is concerned, it was ordered that the assessing authority will decide the issue after ascertaining whether the receipt of duty drawback was incidental to the business of export of tea. In view of the aforement .....

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