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TMI Blog2019 (12) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... een made on the basis of net receipts and not gross receipts. The substantial questions of law at (ii), (iv) and (v) are answered accordingly. The revenue will therefore have to rework the assessment on such basis and extend the necessary benefits, if any, to the appellant within a reasonable period. The impugned orders are modified accordingly. Tribunal not permitting adding losses from export of trading goods in respect of disclaimed turnover to the profit eligible for deduction under Section 80HHC - HELD THAT:- The substantial question of law at (vi) is consequently answered in favour of the assessee-appellant and against the revenue-respondent as relying on own case [ 2012 (4) TMI 344 - BOMBAY HIGH COURT] . The impugned orders are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ader charges and machinery hire charges was to be reduced while computing the profits of the business for the purpose of deduction under Section 80HHC of the Act ? iv) Whether the Tribunal was right in law in holding that Clause (baa) of the Explanation below Section 80HHC, requires 90 % of the gross receipts instead of net receipts when the only controversy before it was the manner of computation of net receipts? v) Whether the Tribunal was right in law in holding that Clause (baa) of the Explanation below Section 80HHC, requires 90% of the gross receipts instead of net receipts, which resulted into enhancing the income of the Appellant ? vi) Whether on the facts and in law, the Tribunal was right in not pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Mr. Diniz, learned Counsel for the appellant, then submits that the substantial question of at law at (vi) above stands fully answered in favour of the appellant and against the revenue by the decision of this Court dated 27.03.2012 in the case of The Commissioner of Income Tax vs. V. M. Salgaonkar Brothers Ltd. anr. in Income Tax Appeal Nos.5, 6 and 7 of 2002. 6. Ms. Razaq, the learned Standing Counsel for the respondent defends the impugned order in the present case on the basis of the reasoning reflecting therein and submits that this appeal may be dismissed. 7. Having perused the record, we find that the substantial question of law at (ii), (iv) and (v) above relate to one and the same issue namely, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n , ninety per cent of such quantum of the receipt of rent or interest will not be deducted under clause (1) of Explanation (baa) to Section 80HHC. In other words, ninety percent of not the gross rent or gross interest but only the net interest or net rent, which has been included in the profits of business of the assessee as computed under the head Profits and Gains of Business or Profession , is to be deducted under clause (1) of Explanation (baa) to Section 80HHC for determining the profits of the business. (Emphasis supplied). 9. From the aforesaid, it is quite clear that the substantial questions of law at (ii), (iv) and (v) will have to be answered by holding that the revenue was quite right in making the deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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