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TMI Blog2021 (12) TMI 990X X X X Extracts X X X X X X X X Extracts X X X X ..... accordance with law. - Tax Case (Appeal) No.388 of 2005 - - - Dated:- 14-9-2021 - Hon'ble Mr. Justice T.S. Sivagnanam And Hon'ble Mr. Justice Sathi Kumar Sukumara Kurup For the Appellant : Mr.R.Vijayaraghavan for M/s. Subbaraya Aiyar Padmanabhan For the Respondent : M/s.K.G.Usha Rani Junior Standing Counsel JUDGMENT T.S. SIVAGNANAM, J. This appeal filed by the assessee under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity), is directed against the order, dated 24.03.2003, passed by the Income Tax Appellate Tribunal, Madras C Bench, ('the Tribunal' for brevity) in I.T.A.No.1966/Mds/1994 for the Assessment Year 1991-92. 2.The assessee has raised the following substantial question of law for consideration : Whether on the facts and in the circumstances of the case the Tribunal was right in their interpretation of Section 80HHC (3) and in restricting the relief under Section 80HHC? 3.We have heard Mr.R.Vijayaraghavan for M/s.Subbaraya Aiyar Padmanabhan, learned counsel for the appellant/assessee and Ms.K.G.Usha Rani, learned Junior Standing Counsel for the respondent/Revenue. 4.The assessee, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dismissed the appeal and challenging the said order, this Tax Case Appeal was filed by the assessee. 8.By judgment dated 18.07.2005, the appeal was dismissed by the then Hon'ble First Bench of this Court by placing reliance on the decision of the Division Bench of this Court in Commissioner of Income-Tax v. P.R.Prabhakar [276 ITR 176] , by judgment dated 18.07.2005. Aggrieved by the same, the appellant/assessee preferred an appeal to the Hon'ble Supreme Court in Civil Appeal No.3542 of 2007 . By order dated 30.03.2017, the appeal was allowed and the matter has been remanded to this Court for fresh consideration. 9.At this juncture, we refer to the order passed by the Hon'ble Supreme Court, which reads as follows: We have heard learned counsel appearing for the parties. The present petition arises out of the judgment and order dated 18th July, 2005 passed by the Hon'ble High Court of Judicature at Madras wherein the High Court following its earlier decision in the case of Commissioner of Income-Tax v. P.R.Prabhakar 276 ITR 176, dismissed the appeal. It has been brought to our notice that the decision in P.R.Prabhakar (Supra) has been revers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t turnover of the assessee in respect of such trading goods. ... (3)For the purposes of sub-section (1),- (a) where the export out of India is of goods or merchandise manufactured or processed by the assessee, the profits derived from such export shall be the amount which bears to the profits of the business, the same proportion as the export turnover in respect of such goods bears to the total turnover of the business carried on by the assessee; (b) where the export out of India is of trading goods, the profits derived from such export shall be the export turnover in respect of such trading goods as reduced by the direct costs and indirect costs attributable to such export; (c)where the export out of India is of goods or merchandise manufactured or processed by the assessee and of trading goods, the profits derived from such export shall,- (i) in respect of the goods or merchandise manufactured or processed by the assessee, be the amount which bears to the adjusted profits of the business, the same proportion as the adjusted export turnover in respect of such goods bears to the adjusted total turnover of the business carried on by the assessee: and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal market. The formula, as was existing prior to 1991 as stated in the circular, often used to provide a distorted figure of export profits when receipts like interest, commission, etc. which did not have an element of turnover were included in the profit and loss account and, thus, it was clarified that profits of the business for the said provision would not include receipt by way of brokerage, commission, interest or any other receipt of a similar nature. It was, however, categorically stated: ...As some expenditure might be incurred in earning incomes, which in the generality of cases is part of common expenses, ad hoc 10 per cent, deduction from such incomes is provided to account for these expenses. 8. The amendments in no uncertain terms were to take effect from 1.4.1992, i.e. for the assessment year 1992-93 and subsequent assessment years. Where, however, the provisions were to operate with retrospective effect the same had been categorically stated as, for example, in para 32.17 thereof, which is as under: 32.17. This amendment takes effect retrospectively from 1st April, 1986, the day on which the substituted section 80HHC took effect. It will, acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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