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TMI Blog2022 (8) TMI 360X X X X Extracts X X X X X X X X Extracts X X X X ..... tated that for computation of deduction under section 80HHC(3)(c), losses suffered by the assessee in the export of trading goods are to be set off / adjusted against profits from export of manufactured goods and vice versa and the assessee would not be entitled to deduction, if after such adjustments/ set off the net figure is a loss Applying the aforesaid legal proposition to the facts of the present case, this court is of the view that there is no infirmity in the order so passed by the Tribunal, warranting interference. As such, the substantial question of law raised herein is answered in favour of the Revenue. - T.C.A.Nos.874 and 875 of 2010 - - - Dated:- 27-6-2022 - Honourable Mr. Justice R. Mahadevan And Honourable Mr. Justi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on 28.11.1997 admitting an income of Rs.22,60,860/- after claiming deduction under Section 80HHC at Rs.55,01,444/- and the same was processed under Section 143 (1) (a) of the Act by accepting the income returned, on 28.03.2000. However the said assessment was re-opened by issuance of notice under section 148 on 28.03.2001. In response, the assessee raised objection by reply dated 23.04.2001, stating that they disclosed all the income and there was no escapement of assessment of income. The Assessing Officer overruling the objection of the assessee, restricted the Assessee's claim under section 80HHC to Rs. NIL as against the claim of Rs.55,01,444/- and computed the total income at Rs.84,92,233/-; and passed the reassessment order on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er another limb of the same section, should be allowed in full without setting off the negative figure emerging from the first limb. Whereas, it is the stand of the Revenue that deduction under section 80HHC can be permitted only if there is a positive profits after taking note of the export of both self manufactured as well as trading goods and if there is a loss in either of the two, then the same has to be taken into account for the purpose of computing profits; and in other words, the deduction should be taken as a whole and the loss derived by the assessee from one limb of the business should be set off against the profit of other limb of the business. Such being the rival contentions, though the CIT(A) allowed the claim of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was categorically stated that for computation of deduction under section 80HHC(3)(c), losses suffered by the assessee in the export of trading goods are to be set off / adjusted against profits from export of manufactured goods and vice versa and the assessee would not be entitled to deduction, if after such adjustments/ set off the net figure is a loss . 8. Applying the aforesaid legal proposition to the facts of the present case, this court is of the view that there is no infirmity in the order so passed by the Tribunal, warranting interference. As such, the substantial question of law raised herein is answered in favour of the Revenue. Accordingly, both the tax case appeals filed by the assessee stand dismissed. No costs. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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