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TMI Blog2024 (2) TMI 342X X X X Extracts X X X X X X X X Extracts X X X X ..... d Discs and was also paid in foreign exchange - As the dispute itself pertains to AY 2000-01 and the assessment of which went through several rounds of litigation. Suffice it to note that the ITAT an order [ 2011 (8) TMI 1376 - ITAT DELHI] had remanded the matter while partially allowing the appeal of the appellant and calling upon AO to consider the issue of deductions claimed under Section 80HHF - Pursuant to that order, a fresh assessment order came to be framed on 21 March 2013 and in which the AO held that the appellant had failed to fulfil the conditions laid down in the provision in question. It was this order which was assailed before the CIT (Appeals) which too came to be dismissed on 30 October 2014. As per Section 80HHF wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce the following salient facts. It is contended by the appellant that on meeting two U.S. nationals, he entered into a transaction, pursuant to which he prepared Discs and was also paid in foreign exchange. According to the assessee the aforesaid amount as obtained should be viewed as exports which would be covered under Section 80HHF of the Act. 4. In order to appreciate the submissions which stand addressed, we extract Section 80HHF of the Act herein below:- 80HHF. Deduction in respect of profits and gains from export or transfer of film software, etc. (1) Where an assessee, being an Indian company[or a person (other than a company) resident in India], is engaged in the business of export or transfer by any means out of India, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this behalf. This is a digitally signed order. (3) For the purposes of sub-section (1), profits derived from the business referred to in that sub-section shall be the amount which bears to the profits of the business, the same proportion as the export turnover bears to the total turnover of the business carried on by the assessee. (4) The deduction under sub-section (1) shall not be admissible unless the assessee furnishes in the prescribed form, along with the return of income, the report of an accountant, as defined in the Explanation below sub-section (2) of section 288, certifying that the deduction has been correctly claimed in accordance with the provisions of this section. (5) Where a deduction under this section is c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or celluloid film positive, magnetic tape, digital media or other optical or magnetic devices and certified by the Board of film certification constituted by the Central Government under Section 3 of the Cinematograph Act, 1952; (e) music software includes series of sounds or music recorded on magnetic tape, cassette, compact discs and digital media which can be played or reproduced on any appropriate apparatus; (f) profits of the business means the profit of the business as computed under the head profits and gains of business or profession as reduced by (A) ninety per cent of any receipts by way of brokerage, commission, interest, rent, charges or any other receipt of a similar nature included in such profits; and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the ITAT an order of 05 August 2011 had remanded the matter while partially allowing the appeal of the appellant and calling upon the Assessing Officer [ AO ] to consider the issue of deductions claimed under Section 80HHF of the Act. Pursuant to that order, a fresh assessment order came to be framed on 21 March 2013 and in which the AO held that the appellant had failed to fulfil the conditions laid down in the provision in question. It was this order which was assailed before the Commissioner of Income Tax (Appeals) which too came to be dismissed on 30 October 2014. 6. As we read the provisions of Section 80HHF of the Act, it is evident that what the provision contemplates is the export of transfer of film software, television soft ..... X X X X Extracts X X X X X X X X Extracts X X X X
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