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TMI Blog1988 (8) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... m other sources instead of business income and thereby confirming the action of AO in disallowing the deduction under s. 80HHC in regard to alleged receipt of licence premium of Rs. 96,720. (2) On the facts and in the circumstances of the case as well as on the subject, learned CIT(A) has erred in confirming the action of AO in reducing the deduction under s. 80HHC by the amount equal to 10 per cent of the licence premium. (3) On the facts and in the circumstances of the case, as well as on the subject, learned CIT(A) has erred in confirming the action of AO in disallowing car expenses and depreciation on car for personal use. Even otherwise, the deduction under s. 80HHC should have been increased to that extent. (4) On the facts a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case as well as on the subject, learned CIT(A) has erred in confirming the action of AO in reducing the deduction under s. 80HHC by the amount equal to 10 per cent of the licence premium. (3) On the facts and in the circumstances of the case as well as on the subject, learned CIT(A) has erred in confirming the action of AO in disallowing car expenses for personal use. Even otherwise, the deduction under s. 80HHC should have been increased to the extent of disallowance. (4) On the facts and in the circumstances of the case as well as on the subject, learned CIT(A) has erred in not entertaining the ground of assessee in regard to charging of interest under s. 234B. (5) It is, therefore, prayed that the licence premium of Rs. 20,21 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount of Rs. 96,720 and Rs. 20,21,746 on account of 8 per cent licence premium as business income of the assessee. 5. Coming to ground No. 2, the facts in brief are that the AO allowed deduction at 90 per cent of Rs. 5,20,830 in the case of Ami Diamond Exporters and 90 per cent of Rs. 38,88,410 in the case of M/s Vikas International as the above figures represented the profits earned by the assessees on sale of self-generated import licences against the claim of the assessees that 100 per cent deduction under s. 80HHC should be allowed on the profits of self-generated import licences in view of cl. (baa) of Explanation to s. 80HHC r/w proviso to s. 80HHC(3). The AO however held that the assessees export profit is required to be computed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s submitted that as profit is required to be reduced by 90 per cent of profit on sale of licences as per Explanation (baa) of s. 80HHC which is again to be increased by 90 per cent of profit on sale of self-generated licences, the assessee becomes entitled to deduction at 100 per cent and the Departmental authorities have completely ignored the provisions of cl. (baa) of Explanation to s. 80HHC. Accordingly it was submitted that the Departmental authorities have wrongly reduced the claim of deduction by the assessees under s. 80HHC by an amount equal to 10 per cent of the profit earned by the assessees on sale of self-generated licences. 8. The learned Departmental Representative supported the orders of the AO. 9. We have considered t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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