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For Calculating 90% of Commission, Brokerage etc under Expl (baa) to section 80HHC netting of income from expenditure is allowed
Case Law Details
- Case Name
- M/s ACG Associated Capsules Pvt. Ltd. Vs The Commissioner of Income Tax (Supreme Court of India)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- Supreme Court of India
ACG Associated Capsules Pvt. Ltd Vs. CIT (Supreme Court)- Memorandum explaining the clauses of the Finance Bill, 1991 contained in the circular dated 19.12.1991 of the Central Board of Direct Taxes to come to the conclusion that the Parliament intended to exclude items which were unrelated to the export turnover from the computation of deduction and while excluding such items which are unrelated to export for the purpose of Section 80HHC, Parliament has taken due note of the fact that the exporter assessee would have incurred such expenditure in earning the profits and to avoid a distorted fi...
The apex court has upheld the view taken by the Special Bench of the Tribunal in Lalsons case on the issue of “netting” of interest, rent etc.That decision was authored by Sri R V Easwar, Judicial Member(as His Lordship then was) and the reasoning given by the apex court is exactly the same as given by the Tribunal.
The apex court has also explained the scope of its earlier decision in Ravindran Nair”s case which has been wrongly relied on by the Dept to deny many a legitimate claim of manufacturers.