Case Law Details
It is a pre-requisite that there must be profits from the export business. If the exports business has suffered a loss, deduction cannot be allowed from domestic business – Section 80HHC
Brief Facts of the Case and Question of Law
Brief Facts:
The appellant-assessee is engaged in the business of export of marine products and also financial consultancy and trading in equity shares. Its total business does not consist purely of exports but includes business within the country as well which situation is covered by Section 80HHC (3)(b). The total turnover of the Assessee comprised of export turnover of Marine products of Rs. 16,67,084 and Rs. 937,693/- earned from various sources like brokerage, dividend, interest and profit on sale of shares.
The assessee admittedly had not earned any profits from the export of the Marine products. On the other hand, it had suffered a loss from such exports. But there was a profit at entity level majorly because of income from brokerage, dividend, etc.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
