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| The Tax Publishers2019 TaxPub(DT) 0653 (Mad-HC) INCOME TAX ACT, 1961
Section 80HHB
Since the Statute has clearly circumscribed as to what is a foreign project and findings recorded by CIT(A) that the scope of work done by assessee would fall within the meaning of the expression 'foreign project' as defined under sub-section (2)(b) of section 80HHB, therefore, assessee was entitled for deduction.
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Deduction under section 80HHB - 'Profits derived' from the business - -
Assessee took up a foreign project through one M/s. E. They filed Form 10CCAH under the Act and claimed deduction under section 80HHB. AO, on scrutiny of Form 10CCAH, issued a show cause notice to assessee calling upon them to explain as to why deduction under section 80HHB should not be disallowed, since the said foreign project was not a foreign project within the meaning of section 80HHB. Held: The expressions 'business of execution of a foreign project' or work forming part of it or the 'profits derived' from the business, take in all aspects of a business involving the activities referred to in sub-section (2)(b) of section 80HHB together with all activities, commitments and obligations ancillary and incidental thereto and the profits flowing therefrom. The Statute has clearly circumscribed as to what is a foreign project and findings recorded by CIT(A) that the scope of work done by assessee would fall within the meaning of the expression 'foreign project' as defined under sub-section (2)(b) of section 80HHB. Accordingly, assessee was entitled for deduction.
REFERRED : Commissioner of Customs (Import) v. Dilip Kumar & Company & Ors. 2018 SCC Online SC 747 and Continental Construction Limited v. Commissioner of Income Tax (1992) 195 ITR 81(SC) : 1992 TaxPub(DT) 1016 (SC)
FAVOUR : In assessee's favour
A.Y. :
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