The Tax Publishers2019 TaxPub(DT) 7546 (Mum-Trib)

INCOME TAX ACT, 1961

Section 80HHD

Deduction under section 80HHD is calculated as a percentage of profit derived from services provided to foreign tourists. The mode and manner of computing such deduction has also been provided in said provision and accordingly, receipts transferred to other hoteliers and tour operators by issuing certificate in Form No. 10CCAC did not form part of business receipts to compute deduction under section 80HHD as per formula prescribed under the said provision.

Deduction under section 80HHD - Computation - Assessee claiming exclusion of receipts transferred to other hoteliers from total business receipts -

Assessee, a resident company, carrying on business as travel agent and tour operator claimed deduction under section 80HHD and sought for exclusion of receipts transferred to other hoteliers from total business receipts for computing deduction under section 80HHD.Held: Deduction under section 80HHD is calculated as a percentage of profit derived from services provided to foreign tourists. The mode and manner of computing such deduction has also been provided in said provision and accordingly, receipts transferred to other hoteliers and tour operators by issuing certificate in Form No. 10CCAC did not form part of business receipts to compute deduction under section 80HHD as per formula prescribed under the said provision.

Followed:Dy. CIT, Range--3 (3) and Range--3 (2), Mumbai v. Kuoni Travels India (P) Ltd. (Now merged with Travel Corporation (India) Ltd.) ITA No. 1851/Mum/2013, dated 28-2-2019 : 2019 TaxPub(DT) 2136 (Mum-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2004-05

INCOME TAX ACT, 1961

Section 80HHD

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