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| The Tax Publishers2019 TaxPub(DT) 8047 (Bom-HC) INCOME TAX ACT, 1961
Section 80HHC
Ninety per cent of not gross income but only net income, is to be deducted under clause (1) of Explanation (baa) to section 80HHC for determining profits of business.
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Deduction under section 80HHC - Quantum of - Consideration of gross vis-a-vis net income -
Assessee challenged order of Tribunal upholding action of AO of deducting 90% of income from truck hire charges, barge hire charges, ore processing receipts, trans-shipper loader charges, machinery hire charges and launch hire charges while computing the “profits of the business” in accordance with Clause (baa) of the Explanation below section 80HHC. Held: Tribunal was justified in ordering 90% deduction of income from truck hire charges, barge hire charges, ore processing receipts, trans-shipper loader charges, machinery hire charges and launch hire charges while computing the profits of the business in accordance with Clause (baa) of the Explanation below section 80HHC. However, such deduction ought to have been made on the basis of net receipts and not gross receipts as held in the case of ACG Associated Capsules (P) Ltd. vs. CIT [(2012) 343 ITR 89 (SC) : 2012 TaxPub(DT) 0651 (SC)].
REFERRED :
FAVOUR : Partly in assessee's favour
A.Y. :
INCOME TAX ACT, 1961
Section 80HHC
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