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| The Tax Publishers2020 TaxPub(DT) 1169 (Guj-HC) INCOME TAX ACT, 1961
Section 80HHC
Claim of deduction of assessee under section 80HHC not to be available on the division/unit wise profits of the business and the same was available only on the entire business profit without differentiating between the units engaged in export and the units engaged in the domestic sales, therefore appeal of assessee was dismissed.
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Deduction under section 80HHC - Allowability - Turnover of all independent businesses to be clubbed -
Issue arose for consideration as to whether Tribunal was right in law in holding that for the purpose of calculation of deduction under section 80HHC, entire/global turnover of the business and not division/unit wise turnover of business was required to be taken into consideration without differentiating between units engaged in export activities and units engaged in domestic activities. Held: The only claim of assessee was that, it had two units and each unit should be considered separately but it being one and same business, the two units could not be separated and for the purpose of allowance of deductions under section 80HHC, the entire turnover of assessee had to took into account. Therefore, Claim not to be available on division/unit wise profits of the business and the same was available only on entire business profit without differentiating between the units engaged in export and the units engaged in the domestic sales
REFERRED : CIT v. Parry Agro Industries Ltd. (2002) 257 ITR 41 (Ker) : 2002 TaxPub(DT) 1267 (Ker-HC) Devraj R. Agarwal v. Asstt. CIT (2016) 389ITR 642 (Guj) : 2017 TaxPub(DT) 0038 (Guj-HC) Indian Spices Co. v. CIT 2004 TaxPub(DT) 0750 (Ker-HC) CIT v. Madras Motors Ltd. &Ors. (2002) 254 ITR 60 (Mad) : 2002 TaxPub(DT) 1253 (Mad-HC) CIT v. Jose Thomas (2002) 253 ITR 553 (Ker) : 2002 TaxPub(DT) 0958 (Ker-HC)
FAVOUR : Against the assessee
A.Y. :
IN THE GUJARAT HIGH COURT
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