ROLLATAINERS LTD. vs. COMMISSIONER OF INCOME TAX

ITA - 166 / 2004HC Delhi06 July 20061 pages
For Petitioner: VIBHOOTI MALHOTRA
AI SummaryRemanded

What did the High Court hold?

The Tribunal held that deduction under Section 80HHC must be computed by apportioning profits of the entire business based on export turnover to total turnover. It also ruled that indirect costs for export of trading goods should be computed with reference to all costs, and write-back of liabilities is covered by explanation (6aa) of Section 80HHC.

What were the facts?

The appellant, Rollatainers Ltd., is contesting the Income Tax Appellate Tribunal's decision regarding the computation of deduction under Section 80HHC. The case involves the apportionment of profits and the treatment of indirect costs and write-back of liabilities.

What were the issues?

The key issues revolve around the correct method of computing deduction under Section 80HHC, specifically concerning profit apportionment, indirect cost allocation for export of trading goods, and the exclusion of write-back of liabilities.

Which sections of the Income-tax Act were involved?

Section 80HHC

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF DELHI AT NEW DELHI . ITA 166/2004 . ROLLATAINERS LOTD. ..... Appellant Through Mr.Ajay Vohra with Ms.Kavita Jha, Advocates versus . COMMISSIONER OF INCOME TAX ..... Respondent Through Ms. Prem Lata Bansal with Mr.Ajay Jha and Mr.Vishnu Sharma, Advocates . . . . CORAM: HON'BLE MR. JUSTICE MADAN B. LOKUR HON'BLE MR. JUSTICE VIPIN SANGHI .

O R D E R 06.07.2006 . .

Admit.

After hearing learned counsel for the parties the following substantial questions of law are framed for consideration - ?(1) Whether on the facts and in the circumstances of the case the Tribunal was correct in law in holding that deduction under Section 80HHC of the Income Tax Act had to be computed by apportioning the profits of the entire business in the ratio of export turnover to total turnover of the entire business? . (2) Whether on the facts and in the circumstances of the case the Tribunal erred in holding that for calculating profits derived from export of trading goods, indirect costs that need to be reduced from the export turnover of such goods had to be computed with reference

The order continues below.

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