COMMR. OF INCOME TAX vs. RESEARCH PARK LAB. LTD

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ITR/8/2001HC Delhi06 January 20102 pages
AI SummaryAllowed

What did the High Court hold?

The Tribunal held that the entire profits, including commission income, should be considered for the deduction under Section 80HHC. The High Court upheld this view, following Supreme Court decisions.

What were the facts?

The assessee received commission on the assignment of export orders. The revenue questioned whether this commission should be included in the profits for calculating deduction under Section 80HHC.

What were the issues?

Whether commission income received on assignment of export orders is includible in profits for Section 80HHC deduction.

Which sections of the Income-tax Act were involved?

Section 80HHC

AI-generated summary — verify with the full judgment below

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THE HIGH COURT OF DELHI AT NEW DELHI

Judgment delivered on: 06.01.2010

+ ITR 8/2001 & ITR 16/2001

COMMR. OF INCOME TAX ..... Petitioner

versus

M/S INTERNATILONAL RESEARCH PARK LAB. LTD

..... Respondent

Advocates who appeared in this case:- For the Petitioner

: Ms P. L. Bansal with Mr Paras Chaudhry For the Respondent : None

CORAM: HON'BLE MR JUSTICE BADAR DURREZ AHMED HON'BLE MR JUSTICE SIDDHARTH MRIDUL

1.

Whether Reporters of local papers may be allowed

to see the judgment?

2.

To be referred to the Reporter or not?

3.

Whether the judgment should be reported in Digest?

BADAR DURREZ AHMED, J (ORAL) 1. In these two references for the assessment years 1990-1991 and 1991- 1992, the following questions were referred to us for our decision:- (1) Whether the Tribunal is right in holding that for determining the quantum of deduction in respect of profits derived from export u/s 80HHC, the entire profits computed under the head “profits and gains of business or profession” including the income of the nature of commission is to be taken into account?

(2) Whether the Tribunal is right in holding that commission received by the assessee on assignment of export orders to another party in India will form part of profits eligible for deduction u/s 80HHC?

It is not necessary for us to examine these questions in detail inasmuch as 2010:DHC:4-DB

view of the Supreme Court decisions in the cases of P. R. Prabhakar v. CIT : (2006) 284 ITR 548 (SC) and CIT v. Baby Marine Exports : (2007) 290 ITR 323 (SC). Consequently, both the questions referred to us in these references are decided against the revenue and in favour of the assessee, following the Supreme Court decision referred to above. The references stand answered accordingly.

BADAR DURREZ AHMED, J

SIDDHARTH MRIDUL, J JANUARY 06, 2010 SR

2010:DHC:4-DB

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