Assessed eligible for income tax deduction when separate account books are kept for export: Madras HC


The Madras High Court ruled that the appraised is entitled to a deduction under Section 80HHC of the Income Tax Act when separate books of accounts are kept in relation to the export.

The evaluated person, M / s.Ayshwarya Sea Food Pvt. Ltd. is engaged in seafood processing and shrimp food trade. The appraise claimed a deduction under section 80HHC and the claim was rejected by the appraisal officer on the grounds that the appraised ignored the losses he suffered in his business division and started his job. calculation with the number of profits made by the manufacturing division. Thus, the assessor considered that under Article 80HHC (1), the deduction must be allowed in the calculation of the total income of the appraised and, in doing so, the total income of the appraised, at the both the profits and the losses. , should be taken into consideration. The other issue to consider was whether the payments made by the assessed cash to the account of M / sCPAquaculture (India) Pvt. Ltd. should be affected by the provisions of section 40A (3) of the law. An explanation was offered by the evaluator, who did not find the approval of the evaluator. Therefore, the assessment was completed by denying the claim for deduction under section 80HHC of the Act and a denial of 20% was made with respect to cash payments.

The receipts raised the question of whether the Tribunal was correct in concluding that the appraisee is entitled to a deduction under Section 80 HHC when separate books of account are kept in respect of exports and other units. .

The Division Chamber of Judge TSSivagnanam and Judge Sathi Kumar Sukumara Kurup reviewed the decision of the Division Chamber in the case of the decision in Chamundi Textiles (Silk Mills) Ltd. the Bangalore unit deserved to be considered 100 percent. remedy, as falling under section 80HHC (3) (a) of the Act. “

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