Whether premium on sale of export quota is covered by Section 28(iiia), (iiic) and accordingly, has to be included while computing the deduction uneder sec 80HHC(3)

Court :
HIGH COURT OF DELHI

Brief :
Section 80HHC- Deduction in respect of profits retained for export business.— xxx (3) For the purposes of sub-section (1),-- (a) where the export out of India is of goods or merchandise manufactured or processed by the assessee, the profits derived from such export shall be the amount which bears to the profits of the business, the same proportion as the export turnover in respect of such goods bears to the total turnover of the business carried on by the assessee ; (b) where the export out of India is of trading goods, the profits derived from such export shall be the export turnover in respect of such trading goods as reduced by the direct costs and indirect costs attributable to such export ; (c) where the export out of India is of goods or merchandise manufactured or processed by the assessee and of trading goods, the profits derived from such export shall,-- (i) in respect of the goods or merchandise manufactured or processed by the assessee, be the amount which bears to the adjusted profits of the business, the same proportion as the adjusted export turnover in respect of such goods bears to the adjusted total turnover of the business carried on by the assessee ; and (ii) in respect of trading goods, be the export turnover in respect of such trading goods as reduced by the direct and indirect costs attributable to export of such trading goods : Provided that the profits computed under clause (a) or clause (b) or clause (c) of this sub-section shall be further increased by the amount which bears to ninety per cent of any sum referred to in clause (iiia) (not being profits on sale of a licence acquired from any other person), and clauses (iiib) and (iiic) of section 28, the same proportion as the export turnover bears to the total turnover of the business carried on by the assessee

Citation :
THE COMMISSIONER OF INCOME TAX V ...Appellant Through Ms. Rashmi Chopra, Sr. Standing Counsel. VERSUS NAGESH KNITWEARS P. LTD. ...Respondent Through Mr. Salil Aggarwal & Mr. Prakash Kumar, Advocates. ITA NOS. 993/2008, 994/2008,996/2008, 1010/2008 &955/2009, THE COMMISSIONER OF INCOME TAX V ...Appellant Through Ms. Rashmi Chopra, Sr. Standing Counsel. VERSUS ORIENT CRAFTS LTD. …Respondent Through Mr. Salil Aggarwal & Mr. Prakash Kumar, Advocates. ITA NOS. 832/2009 THE COMMISSIONER OF INCOME TAX V ...Appellant Through Mr. Kiran Babu, Sr. Standing Counsel. VERSUS VOGUE SETTERS …Respondent Through Mr. Salil Aggarwal & Mr. Prakash Kumar, Advocates.