Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: VAT Audit :: form 3cd :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: cpt :: Central Excise rule to resale the machines to a new company :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: empanelment :: VAT RATES
From the Courts »
 HITT Holland Institute of Traffic Technology B.V. vs. DDIT (ITAT Kolkata)
 Nagarjuna Fertilizers and Chemicals Limited vs. ACIT (ITAT Hyderabad) (Special Bench)
  CIT vs. India Advantage Fund-VII (Karnataka High Court)
 Principal Commissioner Of Income Tax (Central) Vs. M/s A2z Maintenance & Engineering Services Ltd.
 Pr. Commissioner Of Income Tax-19 Vs. Shri Neeraj Jindal
 Rollatainers Ltd. Vs. Commissioner Of Income Tax
 CIT vs. G K K Capital Markets (P) Limited (Calcutta High Court)
 CIT vs. Arpit Land Pvt. Ltd (Bombay High Court)
 CIT vs. Abacus Distribution Systems (India) Pvt. Ltd (Bombay High Court)
  ACIT vs. Mahesh K. Shah (ITAT Mumbai)

Circular on Deduction under s.80HHC -Clarifications
June, 21st 2006
  Topic Deduction under s.80HHC
  Summary The CBDT clarified that the benefit of s.80HHC of the Income Tax Act 1961 could not be denied to an assessee claiming refund of duty drawback under the Duty Drawback Rules 1995, as s.28(iiic) of the Act referred to Customs and Central Excise Duty Drawback Rules 1971, not 1995 Rules. However, the claim of deduction was subject to the fulfilment of all other conditions provided under s.80HHC of the Act. The clarification was applicable for the AY 1996-97 and subsequent assessment years.

Deduction under section 80HHC of the Income-tax Act, 1961

Section 80-HHC of the Income-tax Act, 1961, provides for deduction from the total income in respect of profits derived from the export of goods or merchandise, which are realized in convertible foreign exchange. The manner of computation of profit derived from such export has been provided in sub-section (3) of the said section.

2. The first proviso to section 80-HHC (3) stipulates that the profits computed under sub-section (3) of section 80-HHC shall be further increased by a proportionate amount of the sums of export benefits referred to in section 28 (iiia) (not being profits on sale of a licence acquired from any other person), section 28 (iiib) and 28 (iiic). Clause (iiic) to section 28 refers to any duty of customs or excise re-paid or re-payable as drawback to any person against exports under the Customs and Central Excise Duties Drawback Rules, 1971.

3. Customs and Central Excise Duties Drawback Rules, 1971 was replaced by Customs and Central Excise Duties Drawback Rules, 1995 vide notification No.37/95-Cus. and C.E. dated 26.5.1995. However, no corresponding changes were made in the Income-tax Act.

4. References have been received by the Board indicating that the assessing officers are denying the claim of deduction under section 80HHC on account of duty drawback granted to the assessee in accordance with Customs and Central Excise Duties Drawback Rules, 1995 as clause (iiic) of section 28 refers to Customs and Central Excise Duty Drawback Rules, 1971.

5. The matter has been examined by the Board. Rule 18 of the Customs and Central Excise Duties Drawback Rules, 1995 provides for Repeals and Savings of the Customs and Central Excise Duties Drawback Rules, 1971.

6. Section 8 of the General Clauses Act provides that where the General Clauses Act or any Central Act or Regulation made after the commencement of the General Clauses Act, repeals and re-enacts, with or without modification, any provision of a former enactment, then references in any other enactment or in any instrument to the provision so repealed shall, unless a different intention appears, be construed as reference to the provision so re-enacted.

7. By virtue of provisions of Section 8 of General Clauses Act, 1897, read with Rule 18 of the Customs and Central Excise Duties Drawback Rules, 1995, which provides for repeals and savings of the 1971 Rules, the benefit of section 80HHC cannot be denied to an assessee claiming refund of the duty drawback under Duty Drawback Rules, 1995. However, the claim of deduction has to be allowed subject to fulfillment of all other conditions provided under section 80HHC.

8. This clarification will apply to assessment years 1996-97 and subsequent assessment years.


Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions