Section 80HHC of the Income-tax Act, 1961 - Deductions - Exporters

IT : Deduction under section 80HHC on DEPB was to be computed in light of Topman Exports v. CIT [2012] 342 ITR 49/205 Taxman 119/18 taxmann.com 120
IT : Compounding fee paid to Municipal Corporation for legalising construction of building is not allowable as business expenditure
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[2014] 52 taxmann.com 484 (Punjab & Haryana)
HIGH COURT OF PUNJAB & HARYANA
Nahar Spinning Mills Ltd.
v.
Commissioner of Income-tax, Ludhiana*
AJAY KUMAR MITTAL AND FATEH DEEP SINGH, JJ.
IT APPEAL NO. 338 OF 2008 (O & M)†
AUGUST  27, 2014
I. Section 80HHC of the Income-tax Act, 1961 - Deductions - Exporters (Computation of deduction) - Assessment year 2004-05 - Whether deduction under section 80HHC on export incentive, i.e., DEPB is to be computed in light of decision of Apex Court in Topman Exports v. CIT [2012] 342 ITR 49/205 Taxman 119/18 taxmann.com 120 - Held, yes [Para 8] [Matter remanded]
II. Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of (Compounding fees) - Assessment year 2004-05 - Whether amount of compounding fee paid by assessee to Municipal Corporation for legalising construction of its building was allowable as business expenditure - Held, no [Para 4] [In favour of revenue]