CIT Vs. BABY MARINE EXPORTS

JUDGEMENT

(1.) THE controversy involved in these appeals revolves around a short but important question of law - whether the export house premium received by the assessee is includible in the "profits of the business" of the assessee while computing the deduction under Section 80HHC of the Income Tax Act, 1961? Since a common question of law arises for consideration in these appeals, therefore, they are being disposed of by this common judgment. However, for the sake of reference, the essential facts of Civil Appeal No. 6146 of 2005 are reproduced as under.

(2.) THE respondent-assessee, M/s Baby Marine Exports, Kollam is engaged in the business of selling marine products both in domestic market and also exporting it. THE assessee is exporting directly to the buyers and also through export houses.

(3.) THE assessee has shown the export premium as part of sale consideration having an element of turnover and not commission or service charges.