YARN SYNDICATE LTD Vs. DY CIT

JUDGEMENT

(1.) This is an appeal filed by the assessee against the order of the Commissioner (Appeals) dated 30-11-1995.

(2.) The grievance of the assessee vide this appeal is that the learned Commissioner (Appeals) erred in wrongly upholding the figure of deduction under section 80HHC at Rs. 198,62,147 against Rs. 3,94,62,341 claimed by the assessee.

(3.) The assessee was of the view that even if the export operations resulted in a loss, it will not be adjusted with 10 per cent of the export incentive to arrive at the allowable deduction. The claim was rejected by the assessing officer and action of the assessee in ignoring the loss and taking at nil was not considered by the assessing officer in accordance with sub-section (3) of section 80HHC. The assessing officer was of the view that profit also means loss as in any other section of Income Tax Act.