Deduction u/s 80HHC can be allowed only if there is a positive profit

Last updated: 30 September 2007

Court :
Supreme Court

Brief :
THIS is a rare case where the assessee lost consistently at all stages from AO, through, Commissioner (Appeals), ITAT, High Court and now the Supreme Court. For the assessment year 1992-93, the assessee appellant had claimed deduction under Section 80-HHC of the Income Tax Act. The assessing officer disallowed the claim on the ground that the 'profits of the business' computed under Section 80-HHC indicated a negative figure. An appeal was preferred before Commissioner of Income-Tax (Appeals), who also was of the same view and dismissed the appeal. The assessee failed before the ITAT also and the following questions were referred to the High Court.

Citation :