Home › Income-Tax Act › CIT(LTU) v. Asea Brown Boveri Ltd. (2020) 427 ITR 166 / 192 DTR 376/272 Taxman 224 (Karn)(HC)

CIT(LTU) v. Asea Brown Boveri Ltd. (2020) 427 ITR 166 / 192 DTR 376/272 Taxman 224 (Karn)(HC)

S.80HHC : Export —Reduction of 90 Per Cent. of net (and not gross) Income from interest, commission and technical services — Income from technical services cannot be reduced by 90 Per Cent.

Court held that  the Tribunal was justified in holding that the net interest income should be reduced by 90 per cent. when computing profits of business for the purpose of allowing deduction under section 80HHC and not the gross interest income. Followed

ACG Associated Capsules (p.) Ltd. v. CIT [2012] 343 ITR 89 (SC) and CIT v. Eli lilly and Co. (India) (P) Ltd. [2009] 312 ITR 225 (SC)  Court also held that

 the Tribunal was justified in holding that the income from technical services could not be reduced by 90 per cent. when computing profits of the business according to Explanation (baa) to section 80HHC

CIT v. Motor Industries Co Ltd. [2011] 331 ITR 79 (Karn) (HC) , CIT v. Robert Bosch (India) Ltd. [2014] 2 ITR-OL 97 (Karn)(HC) , CIT v. K. Ravindranathan Nair [2007] 295 ITR 228 (SC), CIT v. Pfizer Ltd.( 2011) 330 ITR 62 (Bom) (HC) and Ingersoll-Rand (India) Ltd. v. CIT ( 2020) 427 ITR 158 (Karn) (HC) ( AY.1995-96)