The assessee exported cut and polished diamonds. It also undertook the work of other exporters on contract basis and gave the work of cutting and polishing of diamonds on sub-contract. The assessee claimed deduction under section 80HHC of the  Act. On the receipts on account of reassortment charges and labour commission charges. The AO  excluded such amounts for the purpose of deduction under S.80HHC. The CIT (A) allowed the appeal filed by the assessee. The Tribunal recorded that the reassortment charges were nothing but commission received by the assessee from the diamond traders when the assessee facilitated the sale of their goods to foreign buyers and that the labour commission was received by the assessee from other diamond dealers for cutting and polishing the diamonds. The Tribunal held that such receipts were not includible in the business profits for the purpose of computation of special deduction under S.80HHC and allowed the appeal filed by the Department. On appeal  High Court held that the Tribunal was not justified in excluding from the total business income of the assessee the receipts of reassortment charges and the labour commission for the purpose of calculation of deduction under S.80HHC of the Act. (AY. 1991-92)