Court held that\u00a0 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\u00a080HHC\u00a0and not the gross interest income. Followed<\/p>\n
ACG Associated Capsules (p.) Ltd. v. CIT\u00a0[2012] 343 ITR 89<\/a>\u00a0(SC) and CIT v. Eli lilly and Co. (India) (P) Ltd.\u00a0[2009] 312 ITR 225<\/a>\u00a0(SC)\u00a0 Court also held that<\/p>\n \u00a0the 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\u00a080HHC<\/p>\n CIT v. Motor Industries Co Ltd.\u00a0[2011] 331 ITR 79<\/a>\u00a0(Karn) (HC) , CIT v. Robert Bosch (India) Ltd.\u00a0[2014] 2 ITR-OL 97<\/a>\u00a0(Karn)(HC) , CIT v. K. Ravindranathan Nair\u00a0[2007] 295 ITR 228<\/a>\u00a0(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)<\/p>\n","protected":false},"excerpt":{"rendered":" S.80HHC : Export \u2014Reduction of 90 Per Cent. of net (and not gross) Income from interest, commission and technical services \u2014 Income from technical services cannot be reduced by 90 Per Cent. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-14302","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3IG","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14302","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=14302"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14302\/revisions"}],"predecessor-version":[{"id":14303,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14302\/revisions\/14303"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=14302"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=14302"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=14302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}