Income Tax

Export profits

— Commission/brokerage for procuring export orders — AY 1990-91 — Deduction — Provision for deduction under S. 80-HHC, Income Tax Act, 1961 — Applicability — Held, applicable to assessees engaged in the business of export, including trading of goods — Income derived by such assessee towards commission/brokerage for procuring orders of export for other exporters, held, eligible for deduction — Case-law on principles of interpretation of exemption provisions discussed — Amendment to S. 80-HHC(3) by the Finance (No. 2) Act, 1991 w.e.f. 1-4-1992, limiting the extent of such deduction to 10%, held, prospective — High Court ex facie erred in holding that said amendment to be clarificatory and retrospective — Contention of the Revenue that such commission or brokerage became eligible to exemption to the extent of 10% for the first time w.e.f. 1-4-1992, rejected — CBDT Circular No. 621 dated 19-12-1991 clarified and held to be binding on the Revenue, (2006) 6 SCC 86-A

Income Tax

Income Tax Act, 1961

— S. 80-HHC — Object of enactment of, restated, (2006) 6 SCC 86-B