Law:

Section:

Section 80HHD of the Income-tax Act, 1961 - Deductions - Hotels/tour operators Assessment year 1998-99 - Whether foreign receipts of assessee-hotel from its money changing activity carried on by it for its customers/guests on 'no profit no loss' basis would be included in total receipts of business for purpose of computing deduction under section 80HHD - Held, no FACTS The assessee-company was in the hotel business and qualified for benefit under section 80HHD. During assessment proceedings, the Assessing Officer included foreign receipts from money changing business and expenditure tax in the total turnover while computing deduction under section 80HHD. On appeal, the Commissioner (Appeals) excluded both the receipts from the total receipts of the business, i.e., 'total turnover' of the assessee. The Tribunal dismissed the revenue's appeal. On revenue's appeal to the High Court : HELD The Tribunal had noted that right from the beginning, the assessee had provided money changing facility to its customers/guests on no-profit-no-loss basis. It was for that reason that the assessee was not even allowed deduction under section 80HHD on the foreign receipts from its money-changing activity. Since the receipts with the money changer would not be eligible for computation of the deduction admissible under section 80HHD, same deserved to be excluded from the total turnover as a whole. [Para 4] Even in the succeeding assessment year, the Assessing Officer had not included the receipts in foreign exchange in money-changing activity. [Para 5] When there was a reasonable dispute as to whether the facility of money changer, which was provided on no-profit-no-loss basis, could even be treated as business activity of the assessee and, thus, formed part of total turnover, no interference in the order of the Tribunal was required. [Para 6] The Tribunal had not even addressed the issue relating to expenditure tax though it was specifically raised before the Tribunal. Therefore, the matter was to be remitted back to the Tribunal for its decision on that issue. [Para 7] CASES REFERRED TO CIT v. Lakshmi Machine Works [2007] 290 ITR 667 / 160 Taxman 404 (SC) (para 4). Ms. Prem Lata…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492