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Section 80HHC of the Income-tax Act, 1961 - Deductions - Exporters - Assessment year 1991-92 - Whether profit should be reduced by amount of carried forward depreciation and investment allowance before allowing deduction under section 80HHC - Held, yes FACTS The assessee-company had claimed deduction under section 80HHC. The Assessing Officer allowed the deduction after reducing the profits derived by the assessee from export of goods by the amount of carried forward unabsorbed depreciation and investment allowance. The Commissioner (Appeals) confirmed the action of the Assessing Officer. In second appeal also, the assessee could not succeed. On an appeal to the High Court : HELD The Tribunal was justified in reducing the profits by amount of carried forward depreciation and investment allowance before allowing deduction under section 80HHC. The appeal was to be dismissed accordingly. [Para 7] CASE REVIEW Synco Industries Ltd. v. Assessing Officer (Income-tax) [2008] 299 ITR 444/ 168 Taxman 224 (SC) andCIT v. Shirke Construction Equipment Ltd. [2007] 291 ITR 380/ 161 Taxman 212 (SC) followed. CASES REFERRED TO CIT v. Kotagiri Industrial Co-operative Tea Factory Ltd. [1997] 224 ITR 604/ 91 Taxman 214 (SC) [Para 3], Synco Industries Ltd. v. Assessing Officer [2008] 299 ITR 444/ 168 Taxman 224 (SC) [Para 4], CIT v.Shirke Construction Equipment Ltd. [2007] 291 ITR 380/ 161 Taxman 212 (SC) [Para 4] and IPCA Laboratory Ltd. v. Dy. CIT [2004] 266 ITR 521/ 135 Taxman 594 (SC) [Para 6]. J.P. Shah for the Appellant. Manish R. Bhatt for the Respondent. JUDGMENT D.A. Mehta, J. - This appeal was admitted after formulating the following substantial question of law :- "Whether, on the facts and in the circumstances of the case, the Tribunal ought to have allowed section 80HHC relief in respect of the "profits derived by the assessee from the export of goods" without reducing the said profits by the amount of carried forward depreciation and investment allowance?" 2. The assessment year in question is 1991-92, the relevant previous year being financial year ended on 31-3-1990. The appellant-assessee claimed deduction under section 80HHC of the Income-tax Act, 1961 ("the Act")…

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