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2013 (4) TMI 287 - ALLAHABAD HIGH COURTEntitlement to claim a deduction made u/s 80 HHC - sales made to foreign tourists against foreign currency, including counter sale - Held that:- The controversy involved in the present appeal stands concluded by the judgment of in the case of Ram Babu and Sons (1996 (5) TMI 61 - ALLAHABAD HIGH COURT). The said judgment has been approved by the in the case of Commissioner of Income Tax v. Silver & Arts Palace [2002 (12) TMI 12 - SUPREME Court] wherein held that Section 80HHC Explanation (aa) explains what is "export out of India". Any transaction by way of sale or otherwise in a shop or emporium which does not involve clearance at a customs station as defined in Customs Act, 1962, is thereby excluded from the expression "export out of India". There is no dispute between the parties that the transactions of counter sales effected by the respondent involved customs clearance within the meaning of Explanation (aa) to Section 80HHC(4A) and further that the sales were in convertible foreign exchange. In view of the above, the Tribunal was not correct in treating the counter sale to foreigners against foreign exchange as not export sale. It is held that such sales are export sales i.e. within the meaning of Explanation (aa) to Section 80HHC (4A) of the Act. The Tribunal was not right in not extending the benefit of Section 80HHC to counter sales made to foreign tourist against foreign currency. In this respect, the order of the Tribunal is set aside - in favour of the assessee.
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