TMI Blog1992 (9) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... was carried only for 15 days and, therefore, the said year was not comparable for considering increase in export turnover for the purpose of above claim. The assessee challenged the disallowance in appeal before DC (Appeals) but without any success. The learned DC (Appeals) noted that export turnover in the last year was only a token turnover of Rs. 200 against Rs. 3,04,348 in this year. In his view it would be abuse of the legal provision to treat and compare last year's turnover with the annual turnover of this year and allow deduction u/s 80HHC of I.T. Act. The assessee being aggrieved, has brought the issue in appeal before the Appellate Tribunal. 3. Shri P.J. Khanna, learned representative of the assessee submitted that provision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the export turnover of such goods or merchandise during the previous year ; and (b) a deduction of an amount equal to five per cent of the amount by which the export turnover of such goods or merchandise during the previous year exceeds the export turnover of such goods or merchandise during the immediately preceding year. " The assessee has been allowed deduction under clause (a) on export turn over of Rs. 3,04,348 of the year under consideration and there is no dispute that all the general conditions of section 80HHC are satisfied. The dispute relates to claim under clause (b) of sub-section (1) which provides for further claim of 5 per cent of the amount by which export turn over of goods during the previous year exceeds export turn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is to encourage export to earn foreign exchange. Clause (b) in particular is intended to encourage better export performance than in the immiediately preceding year. The authorities below in imposing condition of export turn over of full year applied some unseen spirit of the provision. This deprivation of tax benefit on purely subjective analysis and beyond clear language, in our view, is not justified. The provision is entitled to liberal construction in consonance with its avowed aim and objective. The assessee clearly fulfilled all the conditions of clause (b) and is entitled to benefit of incremental turnover under clause (b) of sub-section. We direct the Assessing Officer to compute and allow the above deduction. In the result, ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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