TMI Blog1992 (6) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... m as a going concern. On 6-7-1983 an agreement was entered into between the firm and the assessee-company for transfer of the entire business with all its assets and liabilities w.e.f. 1-7-1983. It was recited that the intention was to convert the firm into a company and that the business of the firm shall be continued by the company as if the company was the successor-in-title. For the assessment year 1984-85 corresponding to the previous year ended 30-6-1983 the firm had an export turnover of Rs. 1,13,37,796. After the assessee-company took over the business, for the assessment year 1985-86 corresponding to the previous year 30-6-1984, the turnover was Rs. 1,50,17,165. The assessee claimed that it was entitled under section 80HHC, deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trued. 5. On the other hand, the Revenue supported the orders of the authorities below by contending that the object of the section was to encourage increase in export by the assessee and therefore a comparison with the turnover of the predecessor would not be envisaged. It was submitted that as far as the assessee was concerned, since the assessee was not in business in the earlier year there was no question of giving any deduction in respect of increase in turnover. It was also submitted that section 80HHC being in the nature of exemption it should be strictly construed and in the absence of a provision similar to the Explanation in section 33(4) the deduction was not admissible to a successor company. 6. On a consideration of the riv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the successor in fact steps into the shoes of his predecessor and unless the language of the statute plainly and clearly compels a construction to the contrary, the normal rule of the law should be given its proper play. In the present case there is a specific agreement between the firm and the assessee treating the assessee-company as a successor-in-title and therefore for the purpose of ascertaining the turnover of the immediately preceding year the export turnover of the firm cannot be ignored. It is pointed by the Revenue that there is no specific provision in this section unlike section 33. However there is no prohibition either in this section for taking the increase in turnover of the predecessor-in-title. If the construction propos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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