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TMI Blog2015 (1) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... urn of income for the year under consideration on 21.11.1995, declaring his total income at 'Nil'. Pursuant thereto, the case of the assessee came to be processed on 26.03.1996 and a notice came to be issued under Section 148 of the Income Tax Act, 1961 (herein after referred to as 'the Act') on 25.03.1998. During the examination of the case of the assessee, the concerned AO found that the deduction was claimed by the assessee under Section 80HHC in contravention of the provisions of the Act. Later on, the AO disallowed the claim of the assessee for deduction under the aforesaid Section. Hence, the assessee carried the matter before the CIT(A), which dismissed the appeal of the assessee. Being aggrieved thereby, assessee car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsp;"80HHC. [(1) Where an assessee, being an Indian company or a person (other than a company) resident in India, is engaged in the business of export out of India of any goods or merchandise to which this section applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, [a deduction to the extent of profits, referred to in sub-section (1B),] derived by the assessee from the export of such goods or merchandise: ..." 4. Mr. Bhatt also invited our attention to explanation(4C) to the said section as well as explanation (d) and (e), thereto. He, then, submitted that in view of the same, the Tribunal erred in directing the AO to verify the calculation given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amounting to Rs. 21,41,462/- appearing in the credit side of the profit and loss account should to to reduce cost of purchases. Hence, this plea of the assessee is accepted." 8. Thus, from the above, it becomes clear that while reversing the findings of the CIT(A) on the aforesaid issue, the Tribunal has not assigned detailed reasons and has straightway stated that there is considerable force in the contention of the counsel of the assessee that refund of excise duty amounting to Rs. 21,41,462/- appearing in the credit side of the profit and loss account should reduce cost of purchases. The Tribunal as an appellate Court was required to look into the matter and was to give its independent findings on the aforesaid issue.' However, it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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