TMI Blog2005 (4) TMI 590X X X X Extracts X X X X X X X X Extracts X X X X ..... case and has referred the following question of law for our consideration and opinion and the same is as under: Whether on the facts and in the circumstances of the case, the ITAT is right in law in holding that the assessee is entitled to get 100% deduction under sec. 80-HHC respect of the export business? 2. In order to answer the question of law raised for our consideration and opinon, the facts in brief requires to be noticed. They are as under: The assessee is a registered partnership firm carrying on business of manufacture and sale of gold jewellery. the assessee during previous year relevant to the assessment years had carried on both export sales and domestic sales. For the assessment years 1989-1990 and 1990-1991, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the parties to the lis and following the decision of the tribunal in the case of V.D. Swamy Co.Ltd.Vs. DCIT-44 ITD 91, has concluded that the assessee is entitled to 100% deduction under Sec. 80-HHC of the Act in respect of export business. 5. The revenue by filing applications before the Tribunal under Section 256(1) of the Act, had made a request to the Tribunal to state the case and refer the question of law, which according to them would arise out of the orders passed by the Tribunal in ITA, Nos. 2085 2086/Bang/1992, for consideration and opinion of this Court, The Tribunal had rejected the request so made by the revenue. Therefore, the revenue was constrained to approach this Court in C.P.Nos.590 591/1995. This court by its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ires to be considered and decided by us is, whether the Tribunal was justified in allowing the assessee s appeals by holding that the assessee is entitled to 100% deduction under Sec.80-HHC of the Act in respect of its export business in gold jewellery? 9. The facts are not in dispute in the present case. The assessee is carrying on the business of manufacture and sale of gold jewellery. It has both export sales and domestic sales. It is also true that it maintains separate books of accounts for its export sales and domestic sales. 10. The circular issued by the Board in No. 564 dated 5.7.1990 184 ITR 137, states how the deduction under Section.80HHC(3)(b) of the Act is to be computed. The circular says, that, whether there are prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clusive of exports, it is clause (a) of sub-section (3) of sec.80-HHC of the Act would apply and if the business carried on by the assessee consists of exports of goods for merchandise and domestic business in the same goods, it is clause (b) of sub-section (3) of Sec.80-HHC of the Act would apply therefore, where the business carried on the the assessee consists of both export as well as local sales then the deduction could be allowed only in respect of of profits in proportion of the export turnover to the total turnover. That is what that was done by the assessing authority. However, the Tribunal, on the basis that the assessee has maintained separate books of accounts, has concluded that the assessee is entitled for 100% exemption forge ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
