TMI Blog2002 (3) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... not the Tribunal have taken the total turnover of the entire business including the Assam Tea Estate since as regards the tea business is concerned, the business as a whole in respect of all tea estates has to be taken together and is not the direction to the assessing authority accordingly wrong and unwarranted?" - IT APPEAL NO. 103 OF 1999 - - - Dated:- 13-3-2002 - Judge(s) : V. P. MOHAN KUMAR., K. K. DENESAN. JUDGMENT The judgment of the court was delivered by V.P. MOHAN KUMAR J.-The appeal is against the order passed in I.T.A. No. 680/Coch of 1994 by the Income-tax Appellate Tribunal, Cochin Bench. The assessment relates to the year 1989-90. The assessee admittedly is a company substantially interested and is deriving income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness including the Assam tea estates should be considered and the Tribunal restricted the turnover only to the Assam tea estate, if the entire sales are export oriented from the said unit. Aggrieved by the said order the Revenue has come up in appeal. The following substantial questions of law have been framed for consideration of this court: "1. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the profit derived from export is to be computed for the purpose of the relief under section 80HHC in accordance with clause (a) of sub-section (3) on Assam tea without taking into account the turnover of tea from other estates, provided the business there is exclusively of export of tea? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n a case where the assessee is engaged wholly in the business of export out of India of any goods, the deduction granted should be in accordance with section 80HHC(1). The stress under sub-section (1) is that it is attracted only if the profits are derived by the assessee exclusively from exports and not by indulging in any domestic trade. As such sub-section (1) is confined to and specifically relates to export trade. Sub-section (3) thereof indicates the manner of computation of the profits derived from the export of goods out of India where the assessee indulges in domestic trade as well. Clause (a) may not be applied here as admittedly the assessee is carrying on domestic trade as also export. The procedure in clause (b) would take when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect to export business while he carries on business which is a mixture of export as also domestic trade. There is no category of persons who have separate export business even when trading in domestic business. If we are to understand the argument of Mr. Jayasanker and hold that cases where the profits derived by the assessee from the export carried on by him can be separately grouped and in such case one need not have recourse to either clause (a) or (b) of sub-section (3) then it would amount to redrawing the Act by adding certain words to sub-section (3). Then sub-section (1) will have to be rewritten as under: "where an assessee is engaged in the business of export out of India of any goods or merchandise to which the said section app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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