TMI Blog2006 (10) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... . Similarly, for the assessment year 1989-90, he denied the benefit of section 80HHC in so far as the interest income is concerned. Aggrieved by the same, the assessee filed two appeals. The appellate authority passed a common order. The appellate authority accepted the contention of the assessee with regard to interest income, job work tailoring and nomination profits for the purpose of benefit under section 80HHC of the Act. The Revenue moved the Tribunal. The appeal of the Revenue was accepted. It is in these circumstances, the appellant-assessee is before us. The assessee has raised the following two questions of law for our consideration: "(1) Whether, on the facts and in the circumstances of the case, the interest, job tailoring r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port business. Section 80HHC(1) would read as under: "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 of the profits derived by the assessee from the export of such goods or merchandise:..." Section 80HHC(3) would read as under: "80HHC. (3) For the purposes of sub-section (1), (a) where the export out of India is of goods or merchandise manufactured by the assessee, the profits derived from such export shall be the amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has negatived the contention in terms of his order. The Appellate Commissioner has chosen to accept the same. The Tribunal has chosen to reject the same. The Tribunal in the impugned order, notices section 80HHC and thereafter the Tribunal would hold that unless there is a relationship of interest income to the export business, the appellant is not entitled for deduction under section 80HHC of the Act. This principle of law cannot be doubted. The material facts would show that interest in terms of the material on record was obtained out of temporary deposit made by the assessee in the bank in terms of the order of the assessing authority. The material on record would not show that this interest income is referable to the export business. No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the purpose of benefit in terms of section 80HHC of the Act. In the circumstances, we are of the view that a fact finding is necessary at the hands of the Tribunal in so far as these two items are concerned in terms of section 80HHC of the Act. We deem it proper to remand the matter to the Tribunal. In the result, this appeal is partly accepted. The first question of law is partly answered in favour of the Revenue, in so far as the interest income is concerned. In so far as job tailoring receipts and nomination profit are concerned, the questions of law are not answered. Similarly, the second question of law is also not answered on the facts of this case. As mentioned earlier, the matter is remitted back to the Tribunal for redecision. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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