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2006 (2) TMI 152

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..... xtent of Rs. 2,70,000 on the ground that no interest was charged on the trade advance of Rs. 15 lakhs? 2. Whether, on the facts and circumstances of the case, the Income-tax Appellate Tribunal has erred in holding that under section 80HHC of the Income-tax Act no deduction was allowable on the amount of Rs. 10,80,571 on the ground that there was no direct nexus between these receipts and the export business of the appellant-assessee?" The dispute relates to the assessment year 1992-93. The assessee is engaged in the manufacture and sale of suji, aata, rawa, maida, etc. In the year 1989, the assessee claimed that they had advanced a sum of Rs. 15 lakhs from their C. C. bank account to one party- M/s. Central India High Tech, Bhopal for s .....

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..... counsel with Shri D. S. Kale, learned counsel for the appellant and Shri R. L. Jain, learned senior counsel with Ku. V. Mandlik for the respondent. Having heard learned counsel for the parties and having perused the record of the case, we are inclined to dismiss the appeal by answering question No. 1 against the assessee and in favour of the Revenue. Coming to question No. 1, in our considered opinion, once the Tribunal records a finding on the transaction in question as not genuine then in such eventuality, it being a finding of fact, the same is binding on this court. In other words, the question whether the transaction entered into by the appellant with a particular party namely-Central India High Tech Ltd. for supply of certain raw .....

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..... n No.1 against the appellant (assessee) and in favour of the respondent, i.e., the Revenue. Coming to the second question, the Tribunal decided the issue against the appellant by recording the following finding in paragraph 19 of the impugned order: "Paragraph 19.-If the facts of the instant case are viewed in the light of the ratio laid down by the apex court and various High Courts in the aforementioned cases, we would find that nothing has been placed on record on behalf of the assessee to prove that the profit/income derived from the service charges and commission received on imports amounting to Rs. 6,13,989 and Rs. 4,66,581 as forwarding charges, weighment charges, cash discounts, octroi refund and other incomes, is intricably con .....

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..... rtmental authorities that there exists a direct nexus with their income derived from an industrial undertaking with that of claim made under various heads enumerated supra, then only they were entitled to claim the benefit of the profit/income earned, else not. Since the Tribunal itself failed to give any finding on facts so far as these issues are concerned, this court is equally unable to give any finding on these issues. As observed supra, when the Tribunal felt handicapped in recording a finding on the facts then how can this court record any finding on the facts for the first time. This court can examine the issue of law either on admitted facts or when the finding of fact is already recorded by the Tribunal. But as observed supra, w .....

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