9911796707
TMI Blog1994 (3) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... requirements of Notification No. 2007, dated June 6, 1967, and was, therefore, eligible to be exempted under section 104(3) of the Income-tax Act, 1961, from the liability to additional tax leviable under that section ? " For the assessment year 1967-68, the assessee, a company having income in India as well as in Ceylon, while filing a return of income, claimed benefit of a notification, namely, Notification No. 2007, dated June 6, 1967, issued under section 104(3) of the Income-tax Act. This claim was rejected by the Income-tax Officer holding that the gross receipts from the constructional operations in Ceylon were only Rs. 15,27,754 whereas the gross receipts from other businesses are Rs. 1,29,55,660, and as the gross receipts from co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ports and, in our view, buying and selling goods in Ceylon does not amount to rendering of any services outside India. Therefore, the other two types of receipts contemplated by proviso (2) (i.e., other than constructional receipts) are not there in the assessee's case. The question of making any aggregation, therefore, does not arise. In the assessee's case, 100 per cent. of the receipts from constructional operations relate to the operations outside India. The requirements of the notification are satisfied. The assessee is exempt from the applicability of the provisions of section 104. We agree with the conclusion of the Appellate Assistant Commissioner in this regard, though for different reasons. In the view that we have taken, we do no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar : Provided that--- (i) The company, is engaged in any business of exporting goods or merchandise out of India or in any business which involves the performance of any constructional operations or rendering of any service outside India ; and (ii) in respect of the said previous year, the amount of the sale proceeds derived by the company from the export of goods or merchandise out of India or gross receipts derived by it from the constructional operations or services rendered outside India, as the case may be, is fifty per cent. or more of the aggregate amount of the sale proceeds or, as the case may be, the gross receipts of the relevant previous year credited to the profit and loss account of the company. " The relevant clause for o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .88 lakhs ; we would set aside the order of the Appellate Assistant Commissioner and restore the appeal to his file. The Appellate Assistant Commissioner would determine the correct figure of constructional receipts in Ceylon and thereafter apply the ratio of our finding for the assessment year 1967-68 and decide the appeal afresh. Subject to this observation, the appeal for this year is treated as follows. " As we have held that the Tribunal erred in understanding the notification and as we have also held that the assessee had not satisfied the conditions prescribed in the notification, the assessment for 1968-69 also will have to be in the light of the interpretation given by us on the scope of the notification. However, Mr. P. P. S. Ja ..... X X X X Extracts X X X X X X X X Extracts X X X X
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