9911796707
TMI Blog2007 (7) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Appellate Tribunal was right in law in holding that the assessee as an exporter in the assessment year 1982-83 for claiming deduction of Rs. 2,80,955 under section 80HHC(1)(b) of the Income-tax Act, 1961, at 5 per cent. of incremental turnover of Rs. 56,19,099 (Rs. 56,66,189 - Rs. 47,090) ?" 2. Briefly noticed, the facts are that the assessee-company claimed deduction at the rate of 5 per cent. of the incremental turnover at Rs. 2,80,955 under section 80HHC of the Act for the assessment year 1983-84. The said amount was arrived at by reducing the export sales of the earlier year, i.e., Rs. 47,090 from the export turnover of the year under consideration, i.e., Rs. 56,66,189. The claim was not allowed by the Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee to oppose the reference made by the Tribunal. 5. We have heard learned counsel for the Revenue and find force in his submission. 6. It would be expedient to reproduce section 80HHC of the Act, as it stood at the relevant time, which reads thus : "80HHC. (1) Where the assessee, being an Indian company or a person (other than a company), who is resident in India, exports out of India during the previous year relevant to an assessment year 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, the following deductions, namely :- (a) a deduction of an amount equal to one per cent. of the export ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing goods or the merchandise during the previous year exceeds the turnover of such goods or merchandise during the immediately preceding year shall be available provided the assessee has exported out of India any qualifying goods or merchandise during the previous year immediately preceding the relevant previous year for which the deduction is claimed. In other words, if an assessee newly enters the export business during a particular year, he will be entitled to the concession at the rate of 1 per cent. for that year and shall not be entitled for additional 5 per cent. on account of incremental turnover. In sub-section (3), no deduction of 5 per cent. on account of incremental export turnover shall be allowed, unless the assessee had expor ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
