2003 (5) TMI 10 - HC - Income Tax

Benefits of deductions under section 80HHC - 1. Whether, Tribunal was justified in holding that the assessee is entitled to claim deduction under section 80HHC in respect of counter sales effected to foreign tourists in its showroom, in view of Explanation (aa) to section 80HHC? 2. Whether Tribunal was justified in allowing the benefits of deductions under section 80HHC to the assessee in respect of counter sales effected to the foreign tourists in the absence of any proof or evidence that the goods so sold have been cleared at any customs station? Held that the assessee is entitled to the benefit of section 80HHC - no interference is called for in Tribunal s order

Summary

The High Court of Rajasthan upheld the Income-tax Appellate Tribunal's decision allowing deduction under section 80HHC for counter sales to foreign tourists in a showroom. The Tribunal's decision was based on evidence that the goods sold required clearance at customs stations. The court cited previous rulings and dismissed the appeal, affirming the benefit of section 80HHC for the assessee.