2001 (10) TMI 22 - HC - Income Tax

Whether, on the facts and in the circumstances of the case and having regard to clause (aa) of Explanation to section 80HHC of the Income-tax Act, 1961, the Appellate Tribunal was right in holding that the sales made to foreign tourists at the assessee s counter located in India could be treated as export turnover? - we are of the opinion that no question of fact is involved. It pertains to determining and interpreting clause (aa) of the Explanation to section 80HHC of the Income-tax Act, 1961, and as to in what circumstances local sales made to foreign tourists can be considered as an export and to be included in determining the export turnover for the purpose of claiming deduction under section 80HHC. The interpretation of the statute has always been considered to be a question of law. Once a question of law arises out of the Tribunal s order and which has not been decided or answered so far by the apex court, the Tribunal is bound to make a reference to this court.

Summary

The High Court of Rajasthan directed the Income-tax Appellate Tribunal to refer a question regarding the interpretation of clause (aa) of Explanation to section 80HHC of the Income-tax Act, 1961. The question was whether sales made to foreign tourists in India could be treated as export turnover for claiming deduction under section 80HHC. The Tribunal was instructed to make the reference as the matter involved a question of law.