1998 (3) TMI 16 - HC - Income Tax

Summary

The judgment delivered by M. P. Singh, ACTG. C. J., pertains to an application under section 256(2) of the Income-tax Act, 1961. The assessee, a registered firm, claimed a deduction of Rs. 1,02,955 under section 80HHC for profits earned from exports and sales to foreign buyers. The Assessing Officer allowed the deduction, but the Commissioner of Income-tax modified the order under section 263, withdrawing the deduction. The Income-tax Appellate Tribunal allowed the assessee's appeal against this modification. The Revenue's application under section 256(1) to refer a question of law was rejected by the Tribunal, which based its decision on the Supreme Court case Ben Gorm Nilgiri Plantations Co. v. STO [1964] 15 STC 753 and the stay order on clause (aa) of section 80HHC(4A) by the Rajasthan High Court. The High Court found no illegality in the Tribunal's decision and rejected the reference, stating no question of law was involved.