1998 (7) TMI 51 - HC - Income Tax

Summary

Issues:
1. Interpretation of section 80HHC of the Income-tax Act, 1961 regarding benefits for export of goods.
2. Entitlement of a processor who exports goods through export houses to the benefit under section 80HHC without producing a disclaimer certificate.
3. Application of previous judgments on similar cases to determine entitlement to benefits under section 80HHC.

Analysis:
1. The judgment pertains to income-tax reference cases for the assessment years 1985-86 and 1986-87, involving the interpretation of section 80HHC of the Income-tax Act, 1961. The Tribunal sought reference of questions regarding the entitlement to benefits under this section for exports made through export houses.

2. The main issue was whether a processor, who exported goods through export houses, is entitled to the benefit under section 80HHC without producing a disclaimer certificate. The court considered the absence of an export contract between the processor and the foreign buyer, as the contract was between the export houses and the foreign buyer. The court noted that the benefit of section 80HHC was historically given to real exporters and supporting manufacturers/processors under specific conditions.

3. Referring to a previous case, the court held that the assessee, not being the real exporter, was not entitled to the benefit of section 80HHC. The court cited a judgment where it was established that the real exporters were the export houses, leading to the decision against the assessee and in favor of the Revenue. The court applied the same reasoning to the current case, ruling against the assessee based on the established legal principles.

This detailed analysis of the judgment highlights the key issues of interpretation of section 80HHC, entitlement of processors exporting through export houses, and the application of previous judgments to determine eligibility for benefits under the Income-tax Act, 1961.