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Issues:
1. Whether the assessee is entitled to the exemption from the levy of additional income-tax under s. 104(1) by virtue of the provisions of s. 104(3) r/w the Central Government's relevant notifications. 2. Interpretation of the Government's notification under s. 104(3) exempting Indian companies from the operation of s. 104 in certain circumstances. Analysis: 1. The appeals consolidated for convenience involved the cancellation of orders under s. 104 of the IT Act, 1961 by the AAC for the assessment years 1972-73, 1973-74, and 1974-75. The central issue was whether the assessee qualified for exemption under s. 104(3) based on the export subsidy received and the interpretation of the relevant notifications. The ITO had rejected the assessee's claim, leading to appeals and subsequent decisions by the AAC and Commissioner of Appeals. 2. The assessee contended that the Government's notification did not specify any particular assessment year and that the exemption applied to all years meeting the notification's conditions. The assessee argued that the import licences granted were integral to the export scheme, and the profits from them should be considered as earnings from exports. The AAC and Commissioner of Appeals agreed with the assessee's interpretation, citing relevant case laws and the integrated nature of the export scheme. 3. The Revenue, represented by the Departmental Representative, argued that the conditions for exemption were not met, emphasizing that sale proceeds should be from exports received in India. However, the counsel for the assessee highlighted the nature of the barter scheme and the subsidy received, contending that the import licence realizations should be considered as part of the export proceeds. 4. The Tribunal examined the relevant provisions of s. 104(3) and the Government's notification S.O. 3210, dt. 8th Aug., 1969. The Tribunal noted that the notification exempted Indian companies meeting certain criteria, including the receipt of income from export activities. The Tribunal analyzed the Revenue's contentions regarding the timing of export proceeds and the nature of sale proceeds, ultimately agreeing with the assessee's interpretation and upholding the exemption claimed under s. 104(3) for all assessment years in question. 5. Consequently, the Tribunal dismissed the Revenue's appeals, affirming the assessee's entitlement to the exemption under s. 104(3) of the Act based on the interpretation of the relevant notifications and the integrated nature of the export scheme.
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