Relief in respect of export profits. - Income Tax - 388/CBDT

INSTRUCTION NO. 388/CBDT Dated: March 8, 1972 Section(s) Referred: 84 ,88 Statute: Income - Tax Act, 1961 In Board's letter F.No. 15/6/65-IT(AI) dated the 24th March, 1966 addressed to the Commissioner of Income-tax, Bangalore, and copies endorsed to all other Commissioners of Income-tax, it was stated that the relief u/s 84 and 88 of the Income-tax Act, 1961, or relief in respect of export profits can be allowed in the hands of the partners if the registered firm does not claim such relief and that the relief cannot be allowed to both. 2. The Allahabad High Court have, in their judgment dated 24.3.71, held in the case of Commissioner of Income-tax Vs. Bhandar, Kanpur, that rebate u/s 84 and 88 of the Income-tax Act, 1961 should be allowed to a registered firm as well as its partners. The Board decided in their instruction No. 311 F.270/64/71-ITJ dated the 19th July, 1971, that the Allahabad High Court decision cited above should be followed for giving rebate u/s 15B/C of the Income-tax Act, 1922, and the corresponding sections 88/84 of the Income-tax Act, 1961. 3. Since the ratio of the above decision and the Board's above noted Instruction No. 311 dated 19.7.1971 is equally applicable in respect of the export profits rebate admissible under the Finance Acts, the Board desire, in supersession of the Board's afore-mentioned Circular letter dated 24.3.1966, that the decision of the Allahabad High Court cited above should be followed for granting rebate on export profits under the Finance Acts. This may be done in pending assessments and by conceding the issue in appeals/revision petitions against completed assessments.