9911796707
TMI Blog1993 (3) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... ate the order of the CIT(Appeals) and to restore that of the Assessing Officer. 2. We have heard the learned departmental representatives Shri Gautam Kar and Shri A. K. Khaladkar. We have also heard the learned counsel for the assessee Shri K.A. Sathe. Their arguments are taken into consideration. We have also gone through the relevant papers filed on record by the learned counsel for the assessee, inviting our attention that the contents mentioned therein support the assessee's claim for the allowance of 80HHC deduction. We have also looked into the provisions of (THE) United Nations (Privileges and Immunities) Act, 1947, a xerox copy of which is on record. 3. The only point involved in this appeal for our consideration is whether the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble wherever located. " 5. The fair meaning of the above referred sections would be that the effect is to be given to the convention on the privileges and immunities of the United Nations and its representatives and officers. The office of the United Nations or its sister concern wherever located and by whomsoever held shall be immune from search, requisition, confiscation, expropriation and any other form of interference whether by executive, administrative, judicial or legislative action. That means none of the organs of the Government is entitled to interfere in the office of the United Nations or its sister concern by any modes as mentioned in sections 3 and 4 of Article II relating to property, funds and assets. There cannot be two o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 80HHC, we find certain necessary conditions to claim the deduction in respect of the properties retained for export business. In accordance with the said section, the assessee must be an Indian company or a person must be a resident in India. It should be engaged in the business of export out of India any goods or merchandise. While doing the business of export out of India of any goods or merchandise is made then the provisions of this section applies. In computing the total income of the assessee, the deduction of profits derived by the assessee from the export of such goods or merchandise is allowable. There is a proviso to this section that if the assessee is a holder of an Export House Certificate or a Trading House Certificate issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are also regarding certificate and letters from the Government of India. 9. Shri Sathe's second limb of argument is that because the cash assistance was given to the assessee firm, the excise duty was refunded, the order was placed in US $ Currency, the bill was also prepared in US $ Currency the goods supplied to the office of UNICEF at New Delhi are to be interpreted as goods exported by the assessee to allow deduction under section 80HHC. The fact remains that the assessee received money in Indian Currency equivalent to the US $ on placing the order. The assessee actually did not bring foreign US $ into India. Granting of cash assistance and refund of excise duty does not help to treat the sale of electrical goods made by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, we are unable to hold that the turnover of sales effected with UNICEF at New Delhi does amount export turnover. Therefore, the view taken by the CIT (Appeals) does not appear proper and in consonance with the facts and legal aspects. 13. Shri Sathe has brought to our notice that this point has arisen for the first time in this year only. He has cited the corresponding examples of 80C below Chapter VI-A. While arguing that the liberal construction should be given to the activity of sales of goods effected by the assessee firm, he has relied on three judgments of the Supreme Court in the case of Broach Distt. Co-op. Cotton Sales, Ginning Pressing Society Ltd. v. CIT [1989] 177 ITR 418 and pointed out certain observations from page 422 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o say that the goods sold and supplied by the assessee have left the shore of India. The goods sold and supplied by the assessee are in the office of UNICEF situated at New Delhi and within the territory of India. Even placing the order and issuing the bills in US $ does not mean that there is export of goods or merchandise. The sale to UNICEF at New Delhi cannot be treated as an export turnover. The order was placed in US $ and bills were issued in US $ but the assessee firm actually did not receive the US $ and what was received by it was the equivalent Indian currency. This does not amount that the assessee brought US $ into India. Going one step further by considering the legal provisions of (THE) United Nations (Privileges and Immuniti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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