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TMI Blog2012 (11) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... 08, the appeal was admitted to consider the following substantial question of law:- "Whether the assessee is entitled to the statutory benefits under section 80 HHC in respect of the exports made during the years 1988-89 and 1989-90, even when the amount representing the incentives is received during the assessment year 1992-93 particularly when he was following the cash/receipt system of accounting for the years 1988-89 and 1989- 90?" 2. Briefly, the facts as narrated in the appeal may be noticed. The assessee firm is engaged in the business of manufacturing and export of hand tools. It is following mercantile system of accounting. During the assessment year 1992-93, the appellant filed its income tax return declaring an Income of Rs. 24 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) excluded the export incentives received by the assessee firm in the financial year relevant to the assessment year 1992-93 from the scope of total income for the said year with a direction that the said amounts were to be assessed in the hands of the assessee firm in the assessment years 1988-89 and 1989- 90 i.e. the period in which the said Export incentives had become receivable. The CIT(A) further deleted the disallowance of Rs. 40,500/- made by the Assessing officer. Aggrieved by the order, the department filed an appeal before the Tribunal. It was held that though the said export incentives had become receivable in the assessment years 1988-89 and 1989-90, but the same were liable to be included in the total income of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be whether in such circumstances the assessee would be entitled to any deduction under Section 80HHC of the Act or not in the current assessment year in respect of cash incentive and IPRS received by the assessee. This question stands answered by the Hon'ble Apex Court in B.Desraj's case (supra) in favour of the assessee. The assessee therein before the Hon'ble Supreme Court was maintaining his accounts under the cash system and had exported textiles/fabrics in the accounting year relevant to assessment year 1990-91 and had received cash compensatory allowance and duty draw back therefor in the next accounting year. Though, the assessee had not done any export business during the assessment year 1991- 92, yet the assessee was held ent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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