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TMI Blog2013 (10) TMI 1228X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Whether on the facts and in the circumstances of the case, the Income Tax Tribunal is right in holding that demurrage and dead freight are to be allowed while calculating the relief under Sec.80 HHC for the assessment year 1996-97? 2. Whether on the facts and in the circumstances of the case, the Income Tax Tribunal is right in law in not considering the explanation 'b' under Sec.80HHC wherein export turnover does not include freight or insurance attributable to the transport of goods or mercantile beyond the customs station?". 2. The assessee is a trading concern exporting Molasses, granites, diamond and leather. It exported molasses worth Rs.6,14,87,164/-. As per the terms and conditions of the sale of molasses to M/s.United Molasses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er this sum were actually of such nature to be borne by the assessee. 4. Aggrieved by this, the Revenue is on appeal before this Court and the learned Standing Counsel appearing for the Revenue brought to our attention the definition to "Export Turnover" appearing in Explanation (b) to Section 80HHC of the Income Tax Act, 1961 which reads as follows: "Export turnover" means the sale proceeds, [received in, or brought into, India] by the assessee in convertible foreign exchange [in accordance with clause (a) of sub-section (2)] of any goods or merchandise to which this section applies and which are exported out of India, but does not include freight or insurance attributable to the transport of the goods or merchandise beyond the customs s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r for Oil and Natural Gas Commission which has insured all their off-shore oil and gas exploration and production operations with an Indian Insurance company. The assessee therein applied to the Reserve Bank of India for permission as regards the payment of total re-insurance premium payable to the foreign parties; after deducting the brokerage due to the assessee for technical services rendered, the balance was remitted to the London brokers, who were the brokers for placing all re-insurance business. The assessee sought for approval of the Central Board of Directed Taxes in terms of Section 80-O of the Income Tax Act, 1961 on the ground that the reinsurance brokerage retained in India under agreement with the London Brokers amounted to re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exported molasses worth Rs.6,14,87,164/-. The Revenue also does not dispute the fact that there was an agreement between the assessee and the foreign buyer as regards the liability of either of the party on demurrage, as per which, the demurrage and dead freight was payable by the assessee on account of its delay in boarding of Molasses and consequently, the charges payable thereon were to be paid by the assessee. Accordingly, the foreign company deducted the amount towards demurrage and dead freight and remitted the balance amount to the assessee. This does not mean that the sale consideration was anything less than Rs.6,14,87,164/- for the purpose of claiming deduction under 80 HHC of the Act. There is nothing on material to show that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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