9911796707
TMI Blog2014 (9) TMI 788X X X X Extracts X X X X X X X X Extracts X X X X ..... sel appearing on behalf of the revenue in support of this appeal submits that the assessment order passed in the case of the respondent-assessee dealt with the return of income filed by the assessee declaring total income of Rs. 44,21,26,090/-. The return of income was accompanied by the tax audit report. After the requisite procedure, what the assessing officer concluded is that the assessee firm is engaged in the business of manufacturing and trading / export of diamonds. The assessee disclosed the source of income, computation of gross profits and claimed deduction under section 80HHC of the Income Tax Act, 1961 ('the I.T. Act' for short). 3. The assessing officer arrived at the conclusion that the transactions which have been u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Chotalal reported in 246 ITR 439 was misplaced. 6. On the other hand, Mr.Pardiwalla appearing for the assessee submits that the Tribunal has also analysed the transaction and elaborately considered the factual material. The factual detail is that the assessee is not a dealer in foreign exchange. It is a diamond exporter and exports diamond. There was an incidental transaction in foreign exchange. That was not a regular business of the assessee. The foreign exchange was booked against the standing export orders/import liabilities. All this foreign exchange transactions are done with the permission of the Reserve Bank of India. The contracts were booked in the forward market in order to hedge against the possible losses accruing in view of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (S.C.). 8. As a result of this, Mr.Pardiwalla, then, submits that even the second question is not a substantial question of law and hence the appeal deserves to be dismissed. 9. With the assistance of Mr.Malhotra and Mr.Pardiwalla, we have perused the memo of appeal and all necessary annexures thereto. We have also perused the relevant statutory provisions. In our view, the concurrent findings of the Commissioner and the Tribunal with regard to the nature of the transaction that it not being speculative in character is not perverse or vitiated by an error of law apparent on the face of record. The Division Bench held that once the main business is identified, if some incidental activities or transaction or dealing in foreign exchange is u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting and polishing them and using those diamonds for exports. Some of the exported rough diamonds were not found to be worthy for cutting and polishing. It is in these circumstances that the issue raised before the Commissioner has been considered by him in para 4.1 onwards. He has referred to an order of the Tribunal. He held that the deduction of the value of the export of rough rejected diamonds from the cost of purchase of rough diamonds is held to be correct. Therefore, the alternate plea that apart from reducing the import cost from the total export turnover, it shall also be reduced from the total turnover which exceeds the export income. This is something which the Tribunal upholds and in para 25 it refers to the finding of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
