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TMI Blog1971 (11) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... 256(1) of the Income-tax Act, 1961, at the instance of the department. The question referred is in these terms : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is justified in law in directing that export profit rebate has to be allowed to the assessee-firm also in addition to that allowed to the partners? " The year of assessment is 1963-64 and the accounting period is that which ended on March 31, 1963. The export profit rebate is allowable under clause (i) of sub-section (5) of section 2 of the Finance Act, 1963. That clause runs as follows : " (5) In respect of any assessment for the assessment year commencing on the 1st day of April, 1963-- (i) an assessee being an Indian company or any o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rguments before the Tribunal turned on the question whether both the partners as well as the firm are entitled to the deductions under the section. The Tribunal took the view that the registered firm, the assessee, as well as the partners of the firm are entitled to the benefit of section 2(5)(i) of the Finance Act, 1963. They relied on the view expressed by the Gujarat High Court in the decision in Commissioner of Income-tax v. Arun Industries. The question that arose for decision therein was whether the registered firm was entitled to the benefit of section 15C of the Indian Income-tax Act, 1922, when the partners had already been given the benefit of that section in their assessments. The court came to the conclusion that both the firm a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the benefit of the section. The doubt, as we said earlier, has arisen as a result of the benefit having been conferred on the partners of the registered firm. The benefit conferred by the section is the deduction from the tax computed after the determination of the total income. The total income so determined will have to be divided among the partners according to the proportion in which profits are to be shared by the members of the firm. So the share of the partner will include the profits or gains from export. According to the wording of the section, if the income of an assessee included the profits and gains from export, the assessee is entitled to the deduction provided by the section. Counsel on behalf of the revenue suggested that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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