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TMI Blog2000 (12) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment year 1996-97 declaring its total income of Rs. 1,51,000 while claiming deductions under section 80HHC of the Act at Rs. 80,12,786. Its return was selected for scrutiny under section 143(3) of the Act and during the assessment, the Assessing Officer found that its sales included counter sales of Rs. 9,76,40,672 on which the assessee had claimed deduction under section 80HHC of the Act which was disallowed by the Assessing Officer, who assessed the total income at Rs. 82,74,190 as per Explanation (aa) to section 80HHC of the Act vide an order dated August 11, 1997 (annexure 1), against which the assessee preferred appeal before the Commissioner of Income-tax (Appeals), who by his judgment dated January 18, 1998 (annexure 2), has confir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Division Bench of the Allahabad High Court, and (2) Anil Exports Jaipur v. ITO (I. T. A. No. 1811JP of 1992, dated July 30, 1998, decided by the Income-tax Appellate Tribunal Bench at Jaipur). In Ram Babu and Sons v. Union of India [1996] 222 ITR 606, the Allahabad High Court held that what Explanation (aa) of the Act means is that it will not be an export out of India if two conditions are satisfied : (i) it should be a transaction by way of sale otherwise in a shop, emporium or an establishment situate in India ; (ii) it should not involve clearance in the customs as defined in the Customs Act. Thus, according to the Allahabad High Court, both these conditions must be satisfied if the transaction is to be held to be not an expor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 263 of the Act, modified the assessment order by withdrawing deduction claimed under section 80HHC, against which the assessee went in appeal and the same was allowed by the Income-tax Appellate Tribunal and against that judgment, the Revenue made an application to refer the question as to whether the Tribunal was justified in cancelling the order of the Commissioner of Income-tax, Jaipur under section 263 notwithstanding the fact that the Assessing Officer in the assessment made under section 143(3) allowed deduction under section 80HHC on sales made in foreign exchange to foreigners at the business counter of the assessee in India. The reference application was also dismissed by the Income-tax Appellate Tribunal. This court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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