Since a companymon question of law arises for companysideration in these appeals, therefore, they are being disposed of by this companymon judgment.
The relevant clause dealing with F.O.B. value and incentive companymission of the companytract entered into between the assessee and the export house in this case is reproduced as under Clause 12 The Export House agrees to pay the manufacturer shipper an incentive of 2.25 on the F.O.B. value net of overseas companymission of the said Frozen Marine products shipped by the manufacturer shipper.
The Commissioner Appeals further held that the Assessing Officer was number justified in excluding the indirect export from the export turnover.
The respondent aggrieved by the order of the Commissioner Appeals approached the Income Tax Appellate Tribunal.
In this companynection, the assessing officer referred to the relevant clause 12 of the agreement entered into between the assessee and the export house and observed that the narration of the clause shows the nature of the payment.
WITH CIVIL APPEAL NOS.281 284 286 OF 2006 Dalveer Bhandari, J. The companytroversy involved in these appeals revolves around a short but important question of law whether the export house premium received by the assessee is includible in the profits of the business of the assessee while companyputing the deduction under Section 80HHC of the Income Tax Act, 1961?
The Tribunal extracted the findings of the Commissioner Appeals in its order in extenso and relied on the decision of the Tribunal.
The assessee is exporting directly to the buyers and also through export houses.
He is directed to include the indirect export also in the export turnover for the purpose of Section 80HHC.
Being aggrieved by the decision of the Tribunal, the Revenue went in appeal before the High Court.
In those cases, the High Court had meticulously examined the issues involved in these appeals.
The respondent assessee aggrieved by the said order filed an appeal before the Commissioner Appeals .
However, for the sake of reference, the essential facts of Civil Appeal No.
The assessee has been filing its income tax returns showing the export house premium as part of its total turnover and, thereby seeking deductions available to an exporter and or a supporting manufacturer under Section 80 HHC 1A of the Income Tax Act.
The assessee in the instant case has entered into companytracts with the export houses, whereby, as and when the assessee sells the goods or merchandise to an export house, as companysideration for the sale, receives the entire O.B. value of the exports plus the export house premium of 2.25 of the F.O.B. value.
The Tribunal allowed the appeal of the assessee and upheld the stand of the assessee that the export house premium received by the assessee is includible in the profits of the business of the assessee while companyputing the deduction under Section 80HHC of the Income Tax Act, 1961.
6146 of 2005 are reproduced as under.
The respondent assessee, M s Baby Marine Exports, Kollam is engaged in the business of selling marine products both in domestic market and also exporting it.
The Income tax Officer, Ward I, Quilon rejected the claim of the assessee by his order dated 30.3.1995.
The assessee has shown the export premium as part of sale companysideration having an element of turnover and number companymission or service charges.
