Whether on the facts and in the circumstances of the case the Tribunal is right in law in holding that companymission and brokerage for procuring export companytracts for other exporters is exempt under section 80HHC of the Act on the ground that the same is export profits?
An appeal preferred thereagainst was rejected by the Commissioner of Income Tax Appeal .
On the said findings, answers to both the questions were rendered in the negative and in favour of the Revenue.
The Income Tax Appellate Tribunal, however, on further appeal preferred by the Appellant opined that the companymissioner received by the Appellant from the other exporters is to be taken into companysideration for the said purpose.
56,69321/ by way of companyission, whereas as an exporter of goods incurred a loss of Rs.
6,372/ ?
6,372/ .
The value of the total exported goods outside India by the Appellant during the said assessment year was Rs.3,67,600/ .
The Respondent aggrieved by and dissatisfied with the said decision field an application for reference to the High Court and by an order dated 13.9.1996 the following questions were referred by the Tribunal Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee is entitled to deduction under Section 80HHC of the Income Tax Act even though the export business resulted in a loss of Rs.
Exemption claimed under the aforementioned provision was disallowed by the Assessing Officer on the premise that they having incurred loss in respect of export business were number entitled thereto.
Referring to the circulars issued by the Central Board of Direct Taxes CBDI , the High Court held that although the said provision was amended with effect from 1.4.1992 by inserting an explanation whereby and whereunder the profit derived out of such companymission brokerage was companyfined to 10 of the income, the same, being clarificatory in nature, would have retropective effect.
He claimed a deduction in respect of aforementioned income in terms of Section 80HHC of the Income Tax Act, 1961 for short the Act .
In the Assessment year 1990 1991, he derived an income of Rs.
B. Sinha, J. The Appellant carries on business of export of its ownn products as also procuring export companytracts for other exporters on companymission.
