COMMISSIONER OF INCOME TAX Vs. DAVANAM JEWELLERS

JUDGEMENT

(1.) These appeals are filed by the revenue by challenging the common order dated 13-12-2004 passed in ITA No. 1068/Bang./2002 (In ITA No. 2569/2005) and ITA Nos. 1066 and 1067/Bang./2002 (In ITA No. 2568/2005), by the Income-tax Appellate Tribunal, Bangalore.

(2.) The facts of the case leading to the filing of these appeals are that the Respondent-Assessee which is engaged in the business of jewellery, readymade garment and granite, has manufactured, processed or traded in India and thereafter, exported the aforesaid products.

(3.) For the assessment year 1993-94, the Assessee filed a return of income on 29-10-1993 declaring a total income of Rs. 5,75,810 and for the assessment year 1994-95, the Assessee filed a return of income on 31-10-1994 declaring the total income of Rs. 7,68,340. Contending that the Assessee had not computed the claim of deduction under Section 80HHC of the Act, the Assessing Officer proceeded to reopen the assessment by issuing notice under Section 148 of the Act and after considering the reply of the Assessee, the Assessing Officer completed the assessment on 3-10-2000 by holding that the deduction claimed under Section 80HHC of the Act was not in accordance with the Explanation (baa). Being aggrieved by the said order, the Assessee filed an appeal before the Commissioner of Income-tax (Appeals), who allowed the appeals by his order dated 24-4-2002. The revenue being aggrieved by the said order, preferred an appeal before the Appellate Tribunal, which confirmed the order of the Appellate Commissioner and rejected the appeals on 13-12-2004. The revenue being aggrieved by the said order has preferred an appeal ITA No. 2568/2005 before this Court.