COMMISSIONER OF INCOME TAX Vs. HJS STONES LTD

JUDGEMENT

(1.) THIS appeal is filed by the Revenue by challenging the order dated 01-06-2005 passed in ITA No.48/Bang/1999 by the Income Tax Appellate Tribunal, Bangalore by raising the following substantial questions of law:

(2.) THE facts leading to filing of this appeal are that the Assessee, which is a company, carrying on business of export of granite, for the assessment year 1995-96 filed its return of income along with the requisite certificate and claimed deduction under Section 80 HHC of the Income Tax Act, 1961 (in short 'the Act'). THE same was taken up for scrutiny by the Assessing Officer and according to him, the export turnover of Rs.79,71,201/- claimed by the Assessee was not correct and that the FOB value of the Assessee had to be taken into consideration and accordingly computed export value at Rs.70,25,959/-.'THEreafter, he deducted all the direct and indirect costs from the said amount including freight and insurance charges. Accordingly, the Assessing Officer held that the direct and indirect costs amounting to Rs.64,83,859/- and relief under Section 80 HHC of the Act was worked out to Rs.5,42,100/- and the said assessment was confirmed by the order dated 26-02-1998.

(3.) WE have heard the learned counsel for appellants and learned counsel for respondent-Assessee.