COMMISSIONER OF INCOME TAX Vs. ASCALON EXPORTS

JUDGEMENT

(1.) This appeal by the revenue arises out of the impugned order dated 3-5-2005 passed in ITA No. 2176/BNG./2004 by the Income Tax Appellate Tribunal, Bangalore Bench A, for consideration of the following substantial questions of law:

(2.) Whether the Tribunal was correct in not appreciating the fact that once the Assessee sustained loss in export as per Section 80HHC(1) they are not entitled for deduction claimed and therefore entering into computation of deduction as per Section 80HHC(3) of the Act would not arise since it is only consequential and the relief granted by the Tribunal is contrary to the judgment of the Apex Court in IPC Laboratories in , 266 ITR 521 (SC)?

(3.) We have heard learned Counsel appearing for revenue as well as the learned Counsel appearing for the Assessee, for quite sometime.