COMMISSIONER OF INCOME TAX Vs. GOD GRANITES

JUDGEMENT

(1.) THIS judgment shall dispose of WA 3783/1995 arising from the order passed in WP No. 15449/1995 relating to the assessment year 1992-93, 1TRC No. 440/1998 also related to the assessment year 1992-93, WP No. 18303/1996 relating to the assessment year 1991-92 and WP No. 12270/1996 relating to the assessment year 1993-94, as the central dispute between the parties in these cases is same/similar. Difference of facts leading to multiple and divergent proceedings is being indicated. Due to multiple and divergent proceedings different reliefs have to be given which are also being indicated. Facts in different cases are referred to in the order in which they were argued before us by the counsel for the parties.

(2.) AT the first instance arguments were addressed in the reference petition ITRC No. 440/1998 relating to the assessment year 1992-93 and facts are narrated from that. Since the writ appeal also relates to the same assessment year facts leading to the filing of the writ appeal shall be referred to as well.

(3.) SINCE the intimation date31st March, 1995, regarding the adjustment made under section 143(1)(a) were set aside and the assessing officer was directed to reconsider the return of the assessee, the assessing officer once more referred to the circular of the CBDT dated 17th Nov., 1994, and disallowed the claim of the assessee towards deduction under section 80HHC. The action of the assessing officer was confirmed in the first appeal, Assessee filed further appeal before the Tribunal, Bangalore, which was accepted in view of the subsequent Circular No. 729, date1st Nov., 1995 (published at (1995) 129 CTR (St) 11, (hereinafter referred to as 'the subsequent circular'). Tribunal in its order recorded a finding of fact that the assessee was cutting and polishing the granite blokes to some extent before their export. The finding of the Tribunal is: