COMMISSIONER OF INCOME TAX Vs. SURINDER KUMAR KHANNA

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal has referred the following question of law arising out of its order dated May 29, 1997, for the assessment year 1992-93 :

(2.) THE facts of the ease are that the assessee is in the business of export of granite blocks. It claimed deductions under Section 80HHC on the export income. THE,same was however refused by the Assessing Officer on the ground that the assessee exports merely blocks of granite without getting them cut and polished as is required under the provisions of the Twelfth Schedule to the Income-tax Act, 1961. THE Commissioner of Income-tax (Appeals) upheld the order of the Assessing Officer. During the course of the further appeal filed by the assessee before the Income-tax Appellate Tribunal, the Income-tax Appellate Tribunal noticed that in the accounts of the assessee for the relevant year, expenses to the extent of Rs. 53,001) on cutting and dressing of the granite blocks and of Rs. 46,300 on polishing thereof, had been shown. THE Tribunal thus came to the conclusion that there was no doubt about the fact that the granite blocks actually exported by the assessee were cut and polished to some extent at least. By following its earlier order dated May 19, 1997, in I. T. A. No. 162/Bang of 1996, in the case of God Granites, therefore, the Income-tax Appellate Tribunal held that the assessee is entitled to the deduction under Section 80HHC. THE Tribunal, therefore, reversed the decisions of the lower authorities and directed that the deduction under Section 80HHC be allowed to the asses see on the export of granite blocks, as per the provisions of law.

(3.) THE petition stands disposed of with the above observations.