COMMISSIONER OF INCOME TAX Vs. GOEL JEWELLERS

JUDGEMENT

(1.) THESE three appeals under Section 260A of the Income Tax Act, 1961 (Act, for short) relate to the assessment year 1997-98. ITA No. 16/2004 preferred by the Revenue is directed against the order of the Income Tax Appellate Tribunal (tribunal, for short) dated 13th May, 2003. ITA No. 1070/2005 and ITA No. 24/2006 are two cross-appeals by the Revenue and the assessee, respectively against the order of the tribunal dated 29th March, 2005.

(2.) THE facts as noted and recorded by the tribunal in the two orders are required to be first elucidated.

(3.) SUBSEQUENTLY, the assessee filed their return of income on 28th October, 1997 declaring income of Rs. 18,02,100/- . In this return, the assessee had claimed deduction under Section 80HHC of the Act. While computing the said deduction, the assessee had taken the surrendered income of Rs. 75 lacs as business profits. The total business turnover was taken as Rs. 3,24,92,658/- and export turnover was taken as Rs. 2,67,83,345/-. The total profit from business was Rs. 1,02,56,082/- and accordingly deduction under sub-section 3 to Section 80HHC was computed as Rs. 84,53,978/-.