KASHMIR ARTS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) 1.1 This appeal under Section 260 A of the Income Tax Act, 1961 ('Act') is directed against the order dated 7th October, 2004 passed by the Income Tax Appellate Tribunal ('Tribunal'), Delhi Bench "G", New Delhi in M.A. No.159/Del/2004 in ITA No.3523/Del/1997. By the said impugned order the Tribunal dismissed the application filed by the Appellant before it under Section 254(2) of the Act seeking rectification of its order dated 30th September, 2003 by which it dismissed the Assessee"s appeal.

(2.) The facts relevant for the present appeal are that for the Assessment Year 1993-94 the Assessee, which is in the business of exporting carpets, filed a return on 12th October, 1993 showing an income of Rs.12,04,030/-. Later on 3rd September, 1995 the Assessee filed a revised return disclosing an income of Rs.12,82,976/-. The case was processed by the Assessing Officer ('AO') under Section 143 (1) (a) of the Act.

(3.) While the assessment proceedings were in progress, the Assessee by its letter dated 19th September, 1995 claimed deduction of Rs.3,62,76,246/- (revised) under Section 80HHC of the Act. In addition, the Appellant furnished an explanation that it had deducted 10% of the receipts amounting to Rs.50,48,648/- from the total indirect cost while calculating the said deduction.