COMMISSIONER OF INCOME TAX Vs. TECHNO EXPORTS

JUDGEMENT

(1.) The following question of law was framed in relation to this appeal by the Revenue under Section 260A of the Income Tax Act, 1961 (hereinafter 'the Act').

(2.) Brief facts necessary to decide the case are that in this case the Assessing Officer ('AO') disallowed the assessee's claim for deduction under Section 80HHE of the Act in the course of scrutiny of assessment for Assessment Year (A.Y.) 1996-97. It was argued that the amounts should have been claimed " if at all, when they became due having regard to the export made in the previous years which were realised within a time-frame and for which the limited extension of six months could be granted. It was also urged that the assessee had not claimed this deduction at relevant time when it filed the returns.

(3.) It appears that the assessee had claimed deduction under Section 80HHE of the Act during the course of assessment proceedings and submitted a certificate of the Chartered Accountant in Form-10CCAF " as required by Section 80HHE(4) of the Act. This however was not allowed. The AO did not accept the assessee's contentions with respect to the deduction claimed; the assessee had stated that the receipt of foreign exchange was held up on account of clearances, which ultimately were given by the RBI; only in 1995-96. The foreign exchange received was towards the export made to the trading concerns/corporations in the erstwhile Soviet Union which disintegrated sometime in 1990-91.