COMMISSIONER OF INCOME TAX Vs. BRILLIANT EXPORTS

JUDGEMENT

(1.) IN IT Ref. No. 191 of 1991 at the instance of the revenue, the following question has been referred to this Court by the Tribunal, Cochin Bench :

(2.) AT the instance of the revenue, the following questions of law have been referred to this Court in IT Ref. No. 5 of 1992 :

(3.) THE assessee are processors of frozen sea foods. Some of their processed goods are exported directly to the foreign buyers. Part of their turnover is exported by the export houses. With regard to the direct exports by them to the foreign buyers there is no dispute. The question is whether they are entitled to the benefit of S. 80HHC for the relevant year for the exports done through the export houses. It is not disputed that foreign buyers had contracts only with the recognised export houses. In their turn, they have independent agreement with the processors (the assessees). As per the agreement with the assessees and the export houses, the assessees would export against the export orders received by the export houses in the name of the export houses. Letter of credit is opened in the name of the export houses, but it is letter endorsed in favour of the assessees so that it can be credited to the assessees' bank, as insisted by the assessees. The assessees have to complete all formalities with regard to export and to ship the goods under bills of lading and the documents are completed by the assessees 'on account of the export houses'. In the agreement between the assessees and export houses, are termed as exporters and the assessees are termed as processors.