C I T Vs. P NAVINKUMAR AND CO

JUDGEMENT

(1.) At the instance of Revenue the Income Tax Appellate Tribunal, Ahmedabad Bench, Ahmedabad has referred following question of law for the opinion of this court under Section 256 of the Income Tax Act, 1961 ( Sthe Act for short).

(2.) This Court has heard Mr.M.R.Bhatt, learned counsel for the Revenue, at length and in great detail. The endorsement on the Board indicates that though the respondent-assessee Company is duly served, it has neither appeared through its lawyer nor through its constituted agent.

(3.) Section 80HHC deals with deduction in respect of profits retained for export business. Hence necessary formula is set out therein. It may be mentioned that the question of law referred to this Court for opinion relates to assessment year 1994-95 and as observed earlier, the Appellate Tribunal has taken the view that 8% premium on the licences purchased by the assessee from the outside parties for sale or import would be liable to be treated as cash assistance under Section 28(iib) against its export eligible to deduction under Section 80HHC and not income from other sources. However, this Court finds that Fifth proviso was inserted by the Taxation Law (Amendment) Act, 2005 with retrospective effect from April 1, 1992, which reads as under:-