COMMISSIONER OF INCOME TAX Vs. KALPANA AGENCIES

JUDGEMENT

(1.) The above tax case (appeals), filed by the Revenue as against the orders of the Income-tax Appellate Tribunal were admitted by this court on the following substantial questions of law:

(2.) On appeal at the instance of the assessee, the Commissioner of Income-tax (Appeals) took the view that it is not in dispute that the assessee did not export feldspar in pulverised or micronised form but the nature of goods exported would fall under the definition as a mineral and it would satisfy the requirement of processed mineral or ore as defined under item (x) of the Twelfth Schedule, namely, cut and polished mineral. He further held that quartz and feldspar are minerals and if one of the conditions of the Twelfth Schedule is satisfied, the benefit of section 80HHC would automatically apply. The reasoning given by the Commissioner of Income-tax (Appeals) reads as follows:

(3.) Being aggrieved by the order of the Commissioner of Income-tax (Appeals), the Revenue pursued the matter before the Income-tax Appellate Tribunal. The Tribunal, by a brief order, relying upon the decision of the Tribunal in the case of Asst. CIT v. G.T.C. Enterprises,2003 87 ITD 188 (Chennai) came to hold that the assessee was covered by item (x) of Schedule XII and was eligible for deduction under section 80HHC of the Income-tax Act.