CIT Vs. SHIVOM HANDICRAFTS EXPORTS

JUDGEMENT

(1.) THE Income Tax Appellate Tribunal, Delhi, at the instance of the depnment has referred the following two questions of law for the assessment year 1979 -80 under section 256(1) of the Income Tax Act, 1961 (hereinafter refer -red to as 'the Act') for opinion to this court : '1. Whether on the facts and in the circumstances of the case, the learned ITAT, was legally justified in allowing the assessee the benefit of weighted deduction under section 35B.

(2.) WHETHER on the facts and in the circumstances of the case, the learned Tribunal was legally justified in holding that the assessee was small scale exporter as defined in the Explanation appealed to sub -section (1A) of section 35B relevant for the assessment year?' 2. It has been found that the assessee did not carry on any manufacturing work in any 'Small Scale Undertaking' or undertakings owned by him. We have held in Orient Arts and Crafts v. CIT [Income Tax Reference No. 34 of 1986] decided today that it is mandatory for an assessee to itself own 'Small Scale Undertaking' to qualify as 'Small Scale Exporter', within the meaning of section 35B(1A) of the Act.