COMMISSIONER OF INCOME TAX Vs. OSWAL EXPORTS

JUDGEMENT

(1.) THE present appeal relates to the assessment year 1990 -91. The assessee deals in marble goods and is exporting it to countries directly as well as selling the same at the counter of the emporium of the assessee to the foreign tourists in convertible foreign exchange. For the assessment year 1990 -91, the assessee filed his return of income claiming deduction under section 80HHC of the Income -tax Act, 1961 (hereinafter referred to as "the Act"), in respect of the goods sold at the counter in convertible foreign exchange in addition to the claim of deduction under section 80HHC of the Act against sales made directly by exporting it out of India. The Assessing Officer disallowed the assessee's claim of deduction under section 80HHC in respect of the goods sold at the counter in convertible foreign exchange, on the ground that the assessee failed to produce evidence to establish that the goods sold at the counter of the emporium in convertible foreign exchange were in fact customs cleared. The assessee, being aggrieved, filed an appeal which was dismissed. The assessee, thereafter, preferred an appeal before the Tribunal, which was allowed and the order of the assessing authority was set aside and the Tribunal granted deduction under section 80HHC on the sale of goods made at the counter in convertible foreign exchange.

(2.) THE assessing authority, while processing the income also directed that interest would be charged as per the Rules. The Tribunal also reversed this the finding contending that unless there is a specific order under a particular section to levy interest, no interest could be charged. The Tribunal further held that since the particular section under which levy of interest was not mentioned, the levy of interest could not be charged. The Revenue, being aggrieved by the decision of the Tribunal, has filed the present appeal under section 260A of the Act.

(3.) THE learned counsel for the assessee has submitted that two substantial questions of law arises for consideration, namely, that the goods sold at the counter of the emporium were not liable for deduction under section 80HHC of the Act and that interest under sections 234A, 234B and 234C could be charged even though it was not specifically mentioned in the assessment order.