COMMISSIONER OF INCOME TAX MEERUT Vs. SHADRA EXPORTS

JUDGEMENT

(1.) The present appeal is filed by the Department against the order dated 27.03.2002 passed by the Income Tax Appellate Tribunal in ITA No. 1054/Del/2001 for the assessment year 1998-99.

(2.) On 05.07.2007, a Coordinate Bench has admitted the appeal on the following substantial question of law :

(3.) The brief facts of the case are that during the assessment year under consideration, the assessee was a 100% export unit, exporting the carpets. The assessee's firm has claimed the deduction under Section 80HHC on the amount of duty drawback received by the assessee directly from the Government on the goods sent to foreign buyer in respect of orders procured by another export house M/s Ikae Trading India Limited, New Delhi, but the same was not allowed by the A.O. as well as by the CIT(A). However, the Tribunal has allowed the claim of the assessee. Being aggrieved, the Department has filed the present appeal.