COMMISSIONER OF INCOME TAX Vs. J C BHATIA

JUDGEMENT

(1.) The Tribunal, Delhi, has referred the following question of law for the asst. yr. 1979-80 under Section 256(1) of the IT Act, 1961 (hereinafter referred to as the Act), for opinion to this Court : "Whether, on the facts and in the circumstances of the case, the assessee could be termed as an industrial undertaking entitled for the deduction under Section 35B of the IT Act, 1961 ?"

(2.) The facts giving rise to the present case are as follows : The assessee-respondent is an exporter and he exported articles made of brass and claimed relief under Section 35B(1A) of the IT Act, 1961. He claimed himself a small-scale exporter. The ITO refused to accept the aforesaid claim of the assessee-respondent on the findings that the goods exported by the assessee were not produced in the small-scale undertaking owned by the assessee. The AAC on appeal reversed the findings and held that the goods exported by the assessee were manufactured or produced by the assessee in small-scale undertaking owned by the assessee. The said order has been confirmed in further appeal by the Tribunal.

(3.) Heard Shri Shambhu Chopra, the learned Counsel for the Department, and Shri R.S. Agrawal, the learned Counsel for the assessee-respondent.