C.I.T. Vs. DUNCAN INDUSTRIES LTD.

JUDGEMENT

(1.) THE subject matter of challenge in this appeal is a judgement and order dated 23rd June, 2004 passed by the learned Income Tax Appellate Tribunal pertaining to the assessment year 1990 -91. Although the judgement related to the assessment year 1991 -92 as well but the appeal is restricted to the assessment year 1990 -91. The question formulated at the time of admission of the appeal reads as follows: - -

(2.) NO one appeared for the appellant. Mr. Khaitan, learned Senior Advocate has very fairly assisted us in haring out the matter. The question for consideration indicated above naturally depends upon construction of the following two clauses of sub -section (3) of section 80HHC.

(3.) IT is not in dispute that the assessee being an Indian company in this case, carried on business which did not consist exclusively of export out of India of the goods or merchandise to which this section applies. Therefore, clause (a) had no manner of application. The benefit under Section 80HHC has to be, in that case, worked out in accordance with clause (b). The learned Tribunal has taken a contrary view on the basis of the views expressed by the Madras Bench of the Tribunal wherein the following opinion was expressed: - -