PALIWAL EXPORTS Vs. ACIT

JUDGEMENT

(1.) The assessee has preferred this appeal under Section 260A of the Income Tax Act, 1961 (in short "the Act") against the order dated 3.4.2007 passed by the Income Tax Appellate Tribunal, Delhi Bench, New Delhi (hereinafter referred to as "the Tribunal") in ITA No. 3478/Del/2005 for the assessment year 1999-2000, proposing to raise following substantial questions of law:

(2.) The assessee is engaged in the business of export of handloom products While claiming deduction under Section 80HHC of the Act, the assessee included the benefit of netting of interest which was not allowed by the Assessing Officer. Though the CIT (A) upheld the plea of the assessee, the Tribunal following the judgment of this Court in Rani Paliwal v. CIT, 2004 268 ITR 220 held that the benefit of netting interest was not permissible as the said benefit was not related to export income.

(3.) We have heard Learned Counsel for the appellant.