LIBERTY FOOTWEAR CO. Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) ASSESSEE has filed this appeal under s. 260A of the IT Act, 1961 (for short 'the Act') against the order of the ITAT, Delhi

(2.) ASSESSEE is a partnership concern engaged in the manufacture of footwear/ shoe uppers which are mostly exported abroad and these exports entitled it to deduction under s. 80HHC. While completing the assessment for asst. yr. 1992 - 93, the AO excluded machinery, hire charges and building rent from the business income of the assessee and consequently reduced the claim for deduction under s. 80HHC of the Act.

(3.) ASSESSEE preferred an appeal before the CIT(A) who, by following the orders of his predecessors in the earlier years, held that the AO was not justified in excluding the receipts of hire charges, machinery, plant and building rent from the purview of business income and thereby reducing the claim for deduction under s. 80HHC of the Act.