COMMISSIONER OF INCOME TAX Vs. HERO EXPORTS

JUDGEMENT

(1.) THE Revenue has filed the present appeal raising the following substantial question of law arising out of the order passed 2004, for the asst. yr. 1996 -97.

(2.) THE assessee is a partnership firm engaged in the business of purchase and export of goods. The IT return for the the AO found that the assessee, while working out the indirect cost of goods exported, claimed deduction at 10 per cent as indirect expenses on account of expenses incurred for earning export incentives, miscellaneous income and brokerage etc. The claim made by the assessee was disallowed by the AO and assessment under s. 143(3) of the IT Act, 1961 (for

(3.) AGGRIEVED against the order of assessment, the assessee preferred an appeal before the CIT(A), who vide his order expenses relatable to the earning of export incentives and other miscellaneous income was not permissible under any provision of s. 80HHC of the Act as forming part of the indirect cost.