LAXMI INDUSTRIES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) HEARD learned counsel for the parties : The Income-tax Appellate Tribunal at the instance of the assessee has referred the following question of law said to be arising out of its order passed in I. T. A. No. 865/JP of 1985, for the assessment year 1984-85 :

(2.) THE assessee which is a firm was making supplies to ONGC and Oil India Ltd. on the basis of global tender that was floated by them. THE Ministry of Commerce vide its circular dated September 5, 1983, in order to give a boost to domestic industries and also to effect import substitution provided that domestic companies which on the basis of global tender supplied goods to ONGC and Oil India Ltd. would be entitled to all benefits which are being provided to exporters. Such supplies would be deemed exports and all benefits such as cash subsidy, import replacement would also be made available to such domestic companies. On the basis of this, the assessee made supplies to ONGC and Oil India Ltd. and claimed relief under Section 80HHC of the Income-tax Act. THE plea of the assessee was rejected by the Income-tax Officer on the ground that the assessee had not exported any goods outside India.