Law:

Section:

Section 80HHC of the Income-tax Act, 1961 - Deductions - Exporters - Assessment year 2002-03 - Assessee-company exported goods to a company situated in Jordan, namely, GSSMC - It also exported goods to other non-Jordanian companies - Assessee claimed deduction under section 80HHC in respect of said exports - Assessing Officer came to conclusion that sales to GSSMC, Jordan were part of a contract between assessee and said company and, therefore, did not constitute part of assessee's trading activity - As regards sales made to non-Jordanian companies, Assessing Officer was of view that those sales were ultimately for benefit of Jordanian company, though they were routed through non-Jordanian companies - Thus, Assessing Officer denied benefit of section 80HHC to assessee on both counts - On appeal, Commissioner (Appeals) confirmed findings of Assessing Officer with regard to sales made to Jordanian company, i.e., GSSMC - However, with regard to sales made to non-Jordanian companies, Commissioner (Appeals) came to conclusion that those parties did not have any relationship with GSSMC and spares sold to them had been used by them in furnaces installed in their premises - Consequently, Commissioner (Appeals) gave benefit of deduction under section 80HHC on exports made to such non-Jordanian companies - On cross appeals, insofar as sales to GSSMC, Jordanian were concerned, Tribunal noted that two contracts had been entered into between assessee and GSSMC, one contract was for installation and commissioning of a furnace and other contract was for erection, commissioning and running of rolling mill - After examining various purchase orders and other evidence on record, Tribunal opined that exports made by assessee to Jordanian company were not in connection with said contracts - Tribunal, therefore, concluded that assessee was entitled to deduction under section 80HHC as twin conditions of exports having been made and sale proceeds having been received in convertible foreign exchange receipts had been satisfied - With regard to sales made to non-Jordanian parties, Tribunal confirmed findings of Commissioner (Appeals) and held that assessee exported goods on basis of…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492