Law:

Section:

Section 80HHC of the Income-tax Act 1961 - Deductions - Exporters - Whether raw cotton being produce of cotton plantation is not covered by clause (b)(i) of section 80HHC(2) and, therefore, assessee-exporter of raw cotton was entitled to deduction under section 80HHC - Held, yes FACTS The petitioner, an exporter of raw cotton claimed deduction under section 80HHC. The Tribunal allowed the deduction. On instant application under section 256(2), the revenue sought to refer the question as to whether the Tribunal was justified in holding that raw cotton was not an agricultural primary commodity specified in clause (b)( i) of section 80HHC(2), and in consequently holding that the assessee was entitled to deduction under section 80HHC. HELD Raw cotton being a produce of cotton plantation is not covered by clause (b)(i ) of section 80HHC(2). The Tribunal had not gone into the question whether raw cotton should or should not be considered as an agricultural primary commodity because, even if it was so considered, it would still be excluded from clause (b)(i ). In aforesaid circumstances, the question sought to refer did not at all arise from the order of the Tribunal. Note: Decision was in favour of the assessee. G.S. Jetley, P.S. Jetley and K.C. Sidhwa for the Applicant. Dilip Dwarkadas and S.S. Paradkar for the Respondent. JUDGMENT Mrs. Sujata Manohar, J.-This is an application under section 256(2) of the Income-tax Act, 1961, for a direction that the Tribunal should be asked to frame the following question of law and refer it to us. The question is as follows: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that raw cotton is not an agricultural primary commodity specified in clause (b)( i) of section 80HHC(2) of…

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