TaxTMI 
TaxTMI 
1991 (5) TMI 111
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....ef to the assessee under clauses (a) and (b) of sub-section (1) of section 80HHC. 3. On a perusal of the assessment record pertaining to A.Y. 1985-86 the CIT noticed that in the immediately preceding asst. year 1984-85, there was actually no ' export tumover ' for the purpose of section 80HHC(1)(b). He was, therefore, of the view that the assessee was not entitled to relief at 5 per cent of incremental export turnover. He further noticed that export turnover of Rs. 30,90,692 for the asst. year under consideration was taken to be the incremental turnover also and relief at 1 per cent as also at 5 per cent under both clauses (a) and (b) was allowed with reference to the said turnover without examining the facts and material available on th....
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....cordingly set aside the assessment order for the limited purpose of computing deduction under section 80HHC with reference to the export turnover of the goods during the previous year as per clause (a) to section 80HHC(1). The relief allowed under clause (b) with reference to the incremental export turnover was withdrawn. 6. Shri C.S. Agarwal, learned counsel for the assessee submitted before me that in the immediately preceding asst. year, the assessee had, in fact exported goods though in that year there was no export turnover for the simple reason that sale proceeds were received in the subsequent year i.e. the asst. year under consideration. It was contended that the requirement of sub-section (3) of section 80HHC was accordingly ful....
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....ly preceding asst. year there was the some export turnover and if in the year under consideration export turnover is an excess of the export turnover of the immediately preceding assessment year. 8. I have considered the rival submissions as also the facts on record. Section 80HHC has been introduced by the Finance Act, 1983 w.e.f. 1-4-1983. It was intended to provide fillip to Indian exporters, (a) to start export in goods outside the country so as to earn foreign exchange and (b) to increase volume of such exports from year to year. The deduction provided is two-fold, namely, (i) of an amount equal to 1 per cent of the eligible turnover during the previous year and (b) of an amount equal to 5 per cent of the amount by which such turnov....
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....under the new scheme all increments in export turnover will be entitled to relief at 5 per cent of the incremental turnover in computing the taxable income (see 140 ITR Statute 29). In the Memorandum explaining the provisions in the Finance Bill, 1983, it was stated that the tax concession will consist of a deduction in computation of taxable income of 5 per cent of the amount by which the export turnover of the accounting year exceeds the export turnover of the immediately preceding assessment year. Keeping in view the object for introduction of section 80HHC, the speech of the Finance Minister as also the Memorandum explaining the provisions contained in the Finance Bill, 1983, I am of the opinion that a proper interpretation of clause (b....