1985 (4) TMI 117

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....Finance Act, 1978, with effect from1-4-1978. The case of the assessee was that it was a small-scale exporter who maintained a show room for export articles and also made purchases of goods from various karkhanadars who in fact carried on the business as a cottage industry which is a small-scale industry owned by it. However, the ITO did not accept the submission. In appeal, the learned Commissioner (Appeals) upheld the order of the ITO. In doing so, he was influenced by the fact that the assessee did not have manufacturing licence or power connection or machinery. He noticed that in the balance sheet, fixed assets had been shown at Rs. 53,995 only. He took the view that the assessee was getting unfinished goods from artisans and was only ha....

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.... been relied upon. On the other hand, Shri M.K. Chakraborty, the learned departmental representative placed reliance on the orders of the income-tax authorities as also on the decisions of the Supreme Court in CWT v. Bishwanath Chatterjee [1976] 103 ITR 536 and Smt. Tarulata Shyam v. CIT [1977] 108 ITR 345. 9. We have considered the rival submissions as also the decisions, referred to above. Section 35B(1A) as inserted by the Finance Act, 1978, with effect from 1-4-1978, provides that the assessee should be engaged in the business of export of goods and should be either a small-scale exporter or the holder of an export house certificate. The assessee has claimed that it is a small-scale exporter. This expression has been defined in Explana....