2015 (3) TMI 715

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....fied in allowing the deduction of Rs. 3,75,56,461/- u/s 80HHC to the assessee on counter sales inspite of the specific provisions of Explanation (aa) to Section 80 HHC of the Act of 1961? (ii) Whether on the facts and circumstances of the case, the ITAT as well as the CIT(A) was justified in allowing the deduction u/s 80 HHC of the Act of 1961, when there is no finding to the effect that the goods were cleared at any of the custom station?" 2. The facts, given rise to the present appeal, are that the respondent-assessee is a dealer of jewellery and handicrafts from shops/emporium at Jaipur. The assessee sold the goods by counter sale to foreign tourists in the showroom against the convertible foreign exchange in India. The deduction under....

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....x & Ors. [(2005) 272 ITR 81 (All.)] following its earlier judgments. 6. Learned counsel appearing for the Income Tax Department-appellant tried to distinguish the decisions, on the ground of the language used in the Explanation (aa) of sub-section (4C) of section 80HHC of the Income Tax Act, is that unless there is proof of the clearance at any Customs Station, as defined under section 2(13) of the Customs Act, 1962, the exemption was not allowable by the assessing authority. He submits that the burden of proof of clearance at any Customs Station was on the assessee, and that since there no documents were produced recording any clearance at any Customs Station, the exemption was denied under section 80HHC of the Income Tax Act. 7. The exp....