2015 (3) TMI 842

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.... deductions u/s.80 HHC to the assessee on the counter sales to foreign tourists when the assessee has failed to prove that the goods have undergone custom clearance and whether such deduction can be allowed u/s.80HHC in the light of explanation (aa) added with regard to counter sales with retrospective effect?" 2. The facts, given rise to the present appeals, 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 section 80HHC of the Income Tax Act, 1961 was not allowed by the Assessing Officer, on the ground that though the goods were sold a....

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....llant 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 explanation (aa) of sub-section (4C) of section 80 HHC of the Income Tax Act reads as follows: "(aa) "export out of India" shall not in....