2015 (4) TMI 337

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....wing the deduction u/s 80HHC to the assessee on counter sales made to foreign tourists, ignoring the specific provisions of Explanation (aa) to Section 80HHC of the Act, when the assessee has failed to prove that the goods have under gone custom clearance?" 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 section 80HHC of the Income Tax Act, 1961 was not allowed by the Assessing Officer, on the ground that though the goods were sold at the counter of the shop/emporium, for which the sale vo....

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....he 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 include any transaction by way of sale or otherwise, in a shop, ....