2008 (2) TMI 129

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....has been filed against the order of the Income Tax Appellate Tribunal in I.T.A.No.942/Mds/2005 dated 30.11.2006. The relevant assessment year is 2001-02. 2. The assessee is a manufacturer of garments and fancy items and exporter. The assessee filed its return of income on 29.10.2001 for the relevant assessment year 2001-2002 claiming deduction under Section 80HHC of the Income Tax Act (hereinaf....

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....ther appeal before the Income-tax Appellate Tribunal, which confirmed the order of the Commissioner of Appeals and dismissed the appeal preferred by the Department. Aggrieved by that order, the present appeal has been filed by formulating the following substantial questions of law:- "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in....

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....nd there was sufficient materials supported by all the necessary documents to show that the deduction claimed was entirely due to export, there was no warrant for disallowing any portion of the export earnings pro rata by invoking clause (b) of sub-section 3 of Section 80 HHC of the Act. The purpose of the clause was to disallow a part of the allowances under the section only when the entire claim....

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....aintained separate accounts and maintained its trading receipts and profit and loss accounts separately for export sales and domestic sales and produced sufficient material in support of all the necessary documents to show that the deduction claimed was entirely due to export, there is no warrant for disallowing any portion of the export earnings pro rata by invoking clause (b) of sub-section (3) ....