2004 (11) TMI 34

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....l is directed against the order dated May 26, 2004, of the Income-tax Appellate Tribunal, Madras "C" Bench, made in I.T.A. No. 1438/Mds of 1997, with reference to the assessment year 1993-94. The brief facts leading to the filing of this appeal are as follows: In the intimation under section 143(1) of the Income-tax Act, 1961 (for brevity "the Act"), the Assessing Officer accepted the assess....

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....g Officer and held that losses should be deducted from the profit available from incentives. Against the said order dated March 20, 1997, the assessee preferred a further appeal before the Tribunal. The Tribunal, by order dated May 26, 2004, finding that the point at issue, viz., the manner of computation of deduction under section 80HHC of the Act, is a debatable issue, held that the Assessing....

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....ion proceedings under section 154 of the Act as the issue is debatable? (ii) Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the loss sustained by the assessee from its export business should be ignored and he should get the benefit of section 80HHC of the Act even though there is no export profits?" It is a settled law that the question of relief ....

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....uty CIT [2004] 266 ITR 521 (SC). The law enunciated from the aforesaid decisions makes it clear that even though losses should be deducted from the profit available for the purpose of computation of relief under section 80HHC of the Act, since the question of relief under section 80HHC of the Act is a debatable issue which does not fall within the purview of prima facie adjustment under section....