2008 (5) TMI 199

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....ncome-tax Appeals; seven, filed by the Revenue, namely, I. T. A. Nos. 544, 603, 604, 619, 620, 621 and 622 of 2007, and three filed by the assessees, namely, I. T.A. Nos. 576 and 628 of 2007 and 21 of 2008, as they involved a common question of law which, in essence, is whether a supporting manufacture can claim deduction under section 80HHC of the Income-tax Act at par with a direct exporter. 2. The assessees, who are supporting manufacturers, are receiving export incentives as duty draw back and claimed deduction of this amount, under section 80HHC of the Income-tax Act, 1961 (for short hereinafter referred to as "the Act"). The assessees are deriving income from manufacturing and sale of textile goods as supporting manufacturers. In t....

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....nging the order of the Tribunal, granting benefit to the assessees, under section 80HHC of the Act, by raising the following question of law: "Whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal was right in law in upholding the order of the Commissioner of Income-tax (Appeals) directing the Assessing Officer to allow deduction under section 80HHC to the assessee who is a supporting manufacturer in the same manner, as in the case of a direct exporter, treating the supporting manufacturer at par with the direct exporter and ignoring the provisions of section 80HHC(1A) read with section 80HHC(3A) read with clause (baa) of Explanation to section 80HHC of the Act." 5. However, in I. T. A N....

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.... 567, relevant page 589? 6. Whether the action of the executive is sustainable in denying the claim of the duty draw back which is having a direct nexus and being germane to the business as per the judgments of Union of India v. Rajindra Dyeing and Printing Mills Ltd. [2005] 180 ELT 433 (SC) and Sun Industries [1988] 35 ELT 241 (SC)? 7. Whether the duty draw back received by the appellant is derived from an industrial undertaking as per the genesis of the word 'derived' in its true sense and spirits? 7. We have heard counsel for the parties and perused the impugned orders. 8. It is relevant to mention at this stage that in the meanwhile, the aforementioned judgment of the Kerala High Court has been affirmed by the hon'ble Suprem....