1975 (7) TMI 53

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....come-tax Appellate Tribunal, Allahabad Bench, Allahabad, has referred the following question for our answer : " Whether, on the facts and in the circumstances of the case, the assessee-company was entitled to rebate under section 2(5)(a)(i) of the Finance Act, 1965, in respect of its indirect exports, made through third parties and on incentives on such exports for the assessment year 1965-66, ....

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....he assessee before the Commissioner of Income-tax and the Tribunal failed. The question referred turns on the interpretation to be given to section 2(5)(a)(iii) of the Finance Act which may, for the sake of convenience, be extracted : Section 2 (5)(a)(iii) : " Where an assessee of the type referred to in sub-clause (i) engaged in the manufacture of any articles in an industry specified in....

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.... exported. It appears that the assessee used to prepare its invoice and demand draft and send the same to its bankers along with AR-4 form and packing list, etc., for arranging payments. The exporters used to take the delivery of the goods only after making payments. In the contract between the assessee and the exporters, there is a condition attached to the sale that the exporter would export the....

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....s of section 2(5)(a)(iii) are satisfied in the assessee's case. Counsel, however, tried to urge that the case of the assessee fell within section 2(5)(a)(i), as the assessee derived profits and gains from the export of these articles even though that might have been channelled through a third party. This argument does not appeal to us. It may be that the assessee is one of the " types " referre....