Rajasthan H.C : Whether, on the facts and in circumstances of the case and having regard to cl. (aa) of Expln. to s. 80HHC of the IT Act, 1961, the Tribunal was right in holding that the sales made to foreign tourists at the assessee’s counter located in India could be treated as export turnover?

High Court Of Rajasthan : Jaipur Bench

CIT vs. Mangalam Arts

Section 256(2)

Asst. Year 1987-88

Dr. AR. Lakshmanan, C.J. & Rajesh Balia, J.

IT Ref. Appln. No. 7 of 1999

12th October, 2001

Counsel Appeared

R.B. Mathur, for the Petitioner : R.K. Gupta, for the Respondent

JUDGMENT

RAJESH BALIA, J. :

Heard learned counsel for the parties.

2. The CIT, Bikaner, has filed this application and requires this Court to direct the Tribunal, Jaipur, Bench, Jaipur to state the case and refer the following question of law arising out of the Tribunal’s order dt. 29th Dec., 1997, in ITA No. 570/Jp/1992, for the asst. yr. 1987-88 : “Whether, on the facts and in circumstances of the case and having regard to cl. (aa) of Expln. to s. 80HHC of the IT Act, 1961, the Tribunal was right in holding that the sales made to foreign tourists at the assessee’s counter located in India could be treated as export turnover?” The Tribunal relying on its earlier order has declined to refer question to this Court. Hence, this application under s. 256(2) of the IT Act, 1961, has been filed by the CIT, Bikaner.

3. Having heard the learned counsel for the parties, we are of the opinion that no question of fact is involved. It pertains to determining and interpreting cl. (aa) of the Expln. to s. 80HHC of the IT Act and as to in what circumstances local sales made to foreign tourists can be considered as an export and to be included in determining the export turnover for the purpose of claiming deduction under s. 80HHC. The interpretation of the statute has always been considered to be a question of law. Once a question of law arises out of the Tribunal’s order and which has not been decided or answered so far by the apex Court, the Tribunal is bound to make reference to this Court. In view of our conclusion, we allow this application and direct the Tribunal to state the case and refer the aforesaid question to this Court for its opinion.

[Citation : 258 ITR 582]

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