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Judgment
The revenue is aggrieved by an Order dated 30-11-2006 passed by the Income Tax Appellate Tribunal, Delhi Bench ''D'''' (herein after referred to ''Tribunal'') in ITA No. 4692/Delhi/02 relevant for the assessment year 1996-97.
The assessee is an exporter of cosmetic products. The assessee had a made huge exports as a result of which it was entitled to REP licences.
In the previous year relevant to the assessment year 1996-97, the assessee did not make any export but it sold the REP licence that it had in the market. The question that arose was whether the assessee was entitled to the benefit of Section 80HHC of the Income Tax Act, 1961 (hereinafter referred to as (the Act). The other issue that had arisen was whether any income had actually accrued to the assessee on the sale of the REP licence in the assessment year 1995-96 particularly since the assessee was maintaining its accounts on a mercantile basis.
Insofar as the second issue is concerned, both the Commissioner (Appeals) as well as the Tribunal were of the view that the income had accrued on the assessee on the sale of REP licence in the assessment year 1995-96. This is a finding of fact which we do not find to be perverse and in our opinion no substantial question of law arises.
Insofar as the first issue is concerned, there is no doubt that the REP licences were given to the assessee by way of an incentive for the exports made by the assessee. We are of the view that it would not be appropriate to take a narrow view of Section 80HHC of the Act since it is intended to confer a benefit to exporters. There is no dispute about the fact that the REP licences were given to the assessee by way of an incentive and would, in that sense, be relatable to the exports made by the assessee as a part of its business.
In our opinion, no substantial question of law arises.
Dismissed.