High Court of Delhi

Commissioner of Income tax

v.

Fragrance Credits & Securities (P.) Ltd.

MADAN B. LOKUR AND DR. S. MURALIDHAR, JJ.

IT APPEAL NO. 896 OF 2007

September 20, 2007

Section 80HHC of the Income-tax Act, 1961 – Deductions – Exporters – Assessment year 1996-97 - Assessee, an exporter was entitled to REP licences for huge exports – In previous year relevant of assessment year 1996-97 it did not make any export but sold REP licences – Whether since REP licences were given to assessee by way of an export incentive, they would be relatable to export made by assessee as part of its business so as to entitle assessee benefit of section 80HHC – Held, yes – Whether since both Commissioner (Appeals) as well as Tribunal was of view that income had accrued to assessee on sale of REP licence in assessment year 1995-96, it was a finding of fact, which was not perverse, and no substantial question of law arose – Held, yes.