- (1.) The appeal is directed against the Judgement of the Jaipur Bench of the Rajasthan High Court dismissing the appeal under Section 260-A of the Income Tax Act (for short "the Act") carried by the Revenue against the order of the Income Tax Tribunal dismissing its appeal.
(2.) Section 80-HHC of the Act permits certain deductions to be made from the profits earned out of the business of export of goods. There is, however, Explanation (aa) added thereto, which reads as under: "(aa) 'export out of India' shall not include any transaction by way of sale or otherwise, in a shop, emporium or any other establishment situate in India, not involving clearance at any customs station as defined in the Customs Act, 1962 (52 of 1962);"
(3.) This Explanation explains what is "export out of India". Any transaction by way of sale or otherwise in a shop or emporium which does not involve clearance at a customs station as defined in the Customs Act, 1962 is thereby excluded from the expression "export out of India".;