SATISH CHANDRA, J. - (1.) ALL the appeals have been filed by the assessee against the consolidated order dated 1.12.2001, passed by the Income Tax Appellate Tribunal, Lucknow in I.T.A. Nos.169, 170, 171, 264 and 172/Alld/2000 for the Assessment Years 1989 -90, 1990 -91, 1991 -92, 1992 -93 and 1993 -94.
(2.) ON 15.11.2011, a coordinate Bench has admitted the Appeals on the following substantial questions of law: - "Whether on the facts and circumstances of the case, particularly that the assessee's unit was a 100% Export Oriented Unit (EOU), recovery of cost of material by way of sale of scrap generated in its manufacturing process, could be treated as local sale on which relief under Section 80 HHC was not admissible."
(3.) IN respect of Income Tax Appeal No.88 of 2002, one more question of law was admitted, which is as under: - "Whether on the facts and circumstances of the case, particularly that a period of 4 years had passed, after the regular assessment had been made in the instant case under Section 143(3) of the Act, (after full examination of all related facts as had been fully and truly disclosed by the assessee), notice under Section 147 could have been validly issued without having any regard to the proviso thereto." The brief facts of the case are that during the assessment year under consideration, assessee's firm was engaged in the business of manufacture of 'shoe uppers' for export. The assessee's firm was 100% export unit, it has maintained the books of account after the Audit under Section 44 AB of the Income Tax Act, and after claiming the deduction under Section 80 HHC. The assessee firm was filing return for Nil income during the assessment year under consideration, but the A.O. opined that the waste material which was sold by the assessee in the form of scrap in the local market, is part of profit and he made addition of this amount. So, he has disallowed the profit derived from the export business, details of which are as under: - JUDGEMENT_55_LAWS(ALL)3_2015.htm ;