RAKESH KUMAR GARG, J. - (1.) THE assessee, who is a supporting manufacturer is deriving income from the manufacturing and sale of textile goods to M/s IKEA Trading (India) Ltd. (Export House/Trading House). In the return of income, the assessee is claiming deduction under s. 80HHC of the IT Act, 1961 (hereinafter referred to as the "Act") claiming itself at par with the direct exporter on the basis of a judgment of the Tribunal, Delhi Bench -I, Delhi, in Eastern Leather Products (P) Ltd. vs. Dy. CIT (1999) 65 TTJ (Del) 603 : (1999) 68 ITD 358 (Del). However, the AO did not accept the contention of the assessee and disallowed the deductions under s. 80HHC of the Act to the assessee.
(2.) ON appeal of the assessee, the CIT(A) held that the assessee was entitled to the deductions under s. 80HHC of the Act as a supporting manufacturer in the same manner as in the case of a direct exporter.
(3.) FEELING aggrieved by the aforementioned order of the CIT(A), the Revenue filed an appeal before the Tribunal, where claim of the assessee for deduction under s. 80HHC on incentives received by the assessee as a supporting manufacturer was upheld in favour of the assessee. However, on other issues (which are not relevant for the purpose of decision of this appeal), the appeal of the Revenue was partly allowed. Feeling aggrieved against the aforesaid orders of the Tribunal, the Revenue has filed the present appeal under s. 3964/Del/2005 for the asst. yr. 2003 -04 raising the following substantial question of law : "Whether on the facts and in the circumstances of the case, the learned Tribunal was right in law in upholding the order of the CIT(A), directing the AO to allow deduction under s. 80HHC to the assessee who is a supporting manufacturer in the same manner, as in the case of direct exporter, treating the supporting manufacturer at par with direct exporter and ignoring the provisions of s. 80HHC(1A) r/w s. 80HHC(3A) r/w cl. (baa) of Explanation to s. 80HHC of the Act.";