- (1.) This Income Tax Appeal has been preferred by M/s. Maliram Puranmal against the order passed by the Income Tax Appellate Tribunal, in which the following substantial questions of law have been framed: "(i) Whether the Id. ITAT was right in law in disallowing the deduction under section 80 HHC on Counter Sales effected to foreign buyers against the convertible foreign exchange? (ii) Whether the transactions of counter sale on the facts involve Customs Clearance in any Customs Station as defined in section 2(13) of Customs Act, 1962 -
(2.) The facts, given rise to the present appeal, are that the appellant - assessee is a dealer of jewellery and handicrafts from shops/emporium at Jaipur. The assessee sold the goods by counter sale to foreign tourists in the showroom against the convertible foreign exchange in India. The deduction under section 80 HHC of the Income Tax Act, 1961 was not allowed by the Assessing Officer, on the ground that though the goods were sold at the counter of the shop/emporium, for which the sale voucher was signed by the tourists which provided their passport number and declaration to the effect that the goods will not be gifted or sold in India, the exemption cannot be allowed until the proof of clearance of the goods at the Customs Station was produced.
(3.) We have heard learned counsel appearing for the parties.;