- (1.) ON a reference under s. 256(2) of the IT Act, 1961, the Tribunal, Jaipur has referred the following question for our opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in treating sales made to foreign visitors at the assessee's counter located in India as export sales for the purpose of allowing deduction under s. 80HHC?"
(2.) AT the outset, learned counsel appearing for the Revenue has fairly admitted that the issue is directly covered by the decision of the apex Court in the case of CIT vs. Silver & Arts Palace (Civil Appeal No. 4478 of 2001, dt. 18th Dec., 2002) wherein their Lordships have taken a view that any sale of an article on counter-shop, emporium or other establishment situated in India against foreign currency and if ultimately that article has been taken out of India, the assessee is entitled to the special deduction under s. 80HHC. Following the view taken by the apex Court, we answer the reference in affirmative in favour of the assessee and against the Revenue. The reference application stands disposed of.;