(-1-) MGN IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.149 of 2008 The Commissioner of Income Tax ...........Appellant Vs. M/s.Veerprabhu Export House........Respondent Mr.A.S. Shivsharan, for the Appellant None for the respondent. CORAM: F.I. CORAM: F.I. CORAM: F.I. REBELLO REBELLO REBELLO & R.S.MOHITE, JJ. R.S.MOHITE, JJ. R.S.MOHITE, JJ. DATED: 20th February,2009 DATED: 20th February,2009 DATED: 20th February,2009 P.C. P.C. P.C. . Admit on the following question:- "(1) Whether on the facts and in the circumstances of the case and in law, the Hon’ble ITAT is right in directing to treat the unrealized sale proceeds of exports as local sales and further directing to reduce the direct and indirect cost of such sales without appreciating the provisions of Sec.80HHC of the IT Act, 1961. 2. Whether on the facts and in the circumstances of the case and in law, the ITAT was correct to include the excess provision of last year’s credit amounting to (-2-) Rs.5,25,512/- and written off in this year, for computing deduction u/s.80HHC, though this is deemed income as per the provisions of Sec.41 of the IT Act and has no nexus with the export activity and export profit of the previous year relevant to A.Y. 1998-99." (R.S.MOHITE, J.) (F.I.REBELLO,J.) (R.S.MOHITE, J.) (F.I.REBELLO,J.) (R.S.MOHITE, J.) (F.I.REBELLO,J.)