IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE THE CHIEF JUSTICE MR.H.L.DATTU & THE HONOURABLE MR. JUSTICE A.K.BASHEER WEDNESDAY, THE 20TH AUGUST 2008 / 29TH SRAVANA 1930 ITA.No. 69 of 2008 --------------------------- (ORDER DATED 30-4-2003 OF THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH IN TA.385/1999) (ASSESSMENT YEAR 1994-1995) .................... APELLANT/APPELLANT: REVENUE: ------------------------------------------------- THE COMMISSIONER OF INCOME TAX, THIRUVANANTHAPURAM. BY STANDING COUNSEL SRI.P.K.R.MENON,SR. STANDING COUNSEL SRI.GEORGE K. GEORGE. RESPONDENT: RESPONDENT: ASSESSEE: ------------------------------------------------------------- M/S POYILAKKADA TRUST, PARAMESWAR NAGAR, KOLLAM. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 20/08/2008,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: H.L.DATTU, C.J. & A.K.BASHEER, J. ----------------------------------------------------- I.T.A.No.69 of 2008 ---------------------------------------------- Dated, this the 20th day of August, 2008 JUDGMENT H.L.Dattu, C.J. This appeal is directed against the orders passed by the Income Tax Appellate Tribunal in I.T.A.No.385 of 1999 for the assessment year 1994-95 filed by the Revenue. 2. The Tribunal, while granting relief to the assessee, had merely followed its earlier decision in I.T.A.No.466/1996 for the assessment year 1993-1994. 3. The Revenue being aggrieved by the orders passed by the Tribunal in the aforesaid appeal, was before this Court in I.T.A.No.44 of 2002. This Court, by order dated 3rd June, 2003 was pleased to reject the Revenu's appeal and was pleased to answer the questions of law framed in favour of the assessee and against the Revenue. 4. The Revenue has framed the following questions of law for our consideration and decision. They are as under: “1. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in directing to recompute the deduction under section 80HHC by ignoring the loss derived from the export of I.T.A.No.69/2008 -2- trading goods? 2. Whether, on the facts and in the circumstances of the case, while computing deduction under section 80HHC the loss derived from the export of trading goods has to be excluded?” 5. Since the Tribunal, while disposing of the appeal for the subsequent year has merely relied upon its earlier order passed in I.T.A.No.466 of 1996 which order has been confirmed by a Bench of this Court in I.T.A.No.44 of 2002, the questions of law framed by the Revenue requires to be answered against the Revenue and in favour of the assessee. 6. However, learned counsel for the Revenue would bring to our notice that there is a subsequent decision of the Apex Court which would come to the Revenue's aid. If that is so, we reserve liberty to the Revenue to make appropriate application before the Tribunal for appropriate orders in view of the subsequent decision rendered by the Apex Court, if law permits. Ordered accordingly. (H.L.DATTU) CHIEF JUSTICE (A.K.BASHEER) JUDGE MS