JUDGMENT

S.B. Sinha, J. — The Appellant carries on business of export of its own products as also procuring export contracts for other exporters on commission. In the assessment year 1990-1991, he derived an income of Rs. 56,69,321/- by way of commission, whereas as an exporter of goods incurred a loss of Rs. 6,372/-. The value of the total exported goods outside India by the Appellant during the said assessment year was Rs. 3,67,600/-. He claimed a deduction in respect of aforementioned income in terms of Section 80HHC of the Income Tax Act, 1961 (for short “the Act”). Exemption claimed under the aforementioned provision was disallowed by the Assessing Officer on the premise that they having incurred loss in respect of export business were not entitled thereto. An appeal preferred thereagainst was rejected by the Commissioner of Income Tax (Appeal). The Income Tax Appellate Tribunal, however, on further appeal preferred by the Appellant opined that the commission received by the Appellant from the other exporters is to be taken into consideration for the said purpose.

2. The Respondent aggrieved by and dissatisfied with the said decision filed an application for reference to the Hig