Satyabrata Sinha, J.

1. INTERPRETATION of section 80HHC of the Income-tax Act, 1961 (hereinafter referred to as "the said Act"), vis-a-vis a circular letter bearing No. 600 (see [1991] 189 ITR (St.) 126), dated 23rd May, 1991, issued by the Central Board of Direct Taxes is in question in this writ application.

2. THE facts shortly stated are as follows :

THE petitioner being a company incorporated and registered under the Companies Act, 1956, admittedly is engaged in growing, manufacturing and selling black tea. It also exports tea out of India.

A question arose as to the stage of grant of deduction required to be given in assessment of computation of income of such an assessee in view of various representations regarding problems faced by tea exporters. By reason of the impugned Circular No. 600 (see [1991] 189 ITR (St.) 126), dated 23rd May, 1991, the Board has laid down the following formula. Abbreviated profit and loss account

3. ACCORDING to the petitioner, the interpretation of the aforesaid provision by the Central Board of Direct Taxes (hereinafter referred to as "the said Board") is not in consonance with the provisions of Section 80HHC read with Rule 8.

4. DR. Pal