Commissioner Of Income-Tax vs Silver And Arts Palace

The Rajasthan High Court upheld the Income-tax Tribunal's decision, affirming that the assessee's counter sales involved customs clearance, thus qualifying for deductions under Section 80HHC of the Income-tax Act, 1961. The court referenced Explanation (aa) to Section 80HHC(4A), clarifying that transactions not involving customs clearance do not constitute 'export out of India'. The court emphasized the importance of consistency in judicial decisions, particularly following the precedent set in Ram Babu and Sons v. Union of India [1996] 222 ITR 606, which had been upheld by multiple High Courts. Consequently, the Revenue's appeal was dismissed without costs.