SHEENA INDUSTRIES,PANIPAT vs. ACIT CIRCLE, PANIPAT

ITA 3076/DEL/2008Status: DisposedITAT Delhi26 May 2026AY 2004-20055 pages
AI SummaryRemanded

What were the facts?

The assessee, Sheena Industries, was treated as a supporting manufacturer and claimed deduction under Section 80HHC. The ITAT and High Court initially ruled in favor of the assessee, but the Supreme Court overturned this, stating that supporting manufacturers are not on par with direct exporters for Section 80HHC benefits.

What did the Tribunal hold?

The Supreme Court remanded the matter to the Tribunal, allowing the assessee an opportunity to prove they are direct exporters. The Tribunal, in turn, remanded the case to the Assessing Officer (AO) to examine this specific fact.

What were the issues?

Whether a supporting manufacturer is eligible for deduction under Section 80HHC, and if so, the assessee needs to prove they are a direct exporter.

Which sections of the Income-tax Act were involved?

Section 80HHC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “F” NEW DELHI

Before: SHRI MAHAVIR SINGH & SHRI SANJAY AWASTHI

For Respondent: Ms. Monika Singh, CIT - DR
Hearing: 26.05.2026

PER SANJAY AWASTHI, ACCOUNTANT MEMBER:

1.

Right at the outset, it needs to be mentioned that this is an old appeal where we are facing some difficulty in accessing old records. However, from an earlier order in ITA No.3076/Del/2008 in this very same case, in the first round, an order dated 21.4.2011 is available on record, through which it is noted that there were cross appeals filed by the assessee and the Revenue from the order of CIT(A), Karnal passed on 18.07.2008. Through that order the ITAT had interpreted the case of the assessee in his favour following the decision of the Hon’ble Apex Court in the case of CIT vs. Baby Marine Exports reported in 290 ITR 323. It was held that the assessee, having supplied goods of the valu

The order continues below.

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