CIT, LDH. vs. M/S DAVINDER SANDHU IMPEX LTD. LDH.

ITA/158/2007HC Punjab & HaryanaPHHC01072833200717 February 2012Author: MR. JUSTICE M.M. KUMAR,MR. JUSTICE ALOK SINGH2 pages
AI SummaryAllowed

What were the facts?

This High Court appeal concerns an order dated 31.8.2006 passed by the Income Tax Appellate Tribunal (ITAT), Chandigarh Bench. The appellant is the Commissioner of Income-tax (Central), Ludhiana, and the respondent is M/s Davinder Sandhu Impex Ltd. The appeal challenges the ITAT's decision regarding deductions under Sections 80IB and 80HHC of the Income Tax Act. The revenue sought to challenge the ITAT's confirmation of the CIT(A)'s directions to allow deduction under Section 80IB on duty drawback and to not restrict the deduction under Section 80HHC as per Section 80IA(9). The assessee had filed cross-objections.

What did the High Court hold?

The High Court allowed the appeal. On the first issue, regarding deduction under Section 80IB on duty drawback, the Court noted that the Supreme Court in Liberty India Vs. Commissioner of Income-Tax (2009) 317 ITR 218 had decided this issue in favour of the revenue, and the assessee's counsel candidly conceded this. On the second issue, concerning the restriction of deduction under Section 80HHC as per Section 80IA(9), both counsels agreed that the matter was covered in favour of the revenue by a Division Bench judgment of the High Court in Friends Castings (P) Ltd. Vs. Commissioner of Income Tax (2011) 50 DTR Judgments 61. Consequently, both questions of law were answered in favour of the revenue. The assessee's cross-objections were not pressed. The operative direction was to allow the appeal.

What were the issues?

The Tribunal had to decide the following questions of law: 1. Whether the ITAT was correct in confirming the CIT(A)'s order directing the Assessing Officer (AO) to allow deduction under Section 80IB on duty drawback. 2. Whether the ITAT was correct in upholding the CIT(A)'s order directing the AO not to restrict the deduction under Section 80HHC as per the provisions of Section 80IA(9). Assessee's contentions: The assessee's counsel candidly conceded that the first question was covered in favour of the revenue by the Supreme Court's decision in Liberty India Vs. Commissioner of Income-Tax. For the second question, the assessee's counsel agreed that the matter was covered in favour of the revenue by this Court's judgment in Friends Castings (P) Ltd. Vs. Commissioner of Income Tax. The assessee also stated that they did not wish to press the cross-objections filed. Revenue's contentions: The revenue's arguments are implicitly contained within the questions of law framed, challenging the ITAT's confirmation of the CIT(A)'s directions.

Which sections of the Income-tax Act were involved?

Section 80IB,Section 80HHC,Section 80IA(9)

AI-generated summary — verify with the full judgment below

-1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of decision: 17.02.2012 Commissioner of Income-tax (Central), Ludhiana ....Appellant Versus M/s Davinder Sandhu Impex Ltd., Sardar Nagar, Rahon Road, Ludhiana ....Respondents CORAM: HON'BLE MR. JUSTICE M.M. KUMAR HON'BLE MR. JUSTICE ALOK SINGH Present: - Mr. Yogesh Putney, Advocate, for the appellant. Mr. Devinder Goyal, Advocate, for Mr. Pankaj Jain, Advocate, for the respondent. 1.Whether to be referred to the Reporters or not? 2.Whether the judgment should be reported in the Digest? ***** M.M. KUMAR, J. Instant appeal is directed against order dated 31.8.2006 passed by Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh.

2.

In the instant appeal, revenue-appellant has claimed following questions of law: - “(i) Whether on the facts and in the circumstances of the case, the ITAT was correct in confirming the order of the learned CIT(A) in directing the A.O. to allow deduction u/s 80IB on duty drawback?ref (ii) Whether on the facts and in the circumstances of the case, the ITAT was correct in upholding the order of the learned CIT(A) in directing the A.O. not to restric

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 80IB

All 1,068 judgments and leading authorities on Section 80IB →

Recent GST High Court judgments

Search GST case law →