C I T vs. M/S DAVINDER EXPORTS( ALLOWED CASE)

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ITA/371/2007HC Punjab & HaryanaPHHC01073069200721 April 2011Author: MR. JUSTICE AJAY KUMAR MITTAL,MR. JUSTICE ADARSH KUMAR GOEL2 pages
AI SummaryAllowed

What did the High Court hold?

The High Court held that the matter was covered against the assessee by its own order dated April 18, 2011, in Income Tax Appeal No.469 of 2010 (Asin Exim International Vs. Commissioner of Income Tax, Jalandhar, Punjab). In that earlier judgment, the Court had held that if a deduction under Section 80-IA has been taken, then a deduction under Section 80HHC is not admissible in view of Section 80IB(13) read with Section 80-IA(9) of the Act. This decision followed an earlier judgment of the same Court in Friends Castings (P) Ltd. Vs. Commissioner of Income Tax. Consequently, the substantial question of law was answered in favour of the revenue. The operative direction was to allow the appeal.

What were the facts?

The appeal was filed by the Commissioner of Income-tax (Central), Ludhiana (the revenue) against an order dated February 19, 2007, passed by the Income Tax Appellate Tribunal (ITAT), Chandigarh Bench 'B'. The ITAT's order was in relation to ITA No.214/CHD/2005 for the assessment year 2001-02. The dispute concerns the deduction claimed by M/s Davinder Exports (the assessee) under Section 80HHC of the Income Tax Act, 1961. The revenue challenged the ITAT's decision to uphold the Commissioner (Appeals)'s direction to the Assessing Officer (AO) not to restrict the 80HHC deduction based on provisions of Section 80IB(13) read with Section 80IA(9) of the Act.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the ITAT was correct in upholding the order of the CIT(A) in directing the AO not to restrict the deduction under Section 80HHC as per the provisions of Section 80IB(13) read with Section 80IA(9) of the Income Tax Act, 1961? Assessee's contentions: The judgment does not record any specific contentions made by the assessee. The appeal is filed by the revenue. Revenue's contentions: The revenue contended that if a deduction under Section 80-IA has been claimed, then a deduction under Section 80HHC is not admissible in view of Section 80IB(13) read with Section 80-IA(9) of the Act. The revenue relied on the judgment of this Court in Friends Castings (P) Ltd. Vs. Commissioner of Income Tax (2011) 50 DTR Judgments 61.

Which sections of the Income-tax Act were involved?

Section 260A,Section 80HHC,Section 80IB,Section 80IA

AI-generated summary — verify with the full judgment below

Income Tax Appeal No.371

of 2007

-1- *** IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Income Tax Appeal No.371

of 2007

Date of decision: 21.4.2011 Commissioner of Income-tax (Central), Ludhiana

...Appellant Versus M/s Davinder Exports, Guru Nanak Dev Nagar, Rahon Road, Ludhiana ...Respondent CORAM: HON'BLE MR.JUSTICE ADARSH KUMAR GOEL HON'BLE MR.JUSTICE AJAY KUMAR MITTAL Present: Mr. Rajesh Katoch, Senior Standing Counsel for the appellant. Mr. Pankaj Jain, Advocate for the respondent.

**** ADARSH KUMAR GOEL, J (

Oral)

.

1.

This Appeal has been preferred by the assessee under Section 260A of the Income Tax Act, 1961 (for short “the Act”) against order dated 19.2.2007 passed by the Income Tax Appellate Tribunal, Chandigarh Bench 'B',Chandigarh in ITA No.214/CHD/2005, for the assessment year 2001-02, raising following substantial questions of law:- “Whether on the facts and in the circumstances of the case, the ITAT was correct in upholding the order of the ld. CIT(A) in directing the A.O. not to restrict the deduction u/s 80HHC as per provisions of Section 80IB (13) r.w. section 801A(9) of the I.T.Act, 1961?”

2.

Learned counsel for the appellant fairly states that matter is covered against the assessee by order of this Court dated 18.4.2011 in Income Tax Appeal No.371

of 2007

-2- *** under Section 80-IA has been taken, deduction under Section 80HHC was not admissible in view of Section 80IB(13) read with Section 80-IA(9) of Judge

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