M/S PALIWAL EXPORTS vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, KARNAL

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ITA/611/2010HC Punjab & HaryanaPHHC01093564201010 December 2010Author: MR. JUSTICE AJAY KUMAR MITTAL,MR. JUSTICE ADARSH KUMAR GOEL2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed both appeals filed by the assessee. The Court noted that the assessee's counsel did not dispute that the matter was covered against the assessee by an earlier order of the High Court in ITA No. 405 of 2010 (M/s Paliwal Exports Vs. ACIT, Central Circle, Karnal) decided on 27.8.2010. Therefore, following the precedent set in the earlier case, the present appeals were dismissed. The specific reasoning or interpretation of Section 80HHC from the earlier judgment is not detailed in this order, but the principle applied is that the current appeal is bound by the prior decision on similar issues. No issues were left undecided.

What were the facts?

The assessee, M/s Paliwal Exports, filed Income Tax Appeal No. 611 of 2010 before the High Court of Punjab and Haryana at Chandigarh. The appeal challenges the order dated 13.4.2007 passed by the Income Tax Appellate Tribunal, Delhi Bench (G), Delhi, in ITA No. 2677/DE/2006. The assessment year in question is 2000-01. The appeal was filed by the assessee against the ACIT, Central Circle, Karnal. The operative part of the judgment indicates that the appeals were dismissed based on an earlier decision of the High Court.

What were the issues?

1. Whether, on the facts and circumstances of the case, the interpretation of Section 80HHC with regard to the deduction of 90% of the net interest from the income from business is legally sustainable? (Question of law) 2. Whether, in the facts and circumstances of the case, the Tribunal was legally justified in taking into account 90% of the gross income of interest for the purpose of deduction under Section 80HHC for determining the export profit? (Question of law) Assessee's contentions: The assessee argued that the interpretation of Section 80HHC regarding the deduction of 90% of net interest from business income was not legally sustainable and that the Tribunal was not justified in considering 90% of gross interest income for calculating export profit for the purpose of deduction under Section 80HHC. Revenue's contentions: The judgment does not record any specific contentions made by the revenue. However, it notes that the assessee's counsel did not dispute that the matter was covered against the assessee by an earlier order of the High Court.

Which sections of the Income-tax Act were involved?

Section 80HHC,Section 260-A

AI-generated summary — verify with the full judgment below

Income-tax Appeal No.611

of 2010

-1- **** IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

1.

Income-tax Appeal No.611

of 2010

Date of decision: 10.12.2010 M/s Paliwal Exports, Paliwal Nagar, Panipat ...Appellant Versus ACIT, Central Circle, Karnal

...Respondent

2.

Income-tax Appeal No.612

of 2010

M/s Paliwal Exports, Paliwal Nagar, Panipat ...Appellant Versus ACIT, Central Circle, Karnal

...Respondent CORAM: HON'BLE MR.JUSTICE ADARSH KUMAR GOEL HON'BLE MR.JUSTICE AJAY KUMAR MITTAL Present: Mr. R.P.Sawhney, Senior Advocate with Ms. Amandeep Sibia, Advocate for the appellant. **** ADARSH KUMAR GOEL, J (

Oral)

. This order will dispose of ITA Nos.611 and 612 of 2010. Income Tax Appeal No.611 of 2010 has been preferred under Section 260-A of Income Tax Act, 1961 by the assessee against order dated 13.4.2007 of the Income Tax Appellate Tribunal, Delhi Bench(G), Delhi passed in ITA No.2677/DE/2006 in respect of Income-tax Appeal No.611

of 2010

-2- **** assessment year 2000-01, proposing to raise following substantial questions of law:- “1. Whether on the facts and circumstances of the case, the interpretation of Section 80HHC with regard to deduction of 90% of the net interest from the income from business is legally sustainable?

2.

Whether in the facts and circumstances of the case, the Tribunal was legally justified in taking into account 90% of the gross income of interest for the purpose of deduction under Section 80HHC for determining the export profit?

We have heard learned counsel for the appellant. Learned counsel for the appellant does not dispute that the matter is covered against the assessee by an earlier order of this Court in ITA No.405 of 2010 (M/s Paliwal Exports Vs. ACIT, Central Circle, Karnal) decided on 27.8.2010. Accordingly, both these appeals are dismissed.

(Adarsh Kumar Goel)

Judge December 10,2010 (Ajay Kumar Mittal) Pka

Judge

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