C I T vs. M/S ASIAN EXIM INTERNATIONAL

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ITA/447/2007HC Punjab & HaryanaPHHC01073152200716 May 2012Bench: MR. JUSTICE AJAY KUMAR MITTAL,MR. JUSTICE GURMEET SINGH SANDHAWALIA2 pages
AI SummaryAllowed

What did the High Court hold?

The High Court held that the substantial question of law is answered in favour of the Revenue. The Court noted that the assessee's counsel fairly submitted that the matter is covered against the assessee by the order of this Court dated 21.04.2011 in ITA No.371 of 2007 (Commissioner of Income Tax (Central) Ludhiana Vs. M/s Davinder Exports), which relied on this Court's order dated 18.04.2011 in ITA No.469 of 2010 (Asin Exim International Vs. Commissioner of Income Tax, Jalandhar, Punjab). In the cited case, it was held that while calculating deduction under Section 80HHC, the deduction admissible under Section 80IA (or 80IB as per the question) has to be taken into account, and the deduction under Section 80HHC shall be calculated thereafter. Therefore, the ITAT's order upholding the assessee's contention was set aside. The appeal filed by the Revenue was allowed.

What were the facts?

The Revenue filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated 20.04.2007 passed by the Income Tax Appellate Tribunal (ITAT), Amritsar Bench, for the assessment year 2001-2002. The appeal challenged the ITAT's decision regarding the allowability of deduction under Section 80HHC. The assessee is M/s Asian Exim International, and the Revenue is the Commissioner of Income Tax, Jalandhar-I. The dispute pertains to whether the deduction under Section 80HHC should be allowed without deducting the deduction allowed or allowable under Section 80IB.

What were the issues?

1. Whether, on the facts and in the circumstances of the case and in law, the ITAT was justified in upholding the assessee's contention that the deduction under Section 80HHC should be allowed without deducting therefrom the deduction allowed/allowable under Section 80IB? (Question of law) Assessee's Contention: The assessee contended that the deduction under Section 80HHC should be allowed without deducting the deduction allowed or allowable under Section 80IB. (This contention was presented as upheld by the ITAT in the order under challenge). Revenue's Contention: The Revenue contended that while calculating deduction under Section 80HHC, the deduction admissible under Section 80IA (though the question mentions 80IB, the cited case refers to 80IA) has to be taken into account, and the deduction under Section 80HHC should be calculated thereafter. The Revenue relied on this Court's order dated 18.04.2011 in ITA No.469 of 2010 titled Asin Exim International Vs. Commissioner of Income Tax, Jalandhar, Punjab.

Which sections of the Income-tax Act were involved?

Section 260A,Section 80HHC,Section 80IB

AI-generated summary — verify with the full judgment below

ITA No.447 of 2007 1 IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH ITA No.447 of 2007 Date of decision:16.05.2012 Commissioner of Income Tax, Jalandhar-I, Jalandhar .....Appellant Versus M/s Asian Exim International D-37, Focal Point, Jalandhar .....Respondent

CORAM : HON'BLE MR.JUSTICE AJAY KUMAR MITTAL HON'BLE MR.JUSTICE G.S.SANDHAWALIA Present: Mr.Dinesh Goyal, Advocate, for the Revenue, Mr.Pankaj Jain, Advocate, for Mr.Rishabh Kapoor, Advocate, for the assessee. ****** Ajay Kumar Mittal J. (Oral) 1. Revenue has filed the present appeal under Section 260A of Income Tax Act, 1961 (for short, 'the Act') against the order dated 20.04.2007 (Annexure A-3) passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar in ITA No.590 (ASR)/2004 for the assessment year 2001-2002. 2. The following substantial question of law has been claimed in the present appeal: “Whether, on the facts and in the circumstances of the case and in law, the ITAT was justified in upholding assessee's contention that the deduction under Section 80 HHC should be allowed without deducting therefrom the deduction allowed/allowable under Section 80 IB?” 3. Learned counsel for the assessee fairly submitted that the matter is covered against the assessee by the order of this Court dated 21.04.2011 passed in ITA No.371 of 2007 titled Commissioner of Income Tax (Central) Ludhiana Vs. M/s Davinder Exports, Guru Nanak Dev Nagar,

ITA No.447 of 2007 2 Rahon Road, Ludhiana wherein similar question had been answered in favour of the Revenue and against the assessee relying upon this Court's order dated 18.04.2011 passed in ITA No.469 of 2010 titled Asin Exim International Vs. Commissioner of Income Tax, Jalandhar, Punjab wherein it was held that while calculating deduction under Section 80 HHC, the deduction admissible under Section 80 IA has to be taken into account and deduction under Section 80 HHC shall be calculated thereafter. 4. In view of the above, substantial question of law is answered in favour of the Revenue. Appeal stands allowed accordingly. (Ajay Kumar Mittal) JUDGE 16.05.2012 (G.S.Sandhawalia) sailesh JUDGE

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