What did the High Court hold?

The High Court set aside the Tribunal's order and remanded the matter back to the Tribunal. This was done to allow parties an opportunity to adduce evidence, following a Supreme Court judgment.

The assessee, M/s Flora Exports, claimed export benefits for shipments where the main export house declared it would not claim such benefits. The Tribunal had dismissed the assessee's appeal against the CIT(A)'s order.

What were the issues?

Whether the assessee can claim export benefits when the main exporter has waived them, and whether the Tribunal's dismissal was appropriate without further evidence.

M/S Flora Exports vs CIT | Punjab & Haryana High Court 2023

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

ITA No.199 of 2009 (O&M)

Date of decision: 14.02.2023 M/s Flora Exports

…Appellant

Vs. Commissioner of Income Tax (Appeals), Karnal and another

…Respondents CORAM: HON’BLE MS. JUSTICE RITU BAHRI

HON’BLE MRS. JUSTICE MANISHA BATRA

Present: Mr. Akshay Bhan, Senior Advocate,

with Mr. Amandeep Singh Talwar, Advocate,

for the appellant.

Ms. Gauri Neo Rampal, Standing Counsel,

for the respondents.

**** Ritu Bahri, J. (oral)

The instant, appeal under Section 260 A of the Income Tax Act, 1961, has been filed against the order dated 29.08.2008 passed by the Income Tax Appellate Tribunal, Delhi, whereby appeal filed by by M/s Flora Exports-assessee against the order dated 10.01.2007 passed by the Commissioner of Income Tax (Appeals), Karnal, has been dismissed.

After perusing the impugned order, it transpires that in the case of the present assessee, the main export house had declared that it would not claim and did not claim the benefit of Duty entitlement passbook scheme for the shipments, details of which, were given and also declared that it has no objection, if the benefit is claimed by M/s Flora Exports-assessee (appellant). This finding of fact has been recorded by the Tribunal and the claim of the assessee is that for the same export, only he has claimed the AJAY PRASHER 2023.02.23 12:25 I attest to the accuracy and integrity of this document

benefit of deduction as an exporter and this claim cannot be rejected on the ground that the appellant is a supporting manufacturer.

Hon’ble the Supreme Court in Commissioner of Income Tax, Karnal (Haryana) vs. M/s Carpet India, Panipat (Haryana), 2019 AIR (Supreme Court) 5032, has allowed an appeal, filed by the revenue and remanded the case to the Appellate Authority to pass a fresh order after giving opportunity to the parties to adduce any evidence/necessary .

Keeping in view the judgment passed by Hon’ble the Supreme Court in M/s Carpet India’s case (supra), the impugned order dated 29.08.2008 passed by the Income Tax Appellate Tribunal, Delhi, Bench ‘C’, Delhi, is set aside and the matter is remanded to the said Tribunal to pass a fresh order after affording opportunity to the parties to adduce any evidence/necessary facts.

Disposed of accordingly.

(RITU BAHRI)

JUDGE

(MANISHA BATRA)

JUDGE 14.02.2023 ajp

Whether speaking/reasoned : Yes/No

Whether reportable

: Yes/No

AJAY PRASHER 2023.02.23 12:25 I attest to the accuracy and integrity of this document

M/S FLORA EXPORTS vs. CIT, KARNAL AND ANR.

What did the High Court hold?

What were the facts?

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Which sections of the Income-tax Act were involved?

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