COMMISSIONER OF INCOME TAX V. M/S RAVI EXPORTS LTD

TAXAP/2247/2010

AI Insights

The case involves a series of tax appeals by the Commissioner of Income Tax against M/S Ravi Exports Ltd., concerning different assessment years. The core legal issue was whether the ITAT erred in law by restoring the issue to the Assessing Officer for the allowance of relief under Section 80HHC(3) of the Income Tax Act, specifically regarding the treatment of DEPB proceeds. The ITAT had relied on a decision by the Special Bench of ITAT Bombay in Topman Exports vs. ITO, which was confirmed by the Supreme Court. The revenue's appeal was based on a contrary view previously held by the Bombay High Court, which was also set aside by the Supreme Court.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 728604 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 03-12-2013
• Assessment Year: misc
• Other Referred Cases: Topman Exports vs. ITO, Topman Exports vs. Commissioner of Income Tax
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: B S SOPARKAR
• Assessee Lawyers: S UDHIR M EHTA
• Keywords: DEPB; Income Tax; ITAT; Profit reduction; Tax appeal
• Section: 80HHC(3)

Judgement Text

"O/TAXAP/2245/2010 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL NO. 2245 of 2010 With TAX APPEAL NO. 2246 of 2010 TO TAX APPEAL NO. 2247 of 2010 FOR APPROVAL AND SIGNATURE: HONOURABLE MR.JUSTICE M.R. SHAH ­ sd/­ and HONOURABLE MR.JUSTICE R.P.DHOLARIA ­ sd/­ ============================================ 1. Whether Reporters of Local Papers may be allowed to see the judgment ? NO 2. To be referred to the Reporter or not ? NO 3. Whether their Lordships wish to see the fair copy of the judgment ? NO 4. Whether this case involves a substantial question of law as to the interpretation of the constitution of India, 1950 or any order made thereunder ? NO 5. Whether it is to be circulated to the civil judge ? NO ============================================= COMMISSIONER OF INCOME TAX....Appellant(s) Versus M/S RAVI EXPORTS LTD....Opponent(s) ============================================= Appearance: MR SUDHIR M MEHTA, ADVOCATE for the Appellant(s) No. 1 MR B S SOPARKAR, ADVOCATE for the Opponent(s) No. 1 ============================================= CORAM: HONOURABLE MR.JUSTICE M.R. SHAH and HONOURABLE MR.JUSTICE R.P.DHOLARIA Date : 03/12/2013 ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE M.R. SHAH) 1.0. As common question of law and facts arise in this group of appeals and as such arising out of the impugned judgment and order passed by Page 1 of 3 O/TAXAP/2245/2010 JUDGMENT the learned Income Tax Appellate Tribunal (hereinafter referred to the as the “ITAT”) and with respect to same assessee but with respect to different assessment year, all these appeals are disposed of by this common judgment and order. 2.0. All these Tax Appeals have been preferred by the revenue against the impugned common judgment and order passed by the learned ITAT dated 30.4.2010 passed in ITA No. 2400, 2401 and 2402/AHD/2007 fop AY 1999­2000, 2000­01 and 2004­05 respectively. 3.0. In all these appeals a common question of law which arise for consideration is as to whether the Tribunal below has committed any error of law in restoring the issue to the file of the Assessing Officer for allowance of relief under Section 80HHC(3)of the Income Tax Act by reducing only profit and not entire sale proceeds arising out of the DEPB. 4.0. Shri S.N. Soparkar, learned Senior counsel for the assessee has submitted that the learned ITAT while passing the impugned judgment and order has relied upon the decision of the Special Bench of ITAT Bombay in the case of Topman Exports vs. ITO reported in 318 ITR 87. It is reported that the aforesaid decision of the special Bench has been confirmed by the Hon’ble Supreme Court in the case of Topman Exports vs. Commissioner of Income Tax reported in (2012) 342 ITR 49(SC). It is submitted that the decision of the Bombay High Court taking the contrary view has been set aside by the Hon’ble Supreme Court and the view taken by the Special Bench in the case of Taxman Export (supra) has been restored. In view of the above, it is requested to dismiss the present appeals. Page 2 of 3 O/TAXAP/2245/2010 JUDGMENT 5.0. Shri Sudhir Mehta, learned advocate for the revenue is not in a position to dispute the above. He has also not pointed out any contrary decision to the decision of the Hon’ble Supreme Court in the case of Taxman Exports (Supra) relied upon by the learned advocate for the assessee. 6.0. Having heard Shri Sudhir Mehta, learned advocate for the revenue and Shri S.N. Soparkar, learned Senior counsel for the assessee and the issue involved in the present appeals and the question raised / formulated, we are of the opinion that the aforesaid issue is now not res­ integra in view of the decision of the Hon’ble Supreme Court in the case of Taxman Exports(supra). In the aforesaid decision, it has been held that for allowance of relief under Section 80HHC(3)of the Act only the profit and not entire sales proceeds arising out of the DEPB is required to be reduced / considered. 7.0. Applying the law laid down by the Hon’ble Supreme Court in the case of Taxman Exports (supra), the question raised / formulated in the present appeals is answered against the revenue. Consequently, all the appeals deserve to be dismissed and are accordingly dismissed. No costs. sd/­ (M.R.SHAH, J.) sd/­ (R.P.DHOLARIA,J.) Kaushik Page 3 of 3 "