DCIT, Circle-11(1), V. Expotech International Ltd.,

ITA 1225/DEL/2005

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 9722 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2009
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 16-09-2009
• Assessment Year: 2001-2002
• Appeal Filed On: 11-03-2005
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PRATIMA KAUSHIK
• Keywords: Retrospective amendment
• Section: 80HHC; 80HH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G DELHI BEFORE SHRI K.G. BANSAL AND SHRI GEORGE MATHAN I.T.A. NO. 1225(DEL)/2005 ASSESSMENT YEAR: 2001-02 DY. COMMISSIONER OF INCOME M/ S EXPOTECH INTERNATIONAL TAX, CIRCLE 11(1), NEW DELHI. VS. LT D., NO. 8, ARADHANA COLONY, SECTOR-13, R.K. PURAM, NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : MS. PRATIMA KAUSHIK , SR. DR RESPONDENT BY : SHRI GAURAV JAIN, ADVOCATE ORDER PER K.G. BANSAL : AM THIS APPEAL EMANATES FROM THE ORDER OF THE CI T(APPEALS)-XIV, NEW DELHI, PASSED ON 3.12.2004 IN APPEAL NO. 47/04-05 AND IT PERTAINS TO ASSESSMENT YEAR 2001-02. THE REVENUE HAS T AKEN THE FOLLOWING GROUNDS IN THE APPEAL:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN DIRECTING THE AO TO RECOMPUTE THE DEDUCTION ALLOWABLE TO ASSESSEE U/S 80HHC AF TER TAKING INTO CONSIDERATION THE SALE PROCEEDS OF DEPB LICENCES IN SPITE OF THE FACT THAT: (I) THE DEDUCTION U/S 80HHC IS ALLOWABLE FROM THE TOTAL INCOME ONLY IN RESPECT OF PROFITS DERIVED FRO M THE EXPORT OF GOODS OR MERCHANDIZE WHICH ARE REALIZED IN CO NVERTIBLE FOREIGN EXCHANGE. ITA NO. 1225(DEL)/2005 2 (II) THE INCOME FROM THE SALE OF DEPB LICENCE I S MERELY AN INCIDENTAL INCOME ARISING DUE TO A GOVERNMENT SCHEME AND CANNOT BE TREATED AS PROFIT FROM EXPORT OF GOO DS OR MERCHANDIZE. (III) THE RECEIPT ON ACCOUNT OF SALE OF DEPB LI CENCE HAS NOT BEEN REALIZED IN CONVERTIBLE FOREIGN EXCHANGE. 2. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE F AIRLY CONCEDED THAT IN VIEW OF RETROSPECTIVE AMENDMENT OF SECTION 80HH C LEADING TO INSERTION OF PROVISOS THEREIN, THE GROUNDS HAVE TO BE DE CIDED IN FAVOUR OF THE REVENUE AS THE EXPORT TURNOVER EXCEEDED RS. 10 CRORE. THUS, THIRD PROVISO TO THE SECTION 80HHC(3) COMES INTO OPE RATION. IN VIEW OF THIS SUBMISSION, THE LEARNED DR DID NOT ARGUE THE CASE AT LENGTH. HAVING CONSIDERED THE FACTS OF THE CASE AND SUBMISSIO NS MADE BEFORE US, IT IS HELD THAT THE ASSESSEE WAS NOT ENTITLED TO DEDU CTION U/S 80HHC IN RESPECT OF PROFITS ON DEPB. 3. IN THE RESULT, THE APPEAL IS ALLOWED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT ON 1 6.09.2009 SOON AFTER THE COMPLETION OF THE HEARING. SD/- SD/- (GEORGE MATHAN) (K.G. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE OF ORDER: 16.09.2009. SP SATIA ITA NO. 1225(DEL)/2005 3 COPY OF THE ORDER FORWARDED TO:- M/S EXPOTECH INTERNATIONAL LTD., DELHI. DY.CIT, CIRCLE 11(1), NEW DELHI. CIT CIT(A) THE DR, ITAT, NEW DELHI. ASSISTANT REGIST RAR.