Sheena Exports, V. ACIT Panipat Circle,

ITA 1659/DEL/2008

• Counselvise Citation: 165920114 RSA 2008
• Duration Of Justice: 3 year(s) 10 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 22-03-2012
• Assessment Year: 1999-2000
• Appeal Filed On: 01-05-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S MOHANTY
• Keywords: Opportunity of being heard
• Section: 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: G NEW DELHI BEFORE SHRI S.V.MEHROTRA, ACCOUNTANT MEMBER AND SMT. DIVA SINGH, JUDICIAL MEMBER ITA NO: 1659/DEL/2008 A.Y. : - 1999-2000 M/S SHEENA EXPORTS VS. ACIT, PANIPAT CIRLCE UJHA ROAD, PANIPAT PANIPAT (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SOMIL AGGARWAL, CA & SH. TARUN KUMAR, ADV. RESPONDENT BY : SH. S.MOHANTY, D.R. O R D E R PER DIVA SINGH, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DT. 17.3.2008 OF LD.CIT(A), KARNAL PERTAINING TO A.Y. 1999-2000 WHEREIN THE ONLY ISSUE AGITATED BY THE ASSESSEE IS ADDRESSED VI DE GROUND NOS. 2 AND 3 WHICH READ AS UNDER. 2. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANC ES OF THE CASE, LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN NOT REVE RSING ACTION OF LD.AO IN NOT ALLOWING THE DEDUCTION U/S 80HHC IN FU LL AS CLAIMED BY THE ASSESSEE IN HIS RETURN OF INCOME 3. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANC ES OF THE CASE, LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN NOT REVE RSING ACTION OF LD.AO IN NOT GRANTING THE BENEFIT OF DEDUCTION U/S 80HHC ON THE AMOUNT OF DUTY DRAW BACK/DEPB/OTHER EXPORT INCENTIV ES. 2. IN THE CONTEXT OF THE GROUNDS RAISED IT WAS A C OMMON STAND OF THE PARTIES BEFORE THE BENCH THAT THE ISSUE HAS TO GO B ACK TO THE FILE OF A.O. FOR VERIFICATION ON THE FACTUAL ASPECT IN VIEW OF T HE JUDGEMENT OF THE APEX ITA 16 59/DEL/2008 PAGE 2 OF 3 A.Y. 1999-2000 M/S SHEENA EXPORTS, PANIPAT COURT IN THE CASE OF TOPMAN EXPORTS VS CIT (2012) 2 05 TAXMAN 119 (S.C.). A PERUSAL OF THE RECORD SHOWS THAT THE SAI D ISSUE CAME UP BEFORE THE TRIBUNAL WHEREIN THE COORDINATE BENCH VIDE ITS ORDER DT. 8.12.2009 DECIDED THE ISSUE AS UNDER. 3. WE HAVE CONSIDERED THE FACTS OF THE CASE AND S UBMISSIONS MADE BEFORE US. WE FIND THAT THE ISSUE STANDS COVE RED BY THE DECISION IN THE CASE OF TOPMAN EXPORTS AND GPN CASH EW EXPORTING CO.(SUPRA). FURTHER, THE ASSESSEE IS NOT ENTITLED TO THE DEDUCTION U/S 80 HHC AS PROVIDED IN THE THIRD PROVI SO. HOWEVER, THE ASSESSEE IS ENTITLED TO BENEFIT UNDER THE FIRST PROVISO TO SEC.80 HHC IN RESPECT OF THE FACE VALUE OF THE LICENSES ACCRUING TO IT IN THIS YEAR. THE AO IS DIRECTED TO WORK OUT THE DEDUCTION IN THE LIGHT OF AFORESAID DISCUSSION AFTE R HEARING THE ASSESSEE. 4. AS OTHER GROUNDS WERE NOT PRESSED BY THE LD.COU NSEL THE SAME ARE TAKEN AS DISMISSED. 5. IN THE RESULT, THE APPEAL IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 3. THE ASSESSEE BEING SITUATED IN PANIPAT AS SUCH THE REVENUE WENT IN APPEAL BEFORE THE HONBLE PUNJAB & HARYANA HIGH COURT BEING THE JURISDICTIONAL HIGH COURT. THE HONBLE HIGH COURT VIDE THEIR ORDER DT. 21.12.2010 REMANDED THE MATTER BACK TO THE TRIBUNAL TO BE DECIDED IN LINE WITH THE DIRECTION IN ITA NO. 299 OF 2010 CIT V. M/S FC SONDHI & CO.P.LTD. IT IS SEEN THAT AS PER THE PLEADINGS OF T HE PARTIES BEFORE THE BENCH ALSO BORNE OUT FROM RECORD NECESSARY FACTS HA VE TO BE ADDRESSED BY THE RESPECTIVE PARTIES, AS SUCH THE ISSUE HAS TO BE RESTORED TO THE A.O. TO DETERMINE THE FACTS AND DECIDE IN TERMS OF THE J UDGEMENT OF THE APEX COURT. THE SAID VIEW FINDS SUPPORT FROM THE JUDGEME NT OF THE JURISDICTIONAL HIGH COURT I.E. PUNJAB & HARYANA HIG H COURTS DECISION IN TURBO IMPEX VS. CIT, LUDHIANA (2012) 21 TAXMAN.COM 1230(P&H) WHEREIN THE TRIBUNALS ORDER WAS SET ASIDE AND THE ISSUE WAS REMANDED TO THE ASSESSING OFFICER WITH THE DIRECTION TO DECI DE THE SAME IN THE LIGHT ITA 16 59/DEL/2008 PAGE 3 OF 3 A.Y. 1999-2000 M/S SHEENA EXPORTS, PANIPAT OF THE JUDGEMENT OF THE APEX COURT IN TOPMAN EXPORT S VS. CIT, 205 TAXMAN 119 (S.C.). NEEDLESS TO SAY THAT THE A.O. S HALL PASS A SPEAKING ORDER IN ACCORDANCE WITH LAW AFTER GIVING THE ASSE SSEE A REASONABLE OPPORTUNITY OF BEING HEARD. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESS EE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 26.3. 2012 IMM EDIATELY AFTER CONCLUSION OF THE HEARING. SD/- SD/- (S.V.MEHROTRA ) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DT. : 26 TH MARCH, 2012 *MANGA COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CI T(A); 5.DR; 6.GUARD FILE BY ORDER DY. REGISTRAR // C O P Y //