ACIT, Ludhiana V. M/s Hero Exports, Ludhiana

MA 84/CHANDI/2007

• Counselvise Citation: [2012] 123 COUNSELVISE.COM (IT) 8605 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 year(s) 3 month(s) 7 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-06-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 18-05-2012
• Assessment Year: 1998-1999
• Appeal Filed On: 27-02-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: N K SAINI
• Keywords: Rectification of order
• Section: 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B CHANDIGARH BEFORE SHRI H.L. KARWA, VP AND SHRI T.R. SOOD, AM MISC. APPLICATION NO. 84/CHD/2007 ARISING OUT OF ITA NO. 239/CHD/2003 ASSESSMENT YEAR: 1998-99 A.C.I.T. C.C-V V. M/S HERO EXPORTS LUDHIANA LUDHIANA PAN: (APPELLANT) (RESPONDENT) APPELLANT BY: WRITTEN SUBMISSIONS RESPONDENT BY: SHRI N.K. SAINI DATE OF HEARING: 25.05.2012 DATE OF PRONOUNCEMENT: 06 .06.2012 ORDER PER T.R. SOOD, A.M THROUGH THIS MISC. APPLICATION THE REVENUE HAS SOUG HT RECTIFICATION OF MISTAKE IN THE ORDER OF THE TRIBUNAL IN ITA NO. 239 /CHD/2003. THE LD. DR FOR THE REVENUE POINTED OUT THAT THE ASSESSING OFFICER HAD DISALLOWED 10% OF INCENTIVE ON ACCOUNT OF MISCELLANEOUS INCOME BROKER AGE FOR WORKING OUT THE INDIRECT COST OF GOODS FOR THE PURPOSE OF COMPUTING DEDUCTION U/S 80HHC OF THE ACT. HOWEVER, ON APPEAL, THE LD. CIT(A) ALLOWED TH E ASSESSEES APPEAL. ON FURTHER APPEAL OF THE REVENUE TO THE TRIBUNAL, THE SAME WAS DISMISSED BY THE TRIBUNAL FOLLOWING THE EARLIER YEARS ORDER. 2. BEFORE US, THE LD. DR FOR THE REVENUE SUBMITTED THAT THE DECISION OF THE TRIBUNAL FOR THE EARLIER YEARS HAS BEEN REVERSED BY THE HON'BLE PUNJAB & HARYANA HIGH COURT VIDE ORDER DATED 22.12.2006 IN I TA NO. 89 OF 2005. THEREFORE, THE ORDER MAY BE RECTIFIED ACCORDINGLY. 3. ON THE OTHER HAND, IN THE WRITTEN SUBMISSIONS IT HAS BEEN POINTED OUT THAT THE DECISION OF HON'BLE PUNJAB & HARYANA HIGH COURT WAS REVERSED BY THE HON'BLE SUPREME COURT IN THE CASE OF HERO EXPORTS V . CIT, (2007) 295 ITR 454 (SC) AND THEREFORE, THE VIEW TAKEN BY THE TRIBUNA L IS CORRECT. 2 4. WE HAVE HEARD THE RIVAL SUBMISSIONS CAREFULLY AN D FIND THAT THE HON'BLE SUPREME COURT IN THE CASE OF HERO EXPORTS V CIT (SU PRA) HELD AS UNDER: HELD, REVERSING THE DECISION OF THE HIGH COURT, TH AT THE ASSESSEE WAS ENTITLED TO EXCLUDE THE COSTS ATTRIBUTABLE TO EXPOR T INCENTIVES, COMMISSION, INTEREST, ETC., IN ARRIVING AT THE EXPE NSES ATTRIBUTABLE TO THE EXPORT TRADE. THEREFORE, RESPECTFULLY FOLLOWING THE ORDER OF THE HON'BLE APEX COURT WE FIND THAT THERE IS NO ERROR IN THE ORDER OF THE TRIBUNAL AND ACCORDINGLY THERE IS NOT MERIT IN THE MISC. APPLICATION FILED BY THE REVENUE . 5. IN THE RESULT, MISC. APPLICATION FILED BY THE RE VENUE IS DISMISSED. ORDER PRONOUNCED ON 6.6.2012 SD/- SD/- (H.L. KARWA) (T.R. SOOD) VICE PRESIDENT ACCOUNTANT MEM BER DATED: 6 .6 .2012 SURESH COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT/THE C IT(A)/ THE DR 3