Perfect Forgings V. Commissioner of Income Tax-II, Ludhiana

ITA/373/2011

AI Insights

The case involves M/s Perfect Forgings, the appellant, contesting an order from the Income Tax Appellate Tribunal regarding the computation of deduction under Section 80HHC of the Income Tax Act, 1961. The dispute centered on the treatment of export incentives such as Duty Entitlement Pass Book (DEPB), Duty Draw Back (DBK), and Duty Free Remission Scheme (DFRC). The High Court of Punjab and Haryana at Chandigarh decided the appeal based on precedents set by the Supreme Court in Topman Exports, which influenced the computation of such deductions.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 796290 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 03-04-2012
• Assessment Year: misc
• Other Referred Cases: Commissioner of Income Tax v. Kalpataru Colours and Chemicals, M/s Turbo Impex v. Commissioner of Income Tax-II, Ludhiana, Topman Exports v. Commissioner of Income Tax, Mumbai
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SAVITA SAXENA
• Assessee Lawyers: RAJIV SHARMA
• Keywords: Deduction; Duty Draw Back; Duty entitlement pass book; Export incentive; Income Tax; Duty Free Remission Scheme
• Section: 80HHC; 260A

Judgement Text

"IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 373 of 2011 (O&M) Date of Decision: April 3, 2012 M/s Perfect Forgings …Appellant Versus Commissioner of Income Tax-II, Ludhiana …Respondent CORAM: CORAM: CORAM: CORAM: HON’BLE MR. JUSTICE M.M. KUMAR HON’BLE MR. JUSTICE M.M. KUMAR HON’BLE MR. JUSTICE M.M. KUMAR HON’BLE MR. JUSTICE M.M. KUMAR HON’BLE MR. J HON’BLE MR. J HON’BLE MR. J HON’BLE MR. JUSTICE USTICE USTICE USTICE ALOK SINGH ALOK SINGH ALOK SINGH ALOK SINGH Present: Mr. Rajiv Sharma, Advocate. for the assessee-appellant. Ms. Savita Saxena, Advocate, for the respondent-revenue 1. To be referred to the Reporters or not? 2. Whether the Judgment should be reported in the Digest M.M. KUMAR M.M. KUMAR M.M. KUMAR M.M. KUMAR, J. , J. , J. , J. 1. This appeal filed under Section 260A of the Income Tax Act, 1961 (for brevity, ‘the Act’) challenges order dated 30.6.2011, passed by the Chandigarh Bench of the Income Tax Appellate Tribunal (for brevity, ‘the Tribunal’) deciding the issue of computation of deduction under Section 80HHC of the Act on export incentive Duty Entitlement Pass Book (DEPB); Duty Draw Back (DBK); and Duty Free Remission Scheme (DFRC) against the assessee-appellant in the light of the judgment of Bombay High Court rendered in the case of Commissioner of Income Tax Commissioner of Income Tax Commissioner of Income Tax Commissioner of Income Tax v. v. v. v. Kalpataru Colours and Chemicals Kalpataru Colours and Chemicals Kalpataru Colours and Chemicals Kalpataru Colours and Chemicals, (2010) 328 ITR 451 (Bom) , (2010) 328 ITR 451 (Bom) , (2010) 328 ITR 451 (Bom) , (2010) 328 ITR 451 (Bom). ITA No. 373 of 2011 (O&M) ITA No. 373 of 2011 (O&M) ITA No. 373 of 2011 (O&M) ITA No. 373 of 2011 (O&M) 2 2. Notice of motion. Ms. Savita Saxena, standing counsel for the revenue-respondent, who is present in the Court, accepts notice. With the consent of the learned counsel the appeal is taken up for final disposal today itself. 3. Learned counsel for the parties are ad idem that the present appeal is squarely covered by our judgment in a bunch of appeals, rendered in the case of M/s Turbo Impex M/s Turbo Impex M/s Turbo Impex M/s Turbo Impex v. v. v. v. Com Com Com Commissioner missioner missioner missioner of Income Tax of Income Tax of Income Tax of Income Tax- - - -II, Ludhiana II, Ludhiana II, Ludhiana II, Ludhiana (ITA No. 361 of 2011, decided on (ITA No. 361 of 2011, decided on (ITA No. 361 of 2011, decided on (ITA No. 361 of 2011, decided on 20.3.2012) 20.3.2012) 20.3.2012) 20.3.2012) wherein we have allowed the appeals in the light of the principles enunciated by Hon’ble the Supreme Court in the case of Topman Exports Topman Exports Topman Exports Topman Exports v. v. v. v. Commissioner of Income Tax, Mumbai Commissioner of Income Tax, Mumbai Commissioner of Income Tax, Mumbai Commissioner of Income Tax, Mumbai, , , , (2012) 3 (2012) 3 (2012) 3 (2012) 3 SCC 593 SCC 593 SCC 593 SCC 593. 4. Accordingly, the instant appeal is also allowed in terms of the judgment of Hon’ble the Supreme Court rendered in the case of Topman Exports (supra) Topman Exports (supra) Topman Exports (supra) Topman Exports (supra). The impugned order passed by the Tribunal is set aside. The matter is remanded back to the Assessing Officer with a direction to compute the deduction under Section 80HHC of the Act in accordance with law and in the light of the judgment of Hon’ble the Supreme Court in the case of Topman Topman Topman Topman Exports (supra) Exports (supra) Exports (supra) Exports (supra). (M.M. KUMAR) (M.M. KUMAR) (M.M. KUMAR) (M.M. KUMAR) JUDGE JUDGE JUDGE JUDGE ( ( ( (ALOK SIN ALOK SIN ALOK SIN ALOK SINGH GH GH GH) ) ) ) April 3 April 3 April 3 April 3, 201 , 201 , 201 , 2012 2 2 2 JUDGE JUDGE JUDGE JUDGE PKapoor "