TMI Blog2004 (7) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... t of India and has been subjected to customs clearance, the deduction is not to be allowed. In this view of the matter, there is no necessity for relegating the petitioner to file a fresh return and submit reply before the Assessing Officer – hence, writ petitions succeed and are allowed. The notices issued under section 148 and consequential proceedings are set aside - - - - - Dated:- 26-7-2004 - Judge(s) : R. K. AGARWAL., K. N. OJHA. JUDGMENT In Writ Petitions Nos. 875 and 961 of 2000 filed by M/s. Marble Men, notices issued under section 148 of the Income-tax Act, 1961 (hereinafter referred to as "the Act") for the assessment year 1996-97 and for the assessment year 1998-99, respectively, have been challenged. In Writ Petition No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nter sales made against foreign exchange. A Division Bench of this court in the case of Ram Babu and Sons v. Union of India [1996] 222 ITR 606 has held that benefit of special deduction under section 80HHC is available in respect of the counter sales effected against the convertible foreign exchange if the goods are taken out of the country and the transaction is subjected to customs clearance. The aforesaid view has been approved by the hon'ble Supreme Court in the case of CIT v. Silver and Arts Palace [2003] 259 ITR 684. Since the view taken by this court in the case of Ram Babu and Sons [1996] 222 ITR 606 has been approved by the hon'ble Supreme Court in the case of CIT v. Silver and Arts Palace [2003] 259 ITR 684, and this court has tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could have formed any reasonable belief. In the present case, the action under section 148 of the Act has been initiated solely on the ground that the counter sales effected against convertible foreign exchange even though it has been exported out of India and has been subjected to customs clearance, the deduction is not to be allowed. In this view of the matter, there is no necessity for relegating the petitioner to file a fresh return and submit reply before the Assessing Officer. In view of the foregoing discussion, all the three writ petitions succeed and are allowed. The notices issued under section 148 of the Act and consequential proceedings are set aside. However, there shall be no orders as to costs. - - TaxTMI - TMITax - I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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