2005 (4) TMI 46 - HC - Income Tax

Application made by the petitioner on September 10 1997 seeking extension under section 80HHC(2)(a) for realisation of outstanding export proceeds - explanation given by the assessee for delayed receipt of proceeds for exports vide aforesaid invoices was due to slackness in the diamond industries and they are also facing financial crises . - assessee s explanation suggests that reason was beyond his control. Therefore Commissioner of Income-tax is directed to reconsider the petitioner s application dated September 10 1997 seeking extension under section 80HHC(2)(a) in accordance with law.

Summary

The High Court of Bombay reviewed a case involving extension under section 80HHC(2)(a) for realisation of outstanding export proceeds. The court found that the delayed payments were beyond the assessee's control due to industry and financial crises. The court set aside the previous order and directed the Commissioner of Income-tax to reconsider the application in accordance with the law.