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2015 (8) TMI 507 - HC - Income TaxDeduction under section 80HHC denied - AO disallowed the said claim on the ground that the STC had declared loss, they had not earned any profit out of such exports. Secondly, on the ground that the deduction under section 80HHC of the Act is permissible only when the realisation is in foreign exchange - ITAT allowed claim - Held that:- To attract the said provision, the supporting manufacturer who sells the goods or merchandise to the export house or trading house, the export house and trading house has to issue a certificate under the proviso to sub- section (1) of section 80HHC of the Act. If these two conditions are fulfilled, then the supporting manufacturer is entitled to the deduction as contemplated under section 80HHC of the Act to an extent as mentioned in section 80HHC(1B) of the Act. It is immaterial whether in the process, export house or trading house sells the goods to any foreign country or earns profit or realises any foreign exchange. In order to attract section 80HHC(1A) of the Act after purchase of goods or merchandise from the supporting manufacturer, the said goods has to be exported out of India. Once such export is established, a certificate under the proviso to sub-section (1) is issued by the export house or trading house and when they are not claiming the benefit under section 80HHC, the assessee would be entitled to the benefit of deduction as prescribed under section 80HHC(1A) of the Act. Even the circulars relied on do support the case of the assessee. - Decided in favour of assessee. Whether Tribunal was right in concluding that the assessee has apparently complied with the statutory requirements provided in section 80HHC(1A) for claiming the deduction, even though the requisite certificate duly signed by an accountant as defined in the Explanation below sub-section (2) of section 288 of the Income-tax Act, 1961, has not been filed along with the R/I? - Held that:- This court had an occasion to consider this question in the case of ITO v. Mandira D. Vakharia [2000 (11) TMI 48 - KARNATAKA High Court] where it has been held that even though the requisite certificate duly signed by an accountant as defined in sub-section (2) of section 88 of the Act is not produced along with the return, if it is produced even in the course of proceedings, it has to be taken note of and given the benefit. Therefore, the Tribunal was justified in granting the relief to the assessee relying upon the certificate produced in the course of the proceedings. - Decided in favour of the assessee.
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