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2017 (5) TMI 1099 - AT - Income TaxDisallowances deduction u/s. 80HHC - scope of amendment - Held that:- Hon'ble Gujarat High Court in AVANI EXPORTS & OTHERS v/s CIT [2012 (7) TMI 190 - GUJARAT HIGH COURT] held that the impugned amendment granting benefit restricting it to a class of assessees whose turnover is less than ₹ 10 crores is permissible prospectively but the way it has been enacted, it takes away an enjoyed right of a class of citizens who availed of the benefit by complying with the requirements of the then provisions of law. The Hon'ble Court has further held that the impugned amendment is violative for its retrospective operation in order to overcome the decision of the Tribunal, and at the same time, for depriving the benefit earlier granted to a class of the assessees whose assessments were still pending although such benefit will 'be available to the assessees whose assessments have already been concluded. The Hon'ble High Court has quashed the impugned amendment only to the extent that the operation of the said section could be given effect from the date of amendment and not in respect of the earlier assessment years of the assessees whose export turnover is above ₹ 10 crores. Therefore, in view of the above decision by the Hon'ble Gujarat High Court, the disallowance u/s 80HHC amounting to ₹ 1,66,77,703/-, which was made merely on the basis of the amended provisions of Section 80HHC, was rightly deleted, which does not need any interference on our part, hence, we uphold the same and dismiss the ground raised by the Revenue.
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