Clarification regarding provisions of sections 80HHC and 80HHE of the Income-tax Act, 1961 - Income Tax - NIL

Clarification regarding provisions of sections 80HHC and 80HHE of the Income-tax Act, 1961 Circular No. Nil Dated 17/2/2004 To, All the Chief Commissioners/Directors General of Income-tax. Subject : Clarification regarding provisions of sections 80HHC and 80HHE of the Income-tax Act, 1961. Madam/Sir, Vide letter F. No. 178/10/2001-ITA-I, dated 18th August, 2003, addressed to all the Chief Commissioners/Directors General of Income-tax, the Board had decided that all the appeals which pertain to section 80HHC and section 80HHE of the Income-tax Act, 1961, pending at the level of the Commissioner of Income-tax (Appeals) be kept in abeyance and not to enforce the collection of demand attributable to such issues. It was further decided that the assessments involving such issues pending at the level of Assessing Officers may also be kept in abeyance till 30th November, 2003, by which time the decision in these issues was expected to be finalised, unless the matter was getting time-barred. 2. After a detailed examination of the issues relating to section 80HHC, including the allowance of the deduction on credits in respect of the Duty Entitlement Passbook Scheme, it has been decided that it is not feasible for the Board to intervene in these matters, at this stage. However, the issue regarding section 80HHE has been clarified and accordingly a Circular No. 3 of 2004, dated 12th February, 2004*, has been issued in this regard. 3. The Board's direction for keeping in abeyance various appeals/enforcement of collection of demand/assessments involving such issues as mentioned in para. 1 above is extended from 30th November, 2003, till the date of issue of this letter. 4. This may please be brought to the notice of all the officers working in your region. (Sd.) Devi Sharan Singh, Under Secretary (OT). [F. No. 178/32/2002-ITA-I] *See [2004] 266 ITR (St.) 54.