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2015 (8) TMI 115 - ITAT DELHI

2015 (8) TMI 115 - ITAT DELHI - TMI - Deduction u/s 80HHC on transfer of DEPB - Held that:- Allow the appeals of the assessee on this issue and remit the issue back to the file of the AO for re-computing the deduction admissible u/s 80HHC by keeping in view the judgment of the Hon’ble Jurisdictional High Court in the case of M/s Priknit Exports Vs ACIT (2013 (10) TMI 315 - PUNJAB AND HARYANA HIGH COURT).- Decided partly allowed in favour of assessee for statistical purposes. - ITA No. 1574/Del/2 .....

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ff by this consolidated order for the sake of convenience and brevity. 3. First we will deal with the appeal in ITA No. 574/Del/2008. Following grounds have been raised in this appeal: 1. On the facts and circumstances of the case, the order passed by the learned CIT(A) is bad, both in the eye of law and on facts. 2(i) On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in rejecting the contention of the appellant that the initiating of proceedings .....

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ircumstances of the case, the learned CIT(A) has erred, both on facts and in law, in upholding the action of AO in reducing the deduction u/s 80HHC to ₹ 3,30,73,168/- and enhanced the assessment by ₹ 1,00,70,390/-. (ii) On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in rejecting the contention of the assessee that only the profit arising on transfer of DEPB has to be excluded from computing deduction u/s 80HHC and not the total amo .....

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for the assessee at the very outset stated that the issue is covered vide order dated 11.10.2013 in ITA Nos. 3527 & 3608/Del/2008 for the assessment years 2000-01 & 2004-05 respectively in the case of M/s Groz Net Industries, New Delhi Vs ACIT, Circle-22(1), New Delhi (copy of the said order was furnished which is placed on record). 5. In her rival submissions the ld. Sr. DR although supported the order of the ld. CIT(A) but could not controvert the aforesaid contention of the ld. Counse .....

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er: 4. Thus the common issue in both the years is, whether deduction u/s. 80HHC deserves to be recomputed in view of the Second Taxation Law(Amendment) Act, 2005. For the facility of reference, we are taking up the facts from assessment year 2000-01. The brief facts are that assessee has filed its return of income on 31st October 2010 declaring taxable income of ₹ 17,440 which has been arrived at after claiming deduction under sec. 80HHC at ₹ 446,04,969. The return of the assessee wa .....

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e as per the proviso to the said section on account of DEPB income is allowed. Learned A.O. has recorded reasons for reopening of the assessment. He issued a notice under sec. 148 upon the assessee and passed the reassessment order on 20.12.2007 whereby he has restricted the deduction under sec. 80- HHC at ₹ 370,41,649 as against ₹ 446,04,969 computed by the assessee. This computation of the Assessing Officer has been upheld in the appeal as well as by the ITAT. The assessee filed mi .....

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on of Hon'ble Bombay High Court in the case of Kalpataru Colors & Chemicals and restored that of the ITAT. On account of this development, ITAT has recalled its earlier order and listed these appeals for fresh hearing on this issue. The learned counsel for the assessee further contended that Taxation Law (Amendment) Act 2005 was challenged in a number of writ petitions before different Hon'ble High Courts. Hon'ble Supreme Court has transferred all such writ petitions to Hon'b .....

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gh Court in the case of Prikuit Exports vs. ACIT in writ petition No. 1335 of 2008. On the strength of these decisions, he contended that provision is not applicable on the cases of the assessee and computation made by the assessee is to be accepted. On the other hand, Learned DR was unable to controvert the contentions of the learned counsel for the assessee. 5. We have duly considered the rival contentions and gone through the record carefully. After looking to the facts and circumstances, we .....

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Supreme Court had directed transfer of all those writ petitions to the High Court of Gujarat. The High Court of Gujarat vide judgment dated July 02, 2012 decided the said bunch of writ petitions and quashed the impugned amendment only to the extent that the operation of the said section could be given effect from the date of the amendment and not in respect of earlier assessment years. The Bombay High Court following the aforesaid judgment of the Gujarat High Court, disposed of all the writ peti .....

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s, therefore, did not stand transferred to the Gujarat High Court. Keeping mind that the Supreme Court had transferred all the matters to the Gujarat High Court in order to avoid confusion and difficulties in enforcement of conflicting judgments of different High Courts, we are of the view that it would be appropriate in these writ petitions to follow the judgment of the Gujarat High Court. In the circumstances, for the above reason, the Writ Petitions, other than the first four Writ Petitions, .....

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