TMI Blog1997 (4) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... hagwara and is assessed within the jurisdiction of ITO Ward No. 1, Phagwara. It is engaged in the export of cloth and garments. For the financial year 1993-94 relevant to the asst. yr. 1994-95 petitioner made exports to the tune of Rs. 1,60,14,968. Petitioner being an Indian company who made exports out of India became entitled to deduction of an amount of profits was provided in the statute from time to time derived by the petitioner from the exports of such goods or merchandise. One of the conditions for grant of deduction under s. 80HHC is incorporated in cl. (a) of sub-s. (2) of the s. 80HHC which reads as under : "(2)(a). This section applies to all goods or merchandise, other than those specified in cl. (b), if the sale proceeds of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sum of Rs. 5,47,210 was outstanding for which the petitioner was making vigorous efforts to recover. It sought further extension of period. Respondent vide letter, dt. 13th March, 1995, granted further extension upto 30th April, 1995. On 15th June, 1995 and 29th June, 1995, petitioner again requested the respondent to grant further extension of time as it had to file a case in the civil Court against one party for the recovery of Rs. 4,16,016 while the other party promised to remit the payment by first week of July, 1995. Respondent granted further extension upto 30th Nov., 1995. On 18th Dec., 1995, petitioner asked for further extension of time as the matter against the concerned party was in progress in Court. Respondent again granted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t further extension of time was rejected after judicious application of mind. It was recorded in the order that there was likelihood of prolonged legal battle between the petitioner and the parties from whom the amount was to be realised. There being no certainty of an early decision, the assessment proceedings could not be held up indefinitely by allowing extension from time to time. The matter related to the financial year 1993-94 and, therefore, no further extension of time could be granted. The ITO after the refusal of extension of time by the CIT rectified its previous order, dt. 4th June, 1996 in exercise of its powers order, dt. 4th June, 1996 in exercise of its powers under s. 154 of the Act vide order, dt. 24th March, 1997 withdraw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceedings under s. 138 of the Negotiable Instruments Act, 1881 had started between the petitioner and the defaulting party, which was not likely to conclude soon, further extension in time was declined. Extension has not to be given on the mere asking. Rather the section provides that extension can be given only after recording reasons for doing so. The CIT was satisfied that any further extension of time would be futile causing loss to the Revenue. In the facts and circumstances of the case, it cannot be held that discretion exercised by the CIT was arbitrary or unjust. In our view, CIT exercised his discretion in a very fair manner. For grant of extension in time, reasons have to be recorded whereas there is no such requirement for decli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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