TMI Blog2019 (3) TMI 474X X X X Extracts X X X X X X X X Extracts X X X X ..... o goods sold to the Export House, M/s.Abad Exports Private Limited. As noticed that deduction u/s 80HHC claimed by the assessee on account of sale to Export House, M/s.Abad Exports Private Limited which is in excess of the profits earned by the Export House. Therefore, for the limited purpose of quantification of deduction u/s 80HHC of the I.T.Act, the issue is restored to the Assessing Officer Claim u/s 10A - claim for unexpired period, i.e., assessment year 2002-2003 in respect of exports to Exports House other than IQF [individual Quick freezing] - HELD THAT:- Going by ABAD EXIM (P) LTD. [2018 (8) TMI 985 - KERALA HIGH COURT] the assessee would be entitled to the claim of deduction u/s 10A of the I.T.Act for the unexpired period, i.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aim of deduction u/s 80HHC was disallowed by the Assessing Officer, but the same was allowed by the first appellate authority. The first appellate authority allowed the claim of the assessee by finding that the decision of the Hon ble Supreme Court in the case of IPCA Laboratories Ltd. v. DCIT [(2004) 266 ITR 521 (SC)] was not applicable to the assessee. The Income Tax Appellate Tribunal found that both the supporting manufacturer and the export house have profits and hence the decision in the case of IPCA Laboratories Ltd. (supra) would not be applicable and the assessee was entitled to the deduction u/s 80HHC of the I.T.Act. 2.1 The Hon ble High Court in the judgment dated 07.08.2018, in para 3 (page 3) of the judgment, agreed with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. We have heard the rival submissions and perused the material on record. On perusal of the audited profits and loss account of the Export house, namely, M/s.Abad Exports Private Limited, it is clear that the Export House had earned profits before tax of ₹ 1,26,22,112. The claim of assessee s deduction u/s 80HHC of the I.T.Act is confined only to sale to Export House, M/s.Abad Exports Private Limited. This is evident from para 11 page 19 of the scrutiny assessment order dated 28.03.2005. The Export House had issued disclaimer certificate in Form No.10CCAB dated 22.12.2004, along with copy of revised CA certificate in Form No.10CCAC dated 23.02.2005. There is also evidence on record that the Export House, M/s.Abad Exports Private Li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td.]. It has to be noticed that for the subject year, after the amendment to Section 10A, mere processing does not entitle a claim under Section 10A But by the proviso added on amendment by substitution, the undertakings which were entitled under the earlier provision would be so entitled even under the new provision for the unexpired period of entitlement as per the earlier provision. Hence in considering such claim necessarily it would have to be examined whether the assessee had claimed and obtained the exemption in the years earlier to the amendment. 5. The Tribunal in its earlier order dated 30.10.2009, concerning assessment year 2002-2003, in ITA No.249/Coch/ 2007, did not adjudicate the issue of deduction u/s 10A of the I.T.Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for initial 5 years. A.Y. 1999-2000 No claim in view of loss as per return and treated as claimed and allowed. A.Y. 2000-2001 No claim in view of loss as per return and treated as claimed and allowed. A.Y. 2001-2002 AO / CIT(A) denied the claim. ITAT allowed. 5.1 Therefore, going by the judgment of the Hon ble High Court, the assessee would be entitled to the claim of deduction u/s 10A of the I.T.Act for the unexpired period, i.e., assessment year 2002-2003 in respect of exports to Exports House other than IQF. The quantification of the amount that the assessee is entitled for deduction u/s 10A of the I.T.Act ..... X X X X Extracts X X X X X X X X Extracts X X X X
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