The K.H.Exports India Private Limited, CHENNAI v. ITO (OSD), CHENNAI

ITA 2156/CHNY/2014 | 2002-2003
Pronouncement Date: 13-11-2014 | Result: Allowed

Appeal Details

RSA Number 215621714 RSA 2014
Assessee PAN AAACK1394E
Bench Chennai
Appeal Number ITA 2156/CHNY/2014
Duration Of Justice 2 month(s) 25 day(s)
Appellant The K.H.Exports India Private Limited, CHENNAI
Respondent ITO (OSD), CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 13-11-2014
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 13-11-2014
Assessment Year 2002-2003
Appeal Filed On 19-08-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH CHENNAI . . . !' # $! % BEFORE DR. O.K.NARAYANAN VICE-PRESIDENT AND SHRI VIKAS AWASTHY JUDICIAL MEMBER ./ ITA NOS. 2155 & 2156/MDS/2014 / ASSESSMENT YEARS : 2001-02 & 2002-03 THE K.H.EXPORTS INDIA PRIVATE LIMITED C/O AKBER RIFA & CO. FLAT NO.1A KERNITE KIP APTS DOOR NO.1 V-BLOCK 6 TH MAIN ROAD ANNA NAGAR CHENNAI 600 040. PAN AAACK1394E APPELLANT) V. THE INCOME-TAX OFFICER(OSD) COMPANY CIRCLE-II(4) (I/C) CHENNAI. RESPONDENT) / APPELLANT BY : MS. S. VIDYA CA / RESPONDENT BY : SHRI S. DAS GUPTA IRS JCIT ! / DATE OF HEARING : 13 TH NOVEMBER 2014 '# ! / DATE OF PRONOUNCEMENT: 13 TH NOVEMBER 2014 $& / O R D E R PER DR.O.K.NARAYANAN VICE-PRESIDENT THESE TWO APPEALS ARE FILED BY THE ASSESSE E. THE ASSESSMENT YEARS ARE 2001-02 AND 2002-03. THE APP EALS ARE DIRECTED AGAINST THE ORDERS PASSED BY THE COMMISSIO NER OF - - ITA 2155 & 2156/14 2 INCOME-TAX(APPEALS)-III AT CHENNAI ON 4.11.2011. THE APPEALS ARISE OUT OF THE ASSESSMENTS COMPLETED UNDER SEC. 1 43(3) READ WITH SEC.147 OF THE INCOME-TAX ACT 1961. 2. THE ASSESSEE IS A COMPANY ENGAGED IN THE BUSINES S OF MANUFACTURE AND EXPORT OF LEATHER GOODS. THE ASSES SEE HAS CLAIMED DEDUCTION UNDER SEC.80HHC IN COMPUTING THE TOTAL INCOME FOR BOTH THE ASSESSMENT YEARS UNDER APPEAL. THE CLAIM MADE BY THE ASSESSEE COMPANY WAS REJECTED BY THE AS SESSING OFFICER AND THE COMMISSIONER OF INCOME-TAX(APPEALS) CONFIRMED THE DISALLOWANCE. 3. WE HEARD MS. S. VIDYA THE CHARTERED ACCOUNTANT APPEARING FOR THE ASSESSEE AND SHRI S. DAS GUPTA T HE LEARNED JOINT COMMISSIONER OF INCOME-TAX APPEARING FOR THE REVENUE. 4. THE CONTROVERSY ON THIS ISSUE OF DEDUCTION UNDER SEC.80HHC ORIGINATED FROM THE TAXATION LAW AND (AME NDMENT) ACT) 2005 BY WHICH THIRD AND FOURTH PROVISOS TO SE C.80HHC(3) WERE INSERTED IN THE STATUTE BOOK. ONCE THE AMEND MENT WAS BROUGHT THE DISPUTE AROSE AND THE RETROSPECTIVE AM ENDMENT WAS CHALLENGED. THE ASSESSEES AS A WHOLE ARGUED BEFORE THE - - ITA 2155 & 2156/14 3 COURT THAT THE BENEFIT OF DEDUCTION UNDER SEC.80HHC SHOULD BE AVAILABLE TO THEM UPTO THE ASSESSMENT YEAR 2004-05. FINALLY CONSOLIDATING ALL THE WRIT PETITIONS FILED AGAINST THIS ISSUE THE HONBLE GUJARAT HIGH COURT HELD IN THE CASE OF AVAN I EXPORTS & OTHERS V. CIT RAJKOT & ORS. IN SPECIAL CIVIL APPLIC ATION NO.7926 OF 2006 DATED 2.7.2012 THAT THE OPERATION OF THE A MENDMENT WOULD BE EFFECTIVE FROM THE DATE OF AMENDMENT AND T HERE IS NO RETROSPECTIVE APPLICATION. THE COURT MADE IT CLEAR THAT THE RETROSPECTIVE AMENDMENT SHOULD NOT BE DETRIMENTAL T O ANY OF THE ASSESSEES BEFORE THE COURT. 5. RESPECTFULLY FOLLOWING THE ABOVE JUDGMENT OF THE HONBLE GUJARAT HIGH COURT WE FIND THAT THE CLAIM OF THE A SSESSEE HAS TO BE ACCEPTED BY THE ASSESSING OFFICER SUBJECT TO OTH ER CONDITIONS AND MODALITIES OF QUANTIFYING THE DEDUCTION AVAILAB LE UNDER SEC.80HHC. 6. IN RESULT THESE TWO APPEALS FILED BY THE ASSESS EE ARE ALLOWED. - - ITA 2155 & 2156/14 4 ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON THURSDAY THE 13 TH OF NOVEMBER 2014 AT CHENNAI. SD/- SD/- ( $ % ) ( &' . . . ( (VIKAS AWASTHY) (DR. O.K.NARAYANAN) ) *% /JUDICIAL MEMBER + - /VICE-PRESIDENT .) /CHENNAI /* /DATED THE 13 TH NOVEMBER 2014. MPO* *0 1$2$ /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. 3( /CIT(A) 4. 3 /CIT 5. $45 6 /DR 6. 5&7 /GF.