Case Law Details
Case Name : M/s. Indian Del. (P) Ltd. Vs Commissioner of Income Tax (Delhi High Court)
Related Assessment Year :
Courts :
All High Courts Delhi High Court
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INDIAN DEL. (P) LTD. Vs. CIT (DELHI HC)
Hon’ble High Court held that provisions of Section 80-HHC required two conditions to be satisfied before an assessee could claim deduction there under. The two conditions being:-
(i) the goods being export out of India and
(ii) Sale proceeds of goods or merchandise exported out of India are receivable in convertible foreign exchange.
The above conditions are satisfied cumulatively. Here sale made to UNICEF in India would not amount to export of goods. Accordingly the assessee is not entitled to deduction U/s 80-HHC of the Act.
HIGH COURT OF DELHI
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I extend my due respect to the orders passed by the tribunal/authorities. But I would like to opine that there is some provision missing in the Income Tax Act for extending the tax benefit for deemed exports. Having supplied the goods for utilisation within the territory of India and in the other hand by receipt of much needed foreign currency from outside India, the assessee is entitled for double weightage for his performance as an ‘exporter’. Such deemed exporters are entitled for so many benefits entitled for exporters under other policies. Some provision for the benefits under Income Tax Act should also be thought of.