Case Law Details
Assessing Officer has not made out any case for disallowing even a part of deduction allowable under Section 80IA. Once any condition laid down under Sub Section 10 of Section 80IA are not satisfied that Sub Section cannot be invoked and therefore no disallowance of deduction under that section can be made.(Para 15)
Assessee cannot bind the export house to export the goods within the financial year. Assessee made sale of the goods to the export house at the fag end of the year and thereafter export house is likely to take some time to physically export the same out of India. This latitude is necessary in the interest of fair play and justice and to avoid impossibility of claim of deduction under Section 80HHC either by export house or by the supporting manufacturer in such a situation. It is not the intention of the legislature to create a situation where neither the supporting manufacturer nor the export house is able to claim deduction under Section 80HHC when goods are sold on the last day of the financial year and accordingly physical export out of India is likely to take some time and which would spill over to next financial year. If the export house is able to receive foreign exchange within the time stipulated under Section 80HHC, then requirement for deduction under Section 80HHC are deemed to have been fulfilled for the supporting manufacturer and assessee being supporting manufacturer should be allowed deduction as per law.(Para 19)
Regarding trade discount we are of the considered view that it stands on similar footing as excise duty and sales tax as discount also did not form part of export turnover or total turnover. They, accordingly, should be excluded.(Para 21)
IN THE INCOME TAX APPELLATE TRIBUNAL,
B-BENCH, AHMEDABAD.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
