2004 (11) TMI 33 - HC - Income Tax

Exemption on export profits claimed under section 80HHC - isclaimer certificate in Form No. 10CCAB - appellant never produced the disclaimer certificate - It is a mandatory requirement of section 80HHC(4A) that a disclaimer certificate in Form No. 10CCAB should be filed along with return and the object of the said provision is to prevent the export houses as well as supporting manufacturers from claiming exemption on the profit of the very same export turnover appeal of assessee dismissed

Summary

Issues:
Exemption on export profits claimed under section 80HHC of the Income-tax Act, 1961.

Analysis:
The appellant exported marine products through export houses and claimed exemption under section 80HHC of the Income-tax Act. The exemption was disallowed for the year 1990-91 during the return processing under section 143(1)(a) of the Act. The contention was that the assessment involving disallowance should not be made under section 143(1)(a) of the Act. The assessee argued that even if they were ineligible for the claim, as eligibility for exemption is debatable, it does not warrant prima facie adjustments under the said section. However, the standing counsel for the respondents pointed out that the claim was made without producing the disclaimer certificate in Form No. 10CCAB prescribed under the rules in terms of section 80HHC(4A) of the Income-tax Act. The appellant claimed the benefit as direct exports, but without the required audit report in Form No. 10CCAC filed along with the return, which was later submitted before the completion of assessment. The court noted a previous decision where it was held that the audit report in Form No. 10CCAB can be filed before completion of assessment even if not submitted along with the return. However, in this case, the appellant admitted in the returns that the exports were through export houses, and without the disclaimer certificate under Form No. 10CCAB, the claim could not be considered or allowed. The mandatory requirement of filing a disclaimer certificate was emphasized to prevent export houses and supporting manufacturers from claiming exemption on the same export turnover. The court concluded that without the required certificate, the appellant's claim could not be allowed, and the appeal was dismissed.