2003 (3) TMI 78 - HC - Income Tax

At the outset learned counsel for the petitioners has withdrawn the challenge to the vires of Explanation (aa) added to sub-section (4B) of section 80HHC of the Income-tax Act 1961. He simply prayed that the petitioners are entitled for the benefit of section 80HHC of the Act. - As learned counsel for the petitioners has not pressed the ground challenging the validity of clause (aa) of Explanation 2 to sub-section (4B) of sec tion 80HHC of the Act the same prayer is rejected. - There is no dispute between the parties that the transactions of counter sales effected by the petitioners involved customs clearance within the meaning of Explanation (aa) to section 80HHC(4B) of the Act and further that the sales were in convertible foreign exchange. - In the result we are of the view that the assessee is entitled for the benefit under section 80HHC of the Income-tax Act 1961.

Summary

The High Court of Rajasthan allowed the writ petitions, stating that the assessee is entitled to the benefit under section 80HHC of the Income-tax Act, 1961. The challenge to the vires of Explanation (aa) was withdrawn by the petitioners. The court rejected the prayer challenging the validity of clause (aa) of Explanation 2 to sub-section (4B) of section 80HHC. The court noted that the transactions involved customs clearance and sales in convertible foreign exchange. The decision was based on previous court rulings.