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Issues Involved:
1. Whether section 80HHC(2)(a) contemplates the making of an application for claiming deduction. 2. If so, whether such application is to be made before the expiry of the said period of six months. Summary: Issue 1: Whether section 80HHC(2)(a) contemplates the making of an application for claiming deduction. Section 80HHC(1) of the Income-tax Act entitles an assessee resident in India, engaged in the business of export of specified goods or merchandise, to a deduction of the profits derived from such export in computing the total income. Sub-section (2)(a) provides a condition that the sale proceeds must be "received in, or brought into, India by the assessee... within a period of six months from the end of the previous year." However, this restriction is not absolute, as the Chief Commissioner or Commissioner may allow a further period if satisfied that the assessee was unable to do so within the said period for reasons beyond his control. The court observed that section 80HHC(2)(a) does not specify the making of any application or any time limit for making such an application. The Income-tax Act is a complete code in itself and has laid down the method, manner, and time for making applications wherever required. The manner of claiming deduction is indicated in Form No. 2 appended to the Income-tax Rules, which requires the assessee to give a statement of the total income and specify deductions to be claimed. Therefore, section 80HHC cannot claim special treatment other than the rest of the sections 80C to 80U. Issue 2: If so, whether such application is to be made before the expiry of the said period of six months. The court held that the time limit mentioned in section 80HHC(2)(a) is not a limitation for claiming deduction but a right to claim deduction if the sale proceeds are received within six months. The Legislature provided for suspension or relaxation of the said period subject to the satisfaction of the Chief Commissioner or Commissioner if the assessee was unable to receive or bring into India the sale proceeds for reasons beyond his control. The discretion is confined to the question of satisfaction by the Chief Commissioner or Commissioner, but not with the power to allow the period of suspension or relaxation. If satisfied, the Commissioner is bound to allow the period which remained suspended due to the inability of the assessee to receive or bring into India the sale proceeds for reasons beyond his control. The court concluded that section 80HHC(2)(a) does not contemplate the making of any application by the assessee within a period of six months for availing of the deductibility or for invoking the power of the Chief Commissioner or Commissioner to allow a further period. The deductibility claimed in the return is to be decided in computing the total income, and if the six-month period has expired, it is for the assessing authority to place the same before the Chief Commissioner or Commissioner. The assessee may also bring the fact to the notice of the Chief Commissioner or Commissioner, but no time limit can be applied except that the claim is to be made in the return to be filed. Conclusion: The court set aside the order of the Commissioner dated February 13, 1995, relating to the assessment year 1992-93, and directed the Commissioner to decide the matter afresh in light of the observations made. The interim order of stay of assessment shall continue till the disposal of the application of the petitioner and its communication to the petitioner by the assessing authority. The writ petition was disposed of with no order as to costs.
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