2013 (6) TMI 335 - HC - Income Tax

Deduction u/ 80HHC - Export of Marble Blocks, which are cut and polished. - Held that - present appeal is fully covered by decision of the Division Bench of this Court in Commissioner of Income Tax, Udaipur vs. M/s. Arihant Tiles & Marbles Pvt. Ltd. 2013 (6) TMI 45 - RAJASTHAN HIGH COURT - ssessee is entitled to deduction under Section 80HHC - Decided in favor of assessee.

Summary

Issues:
- Dispute over deduction under Section 80HHC of the Income Tax Act for export of marble blocks, cut and polished, for Assessment Years 2003-04 and 2004-05.

Analysis:
1. The appeal was admitted based on the substantial question of law regarding the Income Tax Appellate Tribunal's contradictory views for the same assessee in different assessment years. The Tribunal allowed deduction under Section 80HHC for the export of marble blocks in 2003-04 but denied it for 2004-05. The Department challenged the 2003-04 decision, but the High Court upheld the deduction in a previous case.

2. The respondent argued that the matter should be remanded to the Assessing Officer based on the Tribunal's remand in a previous case. However, the Court found that the facts were the same, and remitting the matter for re-examination would serve no purpose since the issue had already been decided by the High Court.

3. The Court highlighted that there was no dispute regarding the export of marble blocks in both assessment years. The Tribunal's decision in the 2003-04 case was upheld by the High Court, stating that the assessee was entitled to the deduction under Section 80HHC. The Court emphasized that since the facts and questions of law were the same in the present appeal, it was covered by the previous decision.

4. Referring to a previous judgment, the Court reiterated that the Tribunal was justified in allowing the deduction for export of marble blocks in the relevant years. The Court dismissed the Revenue's appeals, answering the substantial questions of law in favor of the assessee. Consequently, the present appeal was allowed, setting aside the Tribunal's order and ruling in favor of the assessee for the deduction under Section 80HHC.

5. The Court directed the parties to bear their own costs and disposed of the stay application. The judgment affirmed the assessee's entitlement to the deduction under Section 80HHC for the export of marble blocks, aligning with the previous decision in a related case.