2015 (8) TMI 55 - HC - Income Tax

Gains out of cancellation of contracts - whether were income from export business and eligible for deduction u/s. 80HHC? - Held that - Tribunal right in holding that the Gains out of cancellation of contracts were income from export business and eligible for deduction u/s. 80HHC. See Commissioner of Incometax-I vs. Friends and Friends Shipping Pvt. Ltd. 2013 (5) TMI 458 - GUJARAT HIGH COURT and Commissioner of Income Tax V. Mitsu Limited 2014 (4) TMI 168 - GUJARAT HIGH COURT CIT v. Badridas Gauridu (P) Ltd. 2003 (1) TMI 61 - BOMBAY High Court and CIT v. Soorajmull Nagarmull (1980 (9) TMI 69 - CALCUTTA High Court) with Commissioner of Income Tax-II vs. Panchmahal Steel Ltd. 2013 (5) TMI 686 - GUJARAT HIGH COURT - Decided in favour of assessee.

Summary

Issues:
Interpretation of section 80HHC for gains from cancellation of contracts.

Analysis:
The High Court considered the substantial question of law framed in the appeal regarding gains from cancellation of contracts and their eligibility for deduction under section 80HHC. The Court noted that similar issues had been considered in previous cases, including Commissioner of Incometax-I vs. Friends and Friends Shipping Pvt. Ltd. and Commissioner of Income Tax V. Mitsu Limited. The Court followed the decisions of CIT v. Badridas Gauridu and CIT v. Soorajmull Nagarmull, as well as the order in Commissioner of Income Tax-II vs. Panchmahal Steel Ltd. The Court found that the question in the present appeal was already covered by the previous decisions.

The Court concluded that the order passed by the Appellate Tribunal did not require any interference. Therefore, the substantial question of law was decided against the revenue and in favor of the assessee. As a result, the Court dismissed the present appeal without any order as to costs.