2019 (4) TMI 967 - HC - Income Tax

Revision u/s 263 - examine the claim of the assessees under Section 80HHC as they are Supporting Manufacturers - HELD THAT - This Court in the case of Commissioner of Income Tax Trichirappalli v. M/s.Asian Handlooms Karur 2013 (12) TMI 541 - MADRAS HIGH COURT remanded the cases back to the Assessing Authority to consider the case of the assessees for grant of benefit under Section 80HHC The present appeals filed by the Revenue against the orders of the Tribunal cancelling the orders passed by the learned Commissioner of Income Tax under Section 263 of the Income Tax Act have become infructuous. Therefore we dispose of these appeals without answering the questions as having been rendered infructuous with a liberty to the assessees to raise their claim under Section 80HHC of the Act on merits before the Assessing Authority in accordance with law.

Summary

Issues:
- Appeal against orders passed by the Income Tax Appellate Tribunal canceling orders under Section 263 of the Income Tax Act.
- Interpretation of Section 80HHC of the Income Tax Act.
- Remand of cases to the Assessing Authority for reconsideration of claims under Section 80HHC.

Analysis:
The judgment pertains to appeals challenging the orders of the Income Tax Appellate Tribunal that revoked the orders passed by the Commissioner of Income Tax under Section 263 of the Income Tax Act. The Tribunal had canceled these orders directing the Assessing Authority to examine the claim of the assessees under Section 80HHC of the Act as Supporting Manufacturers. The High Court referred to a previous case where it was held that the assessee's claim under Section 80HHC could not be rejected outright by the Revenue. The Court emphasized the need for the Assessing Officer to determine the value of incentives received by the assessee as a supporting Manufacturer from the export house. Consequently, the present appeals were deemed infructuous as the matters had been remitted to the Assessing Officer for further consideration.

Furthermore, the High Court reiterated its stance on the interpretation of Section 80HHC in a subsequent case involving the same assessee. The Court emphasized the importance of allowing the assessees to raise their claims under Section 80HHC before the Assessing Authority on merits in accordance with the law. As a result, the appeals were disposed of as infructuous with the liberty granted to the assessees to present their claims under Section 80HHC before the Assessing Authority for proper evaluation.

In conclusion, the High Court's judgment underscores the significance of a thorough examination of claims under Section 80HHC of the Income Tax Act, emphasizing the need for proper assessment by the Assessing Authority. The decision highlights the procedural aspect of remanding cases for reconsideration and upholding the rights of assessees to present their claims in accordance with the law.