Income-tax Act, 1961 : Deduction under section 80HHC of the Income-tax Act, 1961 - Income Tax - F. No. 178/32/2002-ITA-I

Income-tax Act, 1961 : Deduction under section 80HHC of the Income-tax Act, 1961 F. No. 178/32/2002-ITA-I dated 12th April 2005 To, All the Chief Commissioners/Directors General of Income-tax Madam/Sir, It has been brought to the notice of the Board that the claim for deduction under section 80HHC of the Income-tax Act, 1961 in respect of profits from sale of DEPB scrips is not being allowed to the exporters. The Board is seized of the matter and the same is under examination. 2. In exercise of the powers conferred under section 119 of the Income-tax Act the Central Board of Direct Taxes hereby directs Assessing Officers to keep in abeyance till 30th June, 2005, all assessment and recovery proceedings relating to assessments reopened specifically to reassess the claim for deduction under section 80HHC. However, notices under section 148 may be issued wherever necessary but all other proceedings following the issue of such notices should be kept in abeyance. 3. Further, it is clarified that where a case is getting barred by limitation at any time on or before 30th June, 2005, the directions contained in para. 2 above, shall not be applicable. However, recovery proceedings in such cases should be kept in abeyance till 30th June, 2005. 4. This may please be brought to the notice of all the officers working in your region.