9911796707
TMI Blog1995 (4) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... the writ petition and also to direct the said authority to pass fresh orders in accordance with law. It also seeks staying the assessment proceedings for the assessment year 1991-92. According to the case set up in the writ petition, the petitioner is a 100 per cent. export-oriented unit and is a private limited company dealing in the manufacture and export of leather goods. For the assessment year 1991-92, the petitioner made an application for extension of time on December 27, 1991, under section 80HHC(2)(a) of the Income-tax Act, 1961, before the Commissioner of Income-tax. The total export shown by the petitioner was Rs. 1,50,71,347 out of which the export bills worth of Rs. 62,98,893 remained outstanding on March 31, 1991. A further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rer) in convertible foreign exchange, within a period of six months from the end of the previous year or, where the Chief Commissioner or Commissioner is satisfied (for reasons to be recorded in writing) that the assessee is, for reasons beyond his control, unable to do so within the said period of six months, within such further period as the Chief Commissioner or Commissioner may allow in this behalf. " The petitioner's case is one which falls under sub-section (2)(a). The only question raised is whether the petitioner is entitled to be allowed in computing the total income, a deduction out of the profit from the export of such goods or merchandise if the sale proceeds are received beyond six months on the facts and circumstances of thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be challenged for scrutiny in these proceedings like that of an appellate court. But the satisfaction or non-satisfaction recorded must disclose reasons for judicial scrutiny whether there is application of mind or not or there is any omission to consider material facts on record or the satisfaction recorded is arbitrary or not. Under this clause, reasons to be recorded are for recording his satisfaction but would inherently also apply while rejecting such claim of an assessee. This exercise of power being quasijudicial in nature has to stand up to the test of scrutiny of a higher authority of court howsoever limited it may be. We find from the very first application moved by the petitioner dated December 27, 1991, annexure-1 to the wri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeds. Whether this, would constitute a satisfaction is another matter. But we find the finding recorded by the Commissioner that the delay beyond six months has to be established by the assessee for justifiable reasons and this having been done in this case, is a finding without proper application of mind. It is for the Commissioner to record his reasons howsoever short before disbelieving the said reason to show application of mind. In the impugned order no reason has been disclosed nor any indication of application of mind on the facts as pleaded by the assessee. We find that the Commissioner in rejecting the claim has not recorded any reason nor indicated the application of mind on the facts pleaded. It has to be kept in mind this provis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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