The Mumbai bench of Income Tax Appellate Tribunal (ITAT) held that Income Tax benefit under section 80HHC Income Tax Act 1961 in respect of advance import license as covered under section 28(iiib) of the Income Tax Act 1961.
Section 80HHC provides that if an assessee is an Indian company or person of resident India they engaged in export business outside India of any goods, for computing total income of assessee, deduction will be available as per sub section 1B of these Act.
Section 28(iiib) of Income Tax Act 1961 provides that cash assistance received by a person against exports under any scheme of the government of India.
Assessee M/s Wyeth Ltd is engaged in the business of manufacture of pharmaceuticals, bulk drugs and chemicals. The assessee has filed the return of income along with disclosing a total income .After the scrutiny assessment Assessing officer passed an order. Against the order the assessee filed an appeal before Commissioner Of Income Tax Appeal CIT(A). The appeal was allowed by the CIT (A) but against the order of the CIT (A), the revenue has filed an appeal before the ITAT.
Vishal Karla, counsel for assessee, relied on the decision in the assessee own case point out that export incentive is not a part of the profits of the business under section 80HHC (1) Income Tax Act 1961, but it is entitled for the benefit it of the proviso to section 80HHC (3) Income Tax Act 1961.
Tejinder Pal Singh Anand counsel for the revenue submitted that the CIT(A) erred in directing the assessing officer to grant the provision of Sec. 80HHC of the Income Tax Act 1961 in respect of grant of advance import license covered under clause (iiib) of the Sec. 28 of the Income Tax Act 1961.
After considering the contentions of the both parties the division bench of ITAT comprising Pavan Kumar Gadale, (Judicial Member) and Prashant Maharishi (Accountant Member) dismissed the appeal filed by the revenue and upheld the decision of CIT (A).
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