Court grants benefits under section 80HHC, rejects challenge to Explanation (aa)

The High Court of Rajasthan allowed the writ petitions, granting the assessee benefits under section 80HHC of the Income-tax Act, 1961. The challenge to the vires of Explanation (aa) was withdrawn by the petitioners. The court rejected the prayer challenging the validity of clause (aa) of Explanation 2 to sub-section (4B) of section 80HHC. The court emphasized that the transactions involved customs clearance and sales in convertible foreign exchange, relying on precedent rulings.

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The High Court of Rajasthan allowed the writ petitions, stating that the assessee is entitled to the benefit under section 80HHC of the Income-tax Act, 1961. The challenge to the vires of Explanation (aa) was withdrawn by the petitioners. The court rejected the prayer challenging the validity of clause (aa) of Explanation 2 to sub-section (4B) of section 80HHC. The court noted that the transactions involved customs clearance and sales in convertible foreign exchange. The decision was based on previous court rulings.

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