2011 (11) TMI 738 - HC - Income Tax

High Court upholds ITAT decision on Section 80HHC deduction appeal, emphasizing legal precedents and interpretations.

The High Court dismissed the appeal challenging the Income Tax Appellate Tribunal's decision regarding a deduction claimed under Section 80HHC of the ... - Issues involved: Appeal filed u/s 260A of the Income Tax Act challenging the order passed by the Income Tax Appellate Tribunal u/s 271(1)(c) of the Act regarding deduction claimed u/s 80HHC.Summary:The appellant claimed a deduction under Section 80HHC of the Income Tax Act but was found to have made a false claim and furnished incorrect particulars. The tribunal had previously decided against the appellant on a similar issue in an earlier assessment year. However, the appellant argued that the decision was made after the filing of the return for the current assessment year. The High Court had admitted an appeal related to the computation of deduction under Section 80HHC in a separate case, citing relevant precedents.The appellant, an individual engaged in exports, had disclosed total turnover and domestic turnover. The appellant was also involved in trading shares through another sole proprietorship but did not include this turnover in the deduction calculation under Section 80HHC. The assessing officer rejected this approach, leading to the tribunal's decision against the appellant. The tribunal, considering the explanation provided by the appellant, deleted the penalty citing the possibility of different views on the legal issue. The tribunal's decision was based on the Supreme Court's ruling in CIT Vs. Reliance Petro Products (P) Ltd. regarding the imposition of penalties.After reviewing the facts and the tribunal's order, the High Court found no reason to interfere with the impugned order and dismissed the appeal.