2002 (9) TMI 86

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....said Act"). Facts: For the assessment year 1995-96, the assessee returned its net taxable income, after claiming deduction under section 80HHC, at Rs. 5,500. However, that was not the full deduction. The chartered accountants of the assessee did not include the receivable export incentives of Rs. 2,45,000 on two export bills dated May 26, 1994, and January 7, 1995, as the assessee failed to receive the export earnings during the assessment year 1995-96. The incentives were given to the assessee in the form of R.E.P. licences. These licences were sold on January 18, 1996, and, therefore, the petitioner received export incentives of Rs. 2,45,000 only during the assessment year 1996-97 and not in the assessment year 1995-96. However, the....

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....ver, in the meantime, on March 1, 1999, the rectification application filed by the petitioner under section 154 of the Act came to be rejected. Being aggrieved, the petitioner filed a revision application under section 264 of the Income-tax Act before respondent No. 1. In this rectification application, the petitioner sought relief under section 80HHC on the ground that the export incentive of Rs. 2,45,000 had direct nexus with the export income for the assessment year 1995-96. The claim was supported by the fresh audited accounts correcting the mistake for the assessment year 1995-96. By the impugned order, respondent No. 1 has dismissed the revision application on October 19, 2000. Therefore, this writ petition. Reasons: The main is....

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....5-96. The assessee received the incentives during the subsequent assessment year 1996-97. However, during the assessment year 1996-97, the assessee did not effect any export sales. Therefore, for the assessment year 1996-97, the assessee could not have claimed the deduction because, there were no export earnings during that year. The assessee could have claimed deduction under section 80HHC only during the earlier assessment year, i.e., 1995-96. It is submitted by the department that the revision was not maintainable because, the assessee had opted for appeal before the Commissioner of Income-tax (Appeals) for the assessment year 1996-97. This submission has no merit. The petitioner did claim relief for the assessment year 1996-97 on the gr....