Law: Income Tax Act, 1961

Section: 80-HHC

Income-tax-----Special deductions ---Assessee exporter of garments---Bringing export proceeds into India---Time-limit of six months---Application for extension of time under S.80-HHC(2)--- Cannot be rejected on ground that application not made before expiry of time stipulated---Indian Income Tax Act, 1961, S.80-HHC. The assessee was an exporter of garments. For the assessment year 1991-92 in respect of which the previous year ended on March 31, 1991, the assessee filed on November 26, 1991, an application seeking extension of time under section 80-HHC(2)(a) of the Income Tax Act, 1961, up to December 31, 1991, for bringing foreign exchange into India in respect of exports it had made. As the Commissioner of Income-tax was of the view that there was no provision for extension of time in a case where the application was moved after the period of six months from the end of the previous year, he rejected the application. On a writ petition: Held, allowing the petition, that under section 80-HHC of the Act, the assessee is required to bring into India sale proceeds of goods in convertible foreign exchange within a period of six months from the end of the previous year or within such further period as the Commissioner may permit. The statutory period of six months had expired on September 30, 1991, when the assessee moved the application on November 26, 1991, for extension of time. The application made by the assessee for extension of time after the expiry of the period of six months from the end of the previous year was maintainable and so the Commissioner of Income-tax was not justified rejecting the application. CIT v. Ajanta Electricals (1995) 215 ITR 114 (SC) rel. Assam Frontier Veneer and Saw Mills v. CIT (1976) 104 ITR 479 (Gauhati); CIT v. S.P. Viz Construction Co. (1987) 165 ITR 732 (Pat.); Sunderdas Thackersay & Bros. v. CIT (1982) 137 ITR 646 (Cal.) and Venkata Krishnaiah (T.) & Co. v. CIT (1974) 93 ITR 297 (AP) ref. JUDGMENT ANIL DEV SINGH, J. ---Learned counsel for the petitioner submits that the matter can be-disposed of in the light of the decision of the Supreme Court in CIT v. Ajanta Electricals (1995) 215 ITR 114. The petitioner is an…

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