COMMISSIONER OF INCOME TAX Vs. UNITED MARINE EXPORTS

JUDGEMENT

(1.) Whether the export premium received by a supporting manufacturer from an export house would fall under the expression "brokerage, commission charges or any other receipts of similar nature" contemplated under Sub-clause (i) of clause (baa) of Explanation to Section 80HHC(4A) of the IT Act, 1961 is the question that has come up for consideration in these cases.

(2.) IT Appeal No. 140 of 2001 arises out of the order passed in ITA No. 152/Coch/1999 dt. 30th March, 2001 by the Tribunal, Cochin Bench. IT Appeal No. 62 of 2001 arises out of the order passed in ITA No. 183/Coch/2000 dt. 7th Dec., 2000 and IT Appeal No. 320 of 2002 arises out of the order passed in ITA No. 233/Coch/1996. Common issues arise for consideration in all these cases and hence we are disposing of the same by a common judgment.

(3.) Assessee in IT Appeal No. 140 of 2001 claimed deduction under Section 80HHC(3A) of the IT Act at the assessment stage and the AO excluded 90 per cent of the export house premium from the business profits on the ground that export house premium has nothing to do with the exports effected by the assessee. Aggrieved by the said order assessee preferred appeal before the CIT(A). CIT(A) rejected the claim of the assessee on the ground that the premium received was a local receipt. AO after obtaining clarification from the CIT(A) passed an order giving effect to the appellate order. That order is dt. 10th March, 1999 and the order was served on the assessee on 22nd March, 1999. Assessee, took up the matter in appeal before the Tribunal with a petition for condonation of delay. Claim of the assessee was allowed by the Tribunal holding that the export premium cannot be excluded from the business profits under cl. (baa) of Explanation to Section 80HHC. Reliance was placed on the order of the Tribunal in the case of M/s United Marine Exports in ITA No. 183/Coch/2000 dt. 7th Dec., 2000 against which Department has filed IT Appeal No. 62 of 2001. CIT has preferred IT Appeal No. 140 of 2001 aggrieved by the order passed by the Tribunal in ITA No. 152/Coch/1999 dt. 30th March, 2001.