MEHRA INTERNATIONAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE petitioner, a partnership firm, has sought by means of the present petition, a writ, order or direction in the nature of certiorari quashing the order dated August 6, 1999, passed by the Commissioner of Income Tax, Kanpur, in so far as it relates to the non -extension of time in respect of the late payment received from Prime Leather Enterprises, USA, for Rs. 77,121 and from M/s. Horseman, USA, for Rs. 1,88,860 and a writ of mandamus commanding the Commissioner of Income Tax to pass a fresh order under Section 80HHC(2)(a) of the Income Tax Act, 1961, in respect of the extension of time for payment received from the aforesaid two persons.

(2.) THE petitioner claims itself an exporter and is doing the export of saddlery leather and brass items to various countries outside India. It, for the assessment year 1997 -98 exported the goods worth Rs. 1,07,80,835. A sum of Rs. 3,53,000 was due as outstanding from three foreign buyers as on March 31, 1997. An application for extension of time as required under Section 80HHC(2)(a) of the Income Tax Act (hereinafter referred to as "the Act") was filed by the petitioner before the Commissioner of Income Tax. The Commissioner of Income Tax by means of the impugned order dated August 6, 1999, has allowed the said application in part. It has granted extension of time for not bringing the sale proceeds of the goods exported by the petitioner to M/s. Andersen, Germany, but has refused to extend the time in respect of the foreign buyers, namely, M/s. Prime Leather Enterprises USA, and M/s. Horseman, USA.

(3.) THE period of six months specified in Section 80HHC(2)(a) of the Act was to expire on September 30, 1997. The petitioner filed an application dated September 30, 1997, before respondent No. 1 on October 31, 1997, requesting for extension of time, for the purposes of Section 80HHC(2)(a) of the Act, of one year for bringing into India, in convertible foreign exchange, the sale proceeds approximately of Rs. 3,53,000 relating to the goods exported by it out of India. The ground taken in the extension application, in brief was that the petitioner has received a major portion of the convertible foreign exchange within time, but approximately a sum of Rs. 3,53,000 could not be recovered from the foreign buyers in spite of its best efforts. It was expected to receive the payments at the earliest. The details of the names of the buyers to whom the assessee exported the goods, invoice number, date and the amount of sale proceeds of the goods exported out of India that were outstanding on September 30, 1997, are as follows :