| Case ID |
2d221641-5254-4db3-a9c8-325920f78dc2 |
| Body |
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| Case Number |
ITA No.1479/Kol./2002 |
| Decision Date |
Feb 26, 2004 |
| Hearing Date |
|
| Decision |
The court held that EIH Ltd.'s transactions involving food and beverages supplied to international airlines constituted an export out of India for the purpose of deduction under section 80HHC of the Income-tax Act, 1961. The court noted that the payments made in Indian rupees by foreign airlines were treated as convertible foreign exchange by the Reserve Bank of India, thereby fulfilling the conditions for claiming the deduction. The earlier disallowance by the Assessing Officer and the Commissioner (Appeals) was overturned, directing that the claim for deduction under section 80HHC be considered on merit. The judgment emphasized the interpretation of 'export' in the context of the provisions of the Act and clarified that compliance with the conditions outlined in the law was sufficient for entitlement to the deduction. |
| Summary |
In the landmark case of EIH Ltd. v. Commissioner of Income Tax, Kolkata-III, the Calcutta High Court addressed the crucial issue of whether the sale of food and beverages to international airlines constituted an export under the Income-tax Act, 1961. The case revolved around the applicability of section 80HHC, which provides deductions for profits from exports. EIH Ltd. claimed deductions amounting to a substantial sum based on its transactions involving sealed containers of food supplied to international flights. The Assessing Officer initially disallowed these claims, asserting that the sales did not qualify as exports since payments were received in Indian rupees. However, the High Court found that the Reserve Bank of India recognized these transactions as convertible foreign exchange, validating EIH Ltd.'s position. The court's ruling underscores the importance of proper interpretation of export definitions within tax law, particularly in relation to international transactions. The decision is significant for exporters seeking to maximize tax benefits under section 80HHC of the Income-tax Act, reinforcing the notion that compliance with specific conditions is key to eligibility for deductions. This case sets a precedent for future interpretations of export-related tax provisions, making it a landmark ruling in the realm of taxation law. |
| Court |
Calcutta High Court
|
| Entities Involved |
EIH Ltd.,
Commissioner of Income Tax, Kolkata-III
|
| Judges |
Bhaskar Bhattacharya,
Sambuddha Chakrabarti
|
| Lawyers |
R.N. Bajoria,
Anirban Ghosh,
D.K. Shome,
R.K. Choudhury
|
| Petitioners |
EIH Ltd.
|
| Respondents |
Commissioner of Income Tax, Kolkata-III
|
| Citations |
2011 SLD 2887 = (2011) 338 ITR 503
|
| Other Citations |
CIT v. Rajendra Kasliwal [2003] 133 Taxman 67 /[2004] 271 ITR 448 (Raj.),
Marble Men v. CIT [2005] 272 ITR 81/ 142 Taxman 357 (All.),
CIT v. Silver & Arts Palace [2003] 259 ITR 684/ 129 Taxman 56 (SC),
Indian Hotels Co. Ltd. v. Dy.CIT [2004] 86 TTJ (Mum.) 195,
Burmah Shell Oil Storage & Distributing Co. of India Ltd. Standard Vaccum Oil Co. v. CTO AIR 1961 SC 315,
Ram Babu & Sons v. Union of India [1996]222 ITR 606 (All.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
80HHC
|