Madras High Court
M/S.Kader Exports Pvt. Ltd vs The Union Of India on 21 March, 2024
Author: D.Bharatha Chakravarthy
Bench: Sanjay V.Gangapurwala, D.Bharatha Chakravarthy
W.P.Nos.13356 of 2007 and 48633 of 2006
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 21.03.2024
CORAM :
THE HON'BLE MR.SANJAY V.GANGAPURWALA, CHIEF JUSTICE
AND
THE HON'BLE MR.JUSTICE D.BHARATHA CHAKRAVARTHY
W.P.Nos.13356 of 2007 and 48633 of 2006
W.P.No.13356 of 2007:
M/s.Kader Exports Pvt. Ltd.,
Having Administrative Office at
3/284, Muttukadu Road,
Neelankarai, Chennai-600 041. .. Petitioner
vs
1.The Union of India,
rep. by the Secretary,
Ministry of Finance,
Department of Revenue,
New Delhi.
2.The Commissioner of Income Tax,
Central Circle-I,
Old CGO Building, Annexe, M.K.Marg,
Mumbai-400 020.
3.The Assistant Commissioner of Income Tax,
Central Circle 5,
Old CGO Building, Annexe, M.K.Marg,
Mumbai-400 020. .. Respondents
__________
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W.P.Nos.13356 of 2007 and 48633 of 2006
W.P.No.48633 of 2006:
V.S.Exim Private Ltd.,
B-401, Raheja Regency,
R.A.Puram,
Chennai-600 028. .. Petitioner
vs
1.The Union of India,
rep. by the Secretary,
Ministry of Finance,
Department of Revenue,
New Delhi.
2.The Chief Commissioner of Income Tax,
121, Uttamar Gandhi Salai,
Chennai-600 0034.
3.The Commissioner of Income Tax,
Company Circle,
121, Uttamar Gandhi Salai,
Chennai-600 0034.
4.The Assistant Commissioner of Income Tax,
Company Circle III(4),
121, Uttamar Gandhi Salai,
Chennai-600 0034. .. Respondents
Prayer in W.P.No.13356 of 2007 : Petition filed under Article 226 of the
Constitution of India seeking issuance of a writ of declaration declaring
that provision under Section 3 and 4 of the Taxation Laws
(Amendment) Act, 2005, in so far as it seeks to deny the deduction
under Section 80HHC in respect of profits on sale of DEPB scrips in
case of the exporters having export turnover exceeding Rs.10 crores
with retrospective effect, as ultra vires the Constitution of India.
__________
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W.P.Nos.13356 of 2007 and 48633 of 2006
Prayer in W.P.No.48633 of 2006 : Petition filed under Article 226 of the
Constitution of India seeking issuance of a writ of declaration declaring
that provision under Section 3 and 4 of the Taxation Laws
(Amendment) Act, 2005, in so far as it seeks to deny the deduction
under Section 80HHC in respect of profits on sale of DEPB scrips in
case of the exporters having export turnover exceeding Rs.10 crores
with retrospective effect, as ultra vires Articles 14, 19(1), 246(1), 265
and 301 of the Constitution of India and therefore unenforceable and
of no effect in so far as the petitioners herein are concerned.
For the Petitioners : Mr.T.Ramesh
For the Respondents : Mr.A.Kumaraguru
Sr. Panel Counsel
for respondent No.1
in both WPs
: Mr.ANR Jayaprathap
Jr. Standing Counsel
for respondents 2 and 3
in W.P.No.13356 of 2007
and respondents 2 to 4
in W.P.No.48633 of 2006
COMMON ORDER
(Order of the court was made by the Hon'ble Chief Justice) We have heard Mr.T.Ramesh, learned counsel for the petitioners; Mr.A.Kumaraguru, learned Senior Panel Counsel for the first respondent in both the writ petitions; and, Mr.ANR __________ Page 3 of 7 https://www.mhc.tn.gov.in/judis W.P.Nos.13356 of 2007 and 48633 of 2006 Jayaprathap, learned Junior Standing Counsel for respondents 2 and 3 in W.P.No13356 of 2007 and respondents 2 to 4 in W.P.No.48633 of 2006.
2. The petitioners are seeking declaration that the provision under Section 3 and 4 of the Taxation Laws (Amendment) Act, 2005 in so far as it seeks to deny the deduction under Section 80HHC in respect of profits on sale of DEPB scrips in case of the exporters having export turnover exceeding Rs.10 crore with retrospective effect is ultra vires the Constitution of India.
3. Learned counsel for the petitioners and learned counsel for the Department are ad idem that the issue is no longer res integra and the same has been decided by the Apex Court in the case of Commissioner of Income Tax-5 and another v. Avani Exports and another, (2016) 16 SCC 741.
4. In the light of that, the writ petitions are allowed in terms __________ Page 4 of 7 https://www.mhc.tn.gov.in/judis W.P.Nos.13356 of 2007 and 48633 of 2006 of the judgment of the Apex Court in the case of Avani Exports, supra. There shall be no order as to costs. Consequently, M.P.Nos.1 of 2006 and 1 of 2007 are closed.
(S.V.G., CJ.) (D.B.C., J.)
21.03.2024
Index : Yes/No
Neutral Citation : Yes/No
bbr
To
1.The Secretary,
Union of India, Ministry of Finance, Department of Revenue, New Delhi.
2.The Commissioner of Income Tax, Central Circle-I, Old CGO Building, Annexe, M.K.Marg, Mumbai-400 020.
3.The Assistant Commissioner of Income Tax, Central Circle 5, Old CGO Building, Annexe, M.K.Marg, Mumbai-400 020.
4.The Chief Commissioner of Income Tax, 121, Uttamar Gandhi Salai, Chennai-600 0034.
5.The Commissioner of Income Tax, Company Circle, 121, Uttamar Gandhi Salai, Chennai-600 0034.
6.The Assistant Commissioner of Income Tax, Company Circle III(4), 121, Uttamar Gandhi Salai, __________ Page 5 of 7 https://www.mhc.tn.gov.in/judis W.P.Nos.13356 of 2007 and 48633 of 2006 Chennai-600 0034.
__________ Page 6 of 7 https://www.mhc.tn.gov.in/judis W.P.Nos.13356 of 2007 and 48633 of 2006 THE HON'BLE CHIEF JUSTICE AND D.BHARATHA CHAKRAVARTHY,J.
bbr W.P.Nos.13356 of 2007 and 48633 of 2006 21.03.2024 __________ Page 7 of 7 https://www.mhc.tn.gov.in/judis