Allowed

M/S. Gdjd Exports v. the Income Tax Officer

Madras HC21 Mar 2024WP/2490/2007

Case brief

AI extract

What is this about?

The Madras High Court allowed a writ petition seeking declaration that Sections 28 and 80HHC of the Taxation Laws (Amendment) Act 2005, which deny income tax deduction for profits on DEPB sale to large exporters, are ultra vires the Constitution, relying on the Supreme Court's judgment in Commissioner of Income Tax-5 v. Avani Exports.

What did the court decide?

The writ petition was allowed in terms of the judgment of the Apex Court in Commissioner of Income Tax-5 v. Avani Exports, (2016) 16 SCC 741. M.P.No.1 of 2007 is closed.

M/S. Gdjd Exports Vs the Income Tax Officer — Income Tax | Madras HC (2024)

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W.P.No.2490 of 2007

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 21.03.2024

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CORAM :

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THE HON'BLE MR.SANJAY V.GANGAPURWALA, CHIEF JUSTICE AND

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THE HON'BLE MR.JUSTICE D.BHARATHA CHAKRAVARTHY

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W.P.No.2490 of 2007

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M/s.GDJD Exports, No.3, Nowroji Road, Krishnormi, Chetput, Chennai-600 031 rep. by its Partner Bharatkumar K. Shah.

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.. Petitioner

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1.The Income Tax Officer, Business Ward XV (4), 121, Nungambakkam High Road, Chennai-600 034.

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2.The Union of India, rep. by the Secretary to Government, Ministry of Finance, Department of Revenue, Central Secretariat, North Block, Government of India, New Delhi-110 001. .. Respondents

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Prayer: Petition filed under Article 226 of the Constitution of India seeking issuance of a writ of declaration declaring the provisions of Sections 28 and 80HHC by the Taxation Law (Amendment) Act 2005 ultra vires and violative of Articles 14, 19(1)(g), 246(1), 265 and 301 of the Constitution of India in so far as it seeks to deny the deduction

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___________ Page 1 of 5_

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https://www.mhc.tn.gov.in/judis

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W.P.No.2490 of 2007

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u/s 80 HHC in respect of profit on sale of DEPB in case of exporter having export turnover exceeding Rs.10 crores.

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For the Petitioner : Ms.Mallika Srinivasan For the Respondents : Mr.ANR Jayaprathap Standing Counsel for respondent No.1 : Mr.A.Kumaraguru Sr. Panel Counsel for respondent No.2

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ORDER

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(Order of the court was made by the Hon'ble Chief Justice)

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We have heard Ms.Mallika Srinivasan, learned counsel for the petitioner; Mr.ANR Jayaprathap, learned Standing Counsel for respondent No.1; and, Mr.A.Kumaraguru, learned Senior Panel Counsel for respondent No.2.

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The petitioner is seeking declaration that the provision

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under Sections 28 and 80HHC of the Taxation Laws (Amendment)

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Act, 2005 in so far as it seeks to deny the deduction under

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Page 2 of 5

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https://www.mhc.tn.gov.in/judis

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W.P.No.2490 of 2007

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Section 80HHC in respect of profits on sale of DEPB scrips in case of the exporters having export turnover exceeding Rs.10 crore

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with retrospective effect is ultra vires the Constitution of India.

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Learned counsel for the petitioner and learned counsel

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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 .

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In the light of that, the present writ petition is allowed in

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terms of the judgment of the Apex Court in the case of Avani

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Exports , supra. There shall be no order as to costs. Consequently, M.P.No.1 of 2007 is closed.

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(S.V.G., CJ.) (D.B.C., J.) 21.03.2024 Index : Yes/No Neutral Citation : Yes/No bbr

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Page 3 of 5

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https://www.mhc.tn.gov.in/judis

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W.P.No.2490 of 2007

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1.The Income Tax Officer, Business Ward XV (4), 121, Nungambakkam High Road, Chennai-600 034.

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2.The Secretary to Government, Union of India, Ministry of Finance, Department of Revenue, Central Secretariat, North Block, Government of India, New Delhi-110 001.

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Page 4 of 5

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https://www.mhc.tn.gov.in/judis

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W.P.No.2490 of 2007

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THE HON'BLE CHIEF JUSTICE AND D.BHARATHA CHAKRAVARTHY,J.

bbr

W.P.No.2490 of 2007

21.03.2024

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https://www.mhc.tn.gov.in/judis

M/S. Gdjd Exports v. the Income Tax Officer

Case brief

What is this about?

What did the court decide?

M/S. Gdjd Exports v. the Income Tax Officer

Case brief

What is this about?

What did the court decide?

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