आयकर अपीलीय अिधकरण, राजकोट (cid:586)ायपीठ, राजकोट।

IN THE INCOME TAX APPELLATE TRIBUNAL, “SMC”

RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER आयकरअपील सं /ITA No. 56/RJT/2020 िनधा१रण वष१/Assessment Year : 2004-05 M/s. Jayshri Exports (India) बनाम/ The Deputy Commissioner of Dhoraji Road, Navagadh, Vs Income-tax Circle-1, Rajkot Jetpur, Gujarat - 360370 (cid:725)ायीलेखासं./जीआइआर सं./PAN/GIR No.: AABFJ8267B (अपीलाथ५/Assessee) (ঋ(cid:529)थ५/Respondent)

िनधा१ौरती की ओर से/Assessee by : Shri Chetan Agarwal, Ld. AR राज(cid:738)की ओर से / Revenue by : Shri Abhimanyu Singh Yadav, Ld. Sr. DR सुनवाई की तारीख /Date of Hearing : 17/09/2025 घोषणा की तारीख /Date of Pronouncement : 25/11/2025 आदेश/ORDER Per, Dr. Arjun Lal Saini, A.M:

Captioned appeal filed by the assessee, pertaining to Assessment Year 2004-

05, is directed against the order passed under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by Commissioner of Income-tax (Appeals) (‘CIT(A)’), dated 30.07.2019, which in turn arises out of an assessment order passed by the Assessing Officer u/s. 143(3) of the Act on 27.12.2006.

2. The grounds of appeal raised by the assessee are as follows:

“(1) The Ld.CIT(A) erred in law and on facts in limiting u/s.80HHC to the extent of Rs.2,17,759/- against the claim of deduction of Rs.25,90,947/-.

(2) On the facts and circumstances of the case it is contended that the claim ought to be allowed as per the return of income.

(3) The grounds on the basis of which the deduction u/s.80HHC has been scaled down are factually incorrect and not in accordance with law and the Ld.CIT (A) erred in law and on facts in accepting the deduction u/s.80HHC as allowed by the Assessing Officer in assessment order instead of Rs.25,90,947/-, as claimed by the assessee.

(4) Your assessee craves leave to add, alter, amend or withdraw any of the grounds stated here above.”

3. The facts of the case which can be stated quite shortly are as follows: The return of income was filed by the assessee, under consideration, on 01.11.2004, declaring NIL income claiming deductions u/s. 80HHC of the I.T. Act at Rs. 25,90,947/- and u/s. 80IB at Rs. 1,81,465/-. The return of income so filed by the assessee, was accompanied with Audit Report in Form No. 3CB, 3CD, 10CCB & 10CCAC. The return of income was processed u/s 143(1) of the I.T. Act on 27.01.2005, without any modification. The notice u/s. 143(2) of the I.T. Act dated 07.02.2005, was issued and served upon the assessee by RPAD. The notices u/s 143(2) and 142(1) of the Act, along with a questionnaire, all dated 05.05.2006 were also issued and served upon the assessee on 12.05.2006. In response to said notices, Authorised Representative of the assessee attended from time to time and furnished the details called for. The assessing officer noted that the assessee has claimed deduction u/s. 80HHC at Rs. 25,90,947/-. The claim for deduction u/s 80HHC of the I.T. Act has been verified, by the assessing officer, vis-à-vis with the amended provisions of Section 80HHC, as amended by the Taxation Laws (Amendment) Act, 2005 with retrospective effect. On verification of working of Trading & Profit & Loss Account, it was noticed by assessing officer that the assessee has made 100% Export sales of Rs. 5,25,19,979/-, during the year under consideration and has earned net profit of Rs. 25,90,947/-. The claim of the deduction u/s 80HHC has been verified in view of the amended provisions of Section 28 and Section 80HHC of the I.T. Act. It was noticed by the assessing officer that the assessee's case is covered under the 2nd proviso to Sub-section (3) of Section 80HHC of the I.T. Act which is applicable to the assessees having export turnover not exceeding rupees Ten Crores during the previous year. The assessing officer noticed that assessee has worked out the deduction u/s. 80HHC in the Audit Report in Form No. 10CCAC, which requires to be revised in view of the amended provisions with effect from 01.04.1998