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IN THE INCOME TAX APPELLATE TRIBUNAL

DELHI BENCH ‘F’, NEW DELHI

Before Sh. Satbeer Singh Godara, Judicial Member

&

Sh. Naveen Chandra, Accountant Member

ITA No. 1229/Del/2006 : Asstt. Year: 1999-00

ITA No. 1228/Del/2006 : Asstt. Year: 2002-03

ACIT, Vs Sheena Industries,

Circle, Ujha Road, Panipat,

Panipat, Haryana Haryana

(APPELLANT) (RESPONDENT)

PAN No.

ITA No. 970/Del/2007 : Asstt. Year: 2003-04

ACIT, Vs Sheena Exports,

Circle, Ujha Road, Panipat,

Panipat, Haryana Haryana

(APPELLANT) (RESPONDENT)

PAN No.

Assessee by : None

Revenue by : Ms. Monika Singh, CIT-DR

Date of Hearing: 03.02.2026 Date of Pronouncement: 03.02.2026

ORDER

Per Satbeer Singh Godara, Judicial Member:

The Revenue has filed it’s identical twin appeals ITA Nos.

1228 & 1229/Del/2006; for assessment years 1999-2000 and

2002-03, in the former assessee M/s Sheena Industries case(s),

against the CIT(A), Karnal’s as many years dated 13 &

14.02.2006; respectively. It’s third appeal ITA No.

970/Del/2007 involving M/s Sheena Exports, in assessment year

2003-04, has arisen against the very CIT(A)’s order dated

2 ITA Nos. 1228 & 1229/Del/2006

Sheena Industries

ITA No. 970/Del/2007

Sheena Exports

18.12.2006 in issue. Relevant proceedings in all these cases are

u/s 143(3).

2. Cases called twice. None appears at the assessee’s behest.

They are accordingly proceeded ex-parte.

3. Learned CIT-DR submits at the outset that all these

Revenue’s three appeals involving twin assessee’s M/s Sheena

Industries and M/s Sheena Exports herein; as the case may be,

raise an identical issue of their respective entitlement(s) to

claim section 80HHC & Section 80IB deductions as “supportive”

manufacturer(s). We are further informed that this is the

second round of proceedings between the parties before the

tribunal in furtherance to the hon’ble apex court recent

landmark decision in CIT Vs. M/s Carpet India (2019) 109

taxmann.com 35 (SC); reading as under:

“1. This batch of appeals arises from a judgment passed

by the High Court of Punjab and Haryana at Chandigarh

in which the Appeals preferred by the Revenue have been

dismissed relying upon CIT, v. Baby Marine Exports

[2007] 160 Taxman 160 (SC) in order to arrive at a

conclusion that the supporting manufacturer is at par

with the actual direct exporter of goods when it comes to

deductions that are available under Section 80HHC of the

Income Tax Act, 1961 (in short 'the Act').

2. It is unnecessary to go into the facts of each of these

cases as it is undisputed that the assessee in each of

these cases is a supporting manufacturer. The scheme

3 ITA Nos. 1228 & 1229/Del/2006

Sheena Industries

ITA No. 970/Del/2007

Sheena Exports

insofar as Section 80HHC of the Act is concerned is

crystal clear. The marginal note to Section 80HHC reads -

Deduction in respect of profits retained for export

business.—

'80HHC. (1) Where an assessee, being an Indian

company or a person (other than a company) resident in

India, is engaged in the business of export out of India

of any goods or merchandise to which this section

applies, there shall, in accordance with and subject to

the provisions of this section, be allowed, in computing

the total income of the assessee, a deduction to the

extent of profits, referred to in sub-section (1B), derived

by the assessee from the export of such goods or

merchandise:

Provided that if the assessee, being a holder of an Export

House Certificate or a Trading House Certificate

(hereafter in this section referred to as an Export House

or a Trading House, as the case may be,) issues a

certificate referred to in clause (b) of sub-section (4A),

that in respect of the amount of the export turnover

specified therein, the deduction under this sub-section is

to be allowed to a supporting manufacturer, then the

amount of deduction in the case of the assessee shall be

reduced by such amount which bears to the total profits

derived by the assessee from the export of trading

goods, the same proportion as the amount of export

turnover specified in the said certificate bears to the

total export turnove