9. Orient Crafts Limited Vs. Commissioner of Income Tax, New Delhi
Civil Appeal Nos. 143-144 of 2013, 139-140 of 2013, 141-142 of 2013 and 137-138 of 2013 decided on 18.09.2026
Revision by the Commissioner – Section 263 – The view taken on all the relevant issues by the Commissioner was available and tenable – Revision upheld
Export – Special deduction – Section 80HHC - The export quota premium receipt must be reduced by 90% under Explanation (baa) to Section 80HHC, as other receipts are not eligible, and that the Assessee is not entitled to a proportionate adjustment under the proviso to Section 80HHC(iii) of the Act, 1961
CBDT Circulars – Binding nature – Circulars contrary to statutory provisions have no existence in law and cannot prevail over judicial interpretation in pending matters before courts
The Assessee filed a Return on 31.10.2001 for AY 2001-02, declaring income of ₹3,97,22,789/-. The Assessee claimed a deduction under Section 80HHC of the Act, 1961, amounting to ₹13,85,68,402/-. The audited Report under Section 80HHC(4) of the Act, 1961, filed by the Assessee, stated that the Assessee received ₹73,49,341/- as premium on the sale of export quota