D.K. Seth, J. - (1.) IN this case, a very short but interesting question emerges. We both at the Bar and the Bench have not been able to lay our hands on any authority answering the question raised herein.
(2.) SECTION 80HHC(1) of the Income-tax Act (hereinafter referred to as "the Act"), entitles an assessee resident in India, engaged in the business of export of specified goods or merchandise, to a deduction of the profits derived out of such export in computing the total income. Sub-section (2)(a) of the same section provides a condition to such entitlement in respect of goods or merchandise other than those specified in Clause (b) to the extent that the sale proceeds thereof are "received in, or brought into, India by the assessee . . . within a period of six months from the end of the previous year". But the said restriction is not absolute, i.e., where the Chief Commissioner or Commissioner is satisfied that the assessee was unable to do so within the said period of six months, for reasons beyond his control, he may allow further period. In the present case, admittedly, the assessee, a company, resident in India, engaged in the business of export, having exported such specified merchandise, was unable to receive in or bring into India the sale proceeds thereof within the said period of six months. Accordingly, the assessee claimed deduction in its return submitted on December 31, 1992, in respect of the assessment year 1991-92 ending on March 31, 1992, on account of export made by it on March 21, 1992. The assessee has sought to take the benefit of the discretion vested in the Chief Commissioner or Commissioner for allowing further period on the ground that the assessee was unable to receive in or bring into India the sale proceeds within the said period of six months and had made an application to the Commissioner of Income-tax on December 28, 1992. The said application was turned down by the Commissioner of Income-tax by an order dated September 13, 1993, which is annexure "I" to the writ petition on the ground that since the assessee did not apply before the expiry of six months, therefore, there was no scope for exercising the discretion in allowing a further period as contemplated in the said section.
(3.) NOW, a simple and short question emerges ; (a) Whether Section 80HHC(2)(a) contemplates the making of an application for claiming deduction ? (b) If so, whether such application is to be made before the expiry of the said period of six months ? Both learned counsel, Mr. S.P. Gupta, Advocate-General, appearing for the petitioner, and Mr. Misra, appearing for the Department, had made elaborate and erudite arguments. The facts are not disputed in the present case. In order to answer the question, we fall back on the expression used in Section 80HHC(2)(a) as quoted below : " (2). (a) This section applies to all goods or merchandise, other than those specified in Clause (b), if the sale proceeds of such goods or merchandise exported out of India are received in, or brought into, India by the assessee (other than the supporting manufacturer) in convertible foreign exchange, within a period of six months from the end of the previous year or, where the Chief Commissioner or Commissioner is satisfied (for reasons to be recorded in writing) that the assessee is, for reasons beyond his control, unable to do so within the said period of six months, or within such further period as the Chief Commissioner or Commissioner may allow in this behalf." Unlike various other sections including Section 11(2) and Section 12A, the present section does not specify the making of any application or any time limit for making such application nor any rules or forms therefor have been prescribed. The Income-tax Act is a complete code in itself and has laid down the method, manner and time for making applications wherever required for which appropriate rules have been framed and forms have been prescribed. Chapter VI-A entitles an assessee to claim various deductions as contemplated in Section 80C to Section 80U. Such deduction is to be claimed in the return to be filed in respect of the concerned assessment year. NOWhere in the Act, has any manner or method or procedure for claiming deduction other than the manner as indicated in Chapter VI-A been provided? The manner of claiming deduction is indicated in Form No. 2 appended to the Income-tax Rules, being a form for submitting return. The said Form, in item "G", requires the assessee to give the statement of the total income wherein a column in item No. 5 is provided for "less : Deductions under Chapter VI-A 'wherever admissible' with the instruction ..." a report under Section 80HHC,... certificate referred to in Section 80HHC, "wherever applicable", has been provided along with a space or column "specifying deductions to be claimed". Therefore, looking into the provisions of various sections of the Act to which our attention was drawn by both learned counsel, it appears to us that Section 80HHC(2)(a) does not specify any manner or procedure for claiming deduction. For the purposes of claiming deductions under the provisions of Sections 80C to Section 80U other than Section 80HHC, no manner, procedure for making application or time limit for such application has been prescribed. Such deductions are to be claimed in the return itself. Therefore, Section 80HHC cannot claim special treatment other than the rest of the Sections 80C to 80U.;