IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR WEDNESDAY, THE 27TH FEBRUARY 2008 / 8TH PHALGUNA 1929 ITA.No. 73 of 2002() -------------------- ITA.267/COCH/1996 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT: -------------------------- THE COMMISSIONER OF INCOME TAX,COCHIN BY ADV. SRI.P.K.R.MENON(SR.),SR.COUNSEL FOR IT SRI.GEORGE K. GEORGE, SC FOR IT RESPONDENTS: RESPONDENT ----------------------- M/S.BABY MARINE EXPORTS,KALLUVILA, THANGASSERY,KOLLAM BY ADV. SRI.C.KOCHUNNY NAIR SRI.DALE P.KURIEN THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ALONG WITH ITA NO.75/2002 ON 27/02/2008, THE COURT ON 27/02/2008 DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & T.R.RAMACHANDRAN NAIR, JJ. .................................................................... I.T. Appeal Nos.73 and 75 of 2002 .................................................................... Dated this the 27th day of February, 2008. JUDGMENT C.N.Ramachandran Nair, J. Various questions raised in the department's appeals pertain to deduction claimed by the assessee under Section 80HHC of the Income Tax Act. Exemption from export profits includes exports made by the assessee through Export House. We find from the Tribunal's order that the Tribunal has allowed the case based on their decision in M/S.JANATHA CASHEW EXPORTING COMPANY's case(ITA No.201(Coch)/1996). Even though this decision is reversed by this court, the Supreme Court set aside the judgment of the High Court and remanded the matter back to the Assessing Officer for considering the claim based on the disclaimer certificate to be produced by the assessee. We feel the matter requires reconsideration by the Assessing Officer based on decision of the Supreme Court in JANATHA CASHEW EXPORTING CO. V. COMMISSIONER OF INCOME TAX (214 CTR 11(SC) (2008)). Similarly, department's case for reckoning loss in the computation of export profit was decided by the Tribunal based on their decision in A.M.MOOSA's case(Sri.A.M.Moosa vs. 2 Asst. CIT in ITA No.498(Coch)/1995), which decision of the Tribunal was reversed by the High Court and confirmed by the Supreme Court in A.M.MOOSA V. COMMISSIONER OF INCOME TAX (294 ITR 1(SC) (2007)). In view of this subsequent decision of the Supreme Court, we set aside the order of the Tribunal and restore the matter to the Assessing Officer for recomputation of benefit under Section 80HHC in terms of the two decisions of the Supreme Court. The assessee should also be heard before orders are passed against the assessee. C.N.RAMACHANDRAN NAIR Judge T.R.RAMACHANDRAN NAIR Judge pms