Date:19/02/2005 URL: http://www.thehindubusinessline.com/2005/02/19/stories/2005021901391700.htm

Back Exporters protest denial of 80 HHC benefits

Our Bureau

Mumbai , Feb. 18

MORE than 1,000 exporters protested in front of the Income-Tax Department's offices in Mumbai against the denial of benefits under Section 80 HHC of the Income Tax Act.

According to an All India Exporters' Grievances Forum (AIEGF)press release, 300 exporters were arrested by the Azad Maidan police. They were protesting against the attachment of their accounts.

Exporters from various associations have come under the AIEGF to protest the issue.

Mr Ganesh Gupta, President of AIEGF, was quoted in the release as saying, "If the Income Tax Department is allowed to continue in this manner, lakhs of people will lose their jobs, and the Indian Government will lose more than Rs 30,000 crore of foreign exchange."

"Due to the change in the interpretation of law by the IT Department after six years, exporters have lost confidence in the policies," Mr Sharad Saraf, Chairman, AIEGF, said.

"No exporter will have the profit earned over the past 5 years as back balance. It takes several years to build international business and just one bad transaction to lose it all. Exporters have not been able to concentrate on their business for the last four months," Mr Vishal Jajodia, Convenor, AIEGF said.

The AIEGF has demanded that there cases should be considered on a retrospective basis, the attachment of bank accounts should be stopped and urged the Centre to immediately issue a notification to the Department to stop re-opening cases.