M/s. M.U.A.Arumuga Perumal & Sons, CHENNAI V. ACIT, Virudhunagar

ITA 1/CHNY/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0748 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2013
• Appeal Filed By: Assessee
• Bench Allotted: D
• Next Hearing Date: 26-02-2013
• Assessment Year: 2003-2004
• Appeal Filed On: 02-01-2012
• Court: TRIBUNAL
• Department Lawyers: ANIRUDH RAI
• Assessee Lawyers: A S SRIRAMAN
• Section: 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D B ENCH C HENN AI BEFORE SHRI ABRAHAM P GEORGE, ACCOUNTANT MEMBER AND SHRI S.S.GODARA , JUDICIAL MEMBER .. ITA NO. 01 /MDS./ 20 12 ASSESSMENT YEAR: 200 3 - 04 M/S.M.U.A.ARUMUGA PERUMAL & SONS, POST BOX NO.1, 636 /5,RAJAPALAYAM ROAD, CHATRPATTI, 626 102 VS. THE ASSISTANT COMMISSIONER OF INCOME TAX,CIRCLE I, VIRDHUNAGAR. PAN AABFA 7676 D (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI A.S.SRIRAMAN RESPONDENT BY : SHRI ANIRUDH RAI, CIT DR DATE OF HEARING : 26 . 0 2 .13 DATE OF PRONOUNCEMENT : 26 . 0 2 .13 O R D E R PER ABRAHAM P GEORGE, ACCOUNTANT MEMBER : IN THIS APPEAL FILED BY THE ASSESSEE, IT IS AGGRIEVED AGAINST EXCLU SION OF SALE VALUE OF DEPB LICENSE , WHILE QUANTIFYING ITS ELIGIBLE DEDUCTION UNDER SECTION 80HHC OF THE ACT. ITA . 01 /MDS/ 12 2 2. WHEN THE MATTER CAME UP FOR HEARING, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT ASSESSI NG OFFICER HAD TAKEN ENTIRE RECEIPTS ON SALE OF DEPB LICENSE AS PROFIT AND REDUCED IT, WHILE CALCULATING THE DEDUCTION CLAIMED UNDER SECTION 80HHC OF THE ACT. WHEN THE MATTER REACHED THE TRIBUNAL, IT WAS REMITTED BACK TO THE ASSESSING OFFICER FOR CONSIDERATION AFRESH BASED ON THE SPECIAL BENCH DECISION OF M/S.TOPMA N EXPORTS VS. ITO(OSD) I ( 318 ITR (AT) 8 7 (MUM) ). THEREAFTER, THE ISSUE WAS RE CONSIDERED BY THE A.O . HOWEVER, RELYING ON THE DECISION OF BOMBAY HIGH COURT IN THE CASE OF CIT VS. KALPATARU COLOURS AND CHEMICALS ( 328 ITR 451) , ONCE AGAIN HELD THAT ENTIRE SALE VALUE OF DEPB HAD TO BE REDUCED WHILE WORKING OUT THE DEDUCTION UNDER SECTION 80HHC OF THE ACT. ACCORDING TO HIM, DECISION OF M/S.TOPMAN EXPORTS(SUPRA) STOOD REVERSED BY THE BOMBAY HIGH COURT. THIS VIEW TAKEN BY THE A.O. WAS CONFIRMED BY THE CIT(A) ON ASSESSEE S APPEAL. NOW, AS PER LD. A.R ., THE HON BLE APEX COURT IN THE CASE OF M/S.TOPMAN EXPORTS VS. CIT ( 342 ITR 49) HAD REVERSED THE DECISION OF HON BLE BOMBAY HIGH COURT WHILE LAYING DOWN THE LAW WITH REGARD TO THE TREATMENT OF DEPB FOR THE PURP OSE OF CALCULATING DEDUCTION UNDER SECTION 80HHC OF THE ACT. ITA . 01 /MDS/ 12 3 THEREFORE, ACCORDING TO HIM, THE MATTER REQUIRED A FRESH LOOK BY THE ASSESSING OFFICER . LD. D.R AGREED THAT THE MATTER HAS TO GO BACK TO THE A . O . FOR CONSIDERATION AFRESH. 3. WE HAVE PE RUSED THE ORDERS OF LOWER AUTHORITIES AND HEARD THE CONTENTIONS. HON BLE APEX COURT IN THE CASE OF M/S. TOPMAN EXPORTS VS. CIT (SUPRA) HAS SUCCINCTLY LAID DOWN THE LAW WITH REGARD TO THE DEPB BENEFITS AT THE TIME OF CLAIM, AT THE TIME OF RECEIPT AND AT THE TIME OF SALE. THEIR LORDSHIPS HAVE ALSO GIVE N CLEAR INDICATION AS TO HOW THE PROFIT ON SALE OF DEPB ENTITLEMENT WAS TO BE TREATED WHILE CALCULATING DEDUCTION UNDE R SECTION 80HHC OF THE ACT. THI S DECISION WAS NOT AVAILABLE TO THE LOWER AUTHORITIES, WH EN THEY DISPOSED OF THE CASE OF THE ASSESSEE. WE ARE THEREFORE, OF THE OPINION THAT MATTER REQUIRES A FRESH LOOK BY THE A.O AND REMIT THE ISSUE REGARDING DEDUCTION UNDER SECTION 80HHC OF THE AC T WITH REGARD TO DEPB, BACK TO THE FILE OF THE A.O. FOR CONSID ERATION AFRESH. ACCORDINGLY, APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ITA . 01 /MDS/ 12 4 4 . IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AF TER CONCLUSION OF HEARING ON 26 TH FEB RUARY , 2013 . SD/ - SD/ - (S.S.GODARA) ( ABRAHAM P GEORGE ) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED 26 TH FEBRUARY , 2013 . K S SUNDARAM COPY TO: ASSESSEE / AO / CIT (A) / CIT / D.R. / GUARD FILE ITA . 01 /MDS/ 12 5