M/s. Mittal Creations, Bangalore V. DCIT, Bangalore

ITA 1017/BANG/2008

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 0616 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2009
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2004-2005
• Appeal Filed On: 23-07-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: JACINTA ZIMIK VASHAI
• Assessee Lawyers: V SRINIVASAN
• Section: 143(3); 80HHC; 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI GEORGE GEORGE K., JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.1017/BANG/2008 ASSESSMENT YEAR : 2004-05 M/S. MITTAL CREATIONS, 5, F-2, 1 ST PHASE, PEENYA INDUSTRIAL AREA, JALAHALLLI WEST, S.M. ROAD, BANGALORE 560 068. : APPELLANT VS. THE DY. COMMISSIONER OF INCOME-TAX, CIRCLE 6(1), BANGALORE. : RESPONDENT APPELLANT BY : SHRI V. SRINIVASAN RESPONDENT BY : SMT. JACINTA ZIMIK VASHAI O R D E R PER GEORGE GEORGE K., JUDICIAL MEMBER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE CIT(APPEALS) DATED 13.6.2008. THE ASSESSMENT YEAR CONCERNED IS 2004- 05. 2. THE SOLITARY ISSUE THAT IS RAISED IN THIS APPEAL IS WHETHER ASSESSING OFFICER IS JUSTIFIED IN COMPUTING DEDUCTION U/S. 80 HHC BY REDUCING THE EXTENT OF DEDUCTION ALLOWED TO THE ASSESSEE U/S. 80 IB OF THE ACT. ITA NO.1017/B/08 PAGE 2 OF 3 3. BRIEFLY STATED THE FACTS ARE AS FOLLOWS. THE AS SESSEE IS A FIRM. IT IS IN THE BUSINESS OF MANUFACTURE, TRADING AND EXPORT OF GARMENTS. FOR THE CONCERNED ASSESSMENT YEAR, THE ASSESSEE FILED RETUR N OF INCOME ON 1.11.04 DECLARING A TOTAL INCOME OF RS.26,56,260. THE ASSESSMENT WAS COMPLETED U/S. 143(3) VIDE ORDER DATED 11.12.2006 W HEREIN THE TOTAL INCOME WAS FIXED AT RS.48,86,429. WHILE COMPLETING THE ASSESSMENT THE ASSESSING OFFICER COMPUTED THE DEDUCTION ALLOWABLE U/S. 80HHC BY REDUCING TO THE EXTENT OF DEDUCTION ALLOWED TO THE ASSESSEE U/S. 80IB OF THE ACT. BEING AGGRIEVED BY SAID ACTION OF THE ASSESSI NG OFFICER, THE ASSESSEE FILED FURTHER APPEAL TO THE CIT(APPEALS). THE LD. CIT(APPEALS) DISMISSED THE APPEAL OF THE ASSESSEE BY HOLDING THUS: 3.3 THE AR WAS HEARD. THE HONBLE ITAT, BANGALORE - BENCH-B [TRIBUNAL], IN THE CASE OF NAGEL SPECIAL MA CHINES PVT. LTD, IN THE ORDER DT: 26-11-07 [ISSUED UNDER ITA.NO.894/BANG/06:AY:03-04], FOLLOWING THE DECISIO N OF ITAT, (SPECIAL BENCH), CHENNAI, IN THE CASE OF M/S- ROGINI GARMENTS [294 ITR 15 (AT)], HAVE HELD THAT THE DEDU CTION IN QUESTION IS TO BE COMPUTED FROM THE BUSINESS-PROFIT S AFTER REDUCING THE AMOUNT OF DEDUCTION ALLOWABLE U/S-80IB OF THE ACT. IN DECIDING SO, THE HONBLE TRIBUNAL HAS ALSO REFER RED TO THE PROVISIONS OF THE SEC-80IA(9) OF THE ACT AND OBSERV ED THE SAME AS SO RESTRICTIVE. 3.4 THUS, REFERRING TO THE PROVISIONS OF THE SEC-80 IA(9) AND RESPECTFULLY APPLYING THE RATIO OF THE DECISION IN THE CASE OF NAGEL MACHINES..[SUPRA] I, HEREBY, UPHOLD THE AOS ACTION . ACCORDINGLY, THIS EFFECTIVE GROUND OF APPEAL IS DIS MISSED. 4. THE ASSESSEE BEING AGGRIEVED IS IN APPEAL BEFORE US. THE LD. AR OF THE ASSESSEE FAIRLY CONCEDED THAT THIS ISSUE STANDS COVERED AGAINST THE ASSESSEE BY THE DECISION OF THE SPECIAL BENCH IN TH E CASE OF ACIT V. HINDUSTAN MINT & AGRO PRODUCTS (P) LTD. [119 ITD 10 7 ( DELHI)(SB)]. ITA NO.1017/B/08 PAGE 3 OF 3 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE ISSUE IN QUESTION IS SQUARELY COVERED BY THE DECISION CITED SUPRA WHEREIN IT HAS BEEN CLEARLY HELD THAT DEDUCTION TO BE ALLOWED UNDER ANY OTHER PROVISION OF CHAPTER VI-A WITH THE HEADIN G C, (WHICH INCLUDES SECTIONS 80H, 80HHC, ETC.) IS TO BE REDUCED BY AN A MOUNT OF DEDUCTION ALLOWED UNDER SECTION 80-IA/80-IB. IN LIGHT OF TH E ABOVE WE FIND THE ORDER OF THE LD. CIT(APPEALS) IS CORRECT AND IN ACCORDANC E WITH LAW. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS 9 TH DAY OF OCTOBER, 2009. SD/- SD/- (A. MOHAN ALANKAMONY ) ( GEORGE GEORGE K.) ACCOUNTANT MEMBER JUDICIAL MEMBE R BANGALORE, DATED, THE 9 TH OCTOBER, 2009. DS/- COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE (1+1) BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE.