JCIT (OSD), Ludhiana V. M/s Deepak Fasteners Ltd., Ludhiana

ITA 102/CHANDI/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2310 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 2 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 21-12-2015
• Assessment Year: 2002-2003
• Appeal Filed On: 27-01-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N K SAINI
• Assessee Lawyers: VINOD GOYAL SHRI K J SHAL LY
• Section: 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE SHRI T.R. SOOD, A.M AND MS. SUSHMA CHOWLA, J M ITAS NO. 102 & 103/CHD/2012 ASSESSMENT YEAR : 2002-03 & 2003-04 J.C.I.T. (OSD) CIRCLE 1 V DEEPAK FASTENERS LTD LUDHIANA E-536, FP, LUDHIANA AAACD 6282 G (APPELLANT) (RESPONDENT) APPELLANT BY SHRI N.K. SAINI RESPONDENT BY: SHRI VINOD GOYAL FOR SHRI K.J. SHAL LY DATE OF HEARING 11.4.2013 DATE OF PRONOUNCEMENT 16.4.2013 O R D E R PER T.R.SOOD, A.M THESE APPEALS ARE DIRECTED AGAINST THE ORDER PASSED BY THE LD. CIT(A), LUDHIANA DATED 24.11.2011. 2. IN BOTH THESE APPEALS THE REVENUE HAS RAISED THE FOLLOWING IDENTICAL GROUNDS: 1 THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON THE FACTS IN TREATING THE NOTICE ISSUED U/S 143(2) INVALID WH EREAS THE ASSESSING OFFICER HAS RIGHTLY ISSUED THE SAME A S THE HON'BLE ITAT HAD RESTORED THE MATTER TO THE FILE OF ASSESSING OFFICER WITH THE DIRECTION TO ALLOW REASO NABLE OPPORTUNITY TO THE ASSESSEE TO PRESENT THEIR VERSI ON OF THE ELIGIBLE DEDUCTION U/S 80HHC AND PASS FRESH ORD ER ACCORDINGLY . 2 THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON THE FACTS IN DELETING THE ADDITION WITHOUT GOING THROUGH THE FACTS OF THE CASE REGARDING ALLOWABILITY OF DEDUCTION U/S 80 HHC ON MERITS. 3 THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON THE F ACTS IN NOT APPRECIATING THE FINDINGS OF THE ASSESSING O FFICER REGARDING ALLOWABILITY OF DEDUCTION U/S 80HHC WHO A PPLIED 2 THE RATIO LAID DOWN BY THE HON'BLE BOMBAY HIGH COUR T IN THE CASE OF M/S KALPTARU COLOURS AND CHEMICALS REPO RTED AT 328 ITR 451 WHICH WAS APPROVED BY THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT V. F.C . SONDHI & CO.(P) LTD., JALANDHAR IN ITA NO. 299 OF 2 010. 3. AN ADJOURNMENT APPLICATION DATED NIL WAS MOVED O N BEHALF OF THE ASSESSEE WHICH WAS REJECTED BY US BEC AUSE THE ISSUE RAISED IN THESE APPEALS WAS FOUND TO BE COVER ED BY THE DECISION OF HON'BLE SUPREME COURT. 4. THE LD. DR FOR THE REVENUE WAS HEARD. 5. AFTER CONSIDERING THE SUBMISSIONS OF THE LD. DR FOR THE REVENUE AND THE RELEVANT MATERIAL ON RECORD, WE FIN D THAT THE ISSUE PERTAINS TO DEDUCTION U/S 80HHC IN RESPECT OF SALE PROCEEDS OF DEPB. ORIGINALLY WHEN THE ISSUE TRAVEL ED BEFORE THE TRIBUNAL, THE TRIBUNAL SET ASIDE THE MATTER BAC K TO THE FILE OF ASSESSING OFFICER IN VIEW OF THE DECISION OF SPE CIAL BENCH OF THE TRIBUNAL IN CASE OF TOPMAN EXPORTS V ITO IN ITA NO. 5769/M/2006. HOWEVER, LATER ON THIS DECISION WAS R EVERSED BY THE HON'BLE BOMAY HIGH COURT IN CASE OF M/S KALPTAR U COLOURS AND CHEMICALS V CIT IN ITA NO. 5851/M/2006 AND THER EFORE, THE ASSESSING OFFICER DID NOT GRANT ANY RELIEF. WH EN THE MATTER TRAVELED TO THE LD. CIT(A), SOME OTHER CONTROVERSIE S WERE ALSO RAISED. THE LD. CIT(A) ALLOWED THE RELIEF ON THE B ASIS THAT SINCE THE APPEALS OF THE ASSESSEE WERE PENDING BEFO RE HON'BLE PUNJAB & HARYANA HIGH COURT AND THEREFORE, NO PROC EEDINGS WERE PENDING BEFORE THE ASSESSING OFFICER AND HE CO ULD NOT GIVE APPEAL EFFECT IN SUCH CIRCUMSTANCES. HOWEVER, IT IS ADMITTED THAT THE ISSUE PERTAINS ONLY TO THE DEDUCT ION U/S 80HHC IN RESPECT OF DEPB LICENSE SALE PROCEEDS. T HIS ISSUE 3 HAS BEEN FINALLY DECIDED BY HON'BLE SUPREME COURT I N CASE OF TOPMAN EXPORTS V CIT, 67 DTR 81 WHERE IN THE DECISI ON OF SPECIAL BENCH OF THE TRIBUNAL IN CASE OF TOPMAN EXP ORTS (SUPRA) HAS BEEN CONFIRMED. THEREFORE, WE SET ASID E THE ORDER OF LD. CIT(A) AND REMIT THE MATTER BACK TO THE FILE OF ASSESSING OFFICER WITH A DIRECTION TO DECIDE THE ISSUE IN LIG HT OF THE DECISION OF HON'BLE SUPREME COURT IN CASE OF TOPMAN EXPORTS (SUPRA). 6. IN THE RESULT, APPEALS OF THE REVENUE ARE ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 16 .4.2013 SD/- SD/- (SUSHMA CHOWLA) (T.R. SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 16 .4.2013 SURESH COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT/THE C IT(A)/THE DR