MAFATLAL INDUSTRIES LTD, MUMBAI V. DCIT CIR 9(2), MUMBAI

ITA 1045/MUM/2015

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 8449 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2017
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 20-02-2017
• Assessment Year: 2003-2004
• Appeal Filed On: 18-02-2015
• Court: TRIBUNAL
• Department Lawyers: SUMAN KUMAR
• Assessee Lawyers: K K VED
• Keywords: Rectification of order
• Section: 143(3); 80HHC; 234B; 115JB; 246; 154; 2

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE SHRI D . T . GARASIA, JM AND SHRI MANOJ KUMAR AGGARWAL, AM I.T.A. NO S .1045/MUM/2015 & 1046/MUM/2015 ASSESSMENT YEAR: 2003 - 04 & 2004 - 05 MAFATLAL INDUSTRIES LTD. AS SUCCESSOR TO MAFATLAL DENIM LTD KALENDONIA OFFICE NO.3, 6 TH FLOOR, SAHAR RD, ANDHERI(E) MUMBAI - 400069 VS. DCIT CIR 9(2) AAYAKAR BHAVAN, M.K. MARG MUMBAI - 400020 PAN: AAACM2813L (APPELLANT) : (RESPONDENT) APPELLANT BY : SHRI K.K. VED RESPONDENT BY : SHRI SUMAN KUMAR (DR) DATE OF HEARING : 20 /02/2017 DATE OF PRONOUNCEMENT : 20 /02/2017 O R D E R PER D. T. GARASIA, JM : THESE APPEALS FILED BY THE ASSESSEE ON FOLLOWING GROUNDS: 1. DISMISSING THE APPEAL BY HOLDING THAT NO APPEALABLE ISSUE AROSE FROM THE IMPUGNED ORDER. 2. EXCLUSIVE OF ENTIRE DEPB INCOME OF RS. 8,85,36,943/ - WHILE COMPUTING PROFITS ELIGIBLE FOR DEDUCTION U/S 80HHC. 2 MUFATLAL INDUSTRIES LTD. ITA NO. 1045 & 1046/MUM/2015 2 3. RESTRICTING DEDUCTION U/S 80HHC TO 50% OF THE ELIGIBLE PROFITS (WHILE COMPUTIN G BOOKS PROFITS U/S. 115JB OF THE INCOME TAX ACT, 1961. 4. CREDIT FOR TAX DEDUCTED AT SOURCE. 5. CREDIT FOR TAX PAID ON REGULAR ASSESSMENT ON 31 ST MARCH 2006. 6. CREDIT FOR TAX PAID ON REGULAR ASSESSMENT DURING THE PERIOD DECEMBER 2010 TO 31 ST JULY 2011. 7. COMPUTA TION OF INTEREST U/S 234B OF THE INCOME TAX ACT, 1961. 8. COMPUTATION OF INTEREST U/S 234C OF THE INCOME TAX ACT, 1961. 9. LEVY OF INTEREST U/S 220(2) OF THE INCOME TAX ACT, 1961. 10. NON - GRANTING OF INTEREST U/S 244A. THE SHORT FACTS OF THE CASE ARE AS UNDER: 3. IN BOTH THESE CASES THE ASSESSEE HAS FILED THE RECTIFICATION APPLICATION U/S 154 OF THE INCOME TAX ACT. IN THE INSTANT CASE THE ORDER U/S 143(3) WAS PASSED ON 10/03/2008 TAKING THE TOTAL INCOME U/S 115JB OF THE ACT OF RS.18,47,77,621/ - AND THEREBY RAISING THE DEMAND OF RS. 1 ,6 7 ,9 0 , 252/ - . THE COMPANY HAS SUBMITTED THE TOTAL INCOME U/S 115JB OF THE ACT HAS BEEN COMPUTED IN EXCESS BY RS.2,21,78,262/ - . FOR CALCULATING ELIGIBLE PROFIT S FOR DEDUCTION UNDER 80HHC THE EXPORT INCENTIVE S WAS TAKEN AT RS. 8,85,36,943 / - IN SUPPORT OF RS. 6,63,58,681/ - BEING PROPORTIONATE AMOUNT AS RETURN BY THE ASSESSEE VERIFICATION OF THE RECORD. THE ASSESSING OFFICER FOUND THAT THE MISTAKE IS APPARENT FROM RECORD S THEREFORE, HE RECTIFIED ORDER U/S 154 OF THE IT ACT , 1961 . THEREAFTER, MATTER WENT TO CIT(A) AND CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE. THEREFORE, THE ASSESSEE IS IN APPEAL BEFORE US. 3 MUFATLAL INDUSTRIES LTD. ITA NO. 1045 & 1046/MUM/2015 3 4. THE LD. AR SUBMITTED THAT SIMILAR ISSUE IN THE CASE OF THE ASSESSEE AND THE TRIBUNAL IN THE ASSESSEES OWN CASE IN ITA NO. 6635/M UM/2013 HAS DECIDED THE APPEAL IN FAVOUR OF THE ASSESSEE AND THE MATTER WAS RESTORED TO CIT(A) HOLDING THAT THE APPEAL IS MAINTAINABLE UNDER CLAUSE (C) SECTION 246 OF THE IT ACT. THEREFORE, THIS APPEAL MAY BE ALSO RESTORED TO CIT(A) AS PER THE DIRECTION HA S GIVEN IN THAT TRIBUNAL ORDER. THE LD. DR HAD NO OBJECTION. 5. WE HAVE HEARD THE RIVAL CONTENTION OF BOTH THE PARTIES WE FIND THAT IN ASSESSEES OWN CASE FOR AY 2002 - 03 THE CIT(A) HAS DISMISSED THE APPEAL ON THE GROUND THAT APPEAL WAS NOT MAINTAINABLE BU T THE TRIBUNAL HAS HELD THAT THE APPEAL IS MAINTAINABLE THEREFORE WE RESPECTIVELY FOLLOWING THE SAME WE ALLOW THE APPEAL AND RESTORED TO THE FILE OF CIT(A). THE TRIBUNAL IN ITA NO. 6635/MUM/2013 HAS HELD AS UNDER: FROM THE ABOVE, IT IS EVIDENT THAT THE TRIBUNAL FOR COMING TO THE SAID CONCLUSIONS, RELIED ON THE JUDGMENT OF THE HON'BLE JURISDICTIONAL HIGH COURT JUDGMENT IN THE CASE OF CALTEX OIL REFINING INDIA (LTD) VS. CIT [1993] 202 ITR 375. ON PERUSAL OF THE SAID J UDGMENT, IT IS THE FINDING OF THE JURISDICTIONAL HIGH COURT THAT THE ORDERS GIVING EFFECT TO THE DIRECTIONS OF THE APPELLATE ORDERS ARE MAINTAINABLE UNDER CLAUSE (C) TO SECTION 246 OF THE ACT. THE SAID JUDGMENT IS APPLICABLE FOR THE AYS 1970 - 71 AND 1972 - 73 UNDER THE OLD PROVISIONS WHICH IS PARA MATERIA TO SECTION 246 OF THE ACT. CONSIDERING THE ORDER OF THE CIT (A) ON THE ISSUE OF MAINTAINABILITY OF APPEAL NEEDS TO BE REVERSED. CONSEQUENTLY, WE REMAND THIS ISSUE TO THE FILE OF THE CIT(A) WITH A DIRECTION TO ADMIT THE APPEAL AND ADJUDICATE THE ISSUES RAISED BY THE ASSESSEE ON MERITS MENTIONED IN GROUND NOS. 2 TO 12, IF ANY. FOR THIS, CIT (A) MAY CALL FOR REMAND REPORT, IF ANY, FROM 4 MUFATLAL INDUSTRIES LTD. ITA NO. 1045 & 1046/MUM/2015 4 THE AO IN ACCORDANCE WITH THE PROVISIONS OF THE ACT. ACCORDINGLY, ALL THE GROU NDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 6. WE RESPECTIVELY FOLLOWING THE SAME WE ALLOW THE APPEAL AS PER THE ABOVE DIRECTION. 7. JUDGEM ENT PRONOUNCED IN THE OPEN COURT ON 20 TH FEBRUARY 2017 SD/ - SD/ - (MANOJ KUMAR AGGARWAL) ACCOUNTANT MEMBER (D.T. GARASIA) JUDICIAL MEMBER MUMBAI, DATE: 20 TH FEBRUARY, 2017 *RAHUL SHARMA* COPY TO: 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT(A) CONCERNED 4) THE CIT CONCERNED 5) THE D.R, B BENCH, MUMBAI 6) GUARD FILE BY ORDER DY./ASSTT. REGISTRAR I.T.A.T, MUMBAI