ACIT CEN CIR 17 &28, MUMBAI V. J.B. BODA & CO. P. LTD, MUMBAI

ITA 1065/MUM/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 7802 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 1990-1991
• Appeal Filed On: 10-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: INDRA G ANAND
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, I, MUMBAI BEFORE SHRI R V EASWAR, PRESIDENT AND SHRI T R SOOD, ACCOUNTANT MEMBER I T A NO: 1065/MUM/2010 (ASSESSMENT YEAR: 1990-91) ASSISTANT COMMISSIONER OF INCOME TAX APPELLANT CENTRAL CIRCLE 17 & 28, MUMBAI VS M/S J B BODA & CO. PVT. LTD., MUMBAI RESPONDENT (PAN: AAACJ2289F) APPELLANT BY: MR SANJAY KUMAR RESPONDENT BY: MS INDRA G ANAND O R D E R R V EASWAR, PRESIDENT: THE FOLLOWING GROUNDS OF APPEAL HAVE BEEN TAKEN BY THE REVENUE IN THIS APPEAL RELATING TO THE ASSESSMENT Y EAR 1990-91: - A. ON THE FACTS AND IN THE CIRCUMSTANC ES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN EXCLUDING EXPENDITURE U/S. 35(1)(II) AND 80G FROM TOTAL EXPENDITURE WHILE COMPUTING DEDUCTION U/S. 80-O OF THE INCOME TAX ACT. B. ON THE FACTS AND IN THE CIRCUMSTAN CES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN COMING TO THE CONCLUSION THAT THE PAYMENTS MADE TO SCIENTIFIC RESEARCH U/S.35(1)(II) AND DONATION GIVEN U/S. 80G ARE WHOLLY UNCONNECTED WITH EARNING THE INCOME ELIGIBLE FOR DEDUCTION U/S.80-O. 2. THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE B Y THE ORDER OF THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 1989-90, WHICH HAS BEEN FOLLOWED BY THE CIT(A). FO LLOWING THE ORDER, WHICH IS DATED 18.01.2002, IN ITA NO: 6848/B OM/1992, THE CIT(A) HAS HELD THAT THE DEDUCTION CLAIMED UNDER SE CTION 35(1)(II) AND SECTION 80G CANNOT BE CONSIDERED AS EXPENDITURE FOR EARNING ITA NO: 1065/MUM/2010 2 THE INCOME WHICH IS ELIGIBLE FOR THE DEDUCTION UNDE R SECTION 80-O OF THE INCOME TAX ACT, 1961. IN THIS VIEW OF THE MATT ER HE HAS DIRECTED THE ASSESSING OFFICER TO EXCLUDE THE AFORE SAID TWO ITEMS OF EXPENDITURE AND TO APPLY THE PROPORTION TO THE BALA NCE OF EXPENDITURE INCURRED BY THE ASSESSEE IN ORDER TO FI ND OUT THE EXPENSES ATTRIBUTABLE FOR EARNING THE INCOME ELIGIB LE FOR DEDUCTION UNDER SECTION 80-O OF THE ACT. THE ASSESSING OFFIC ER HAS BEEN DIRECTED TO CALCULATE THE DEDUCTION UNDER SECTION 8 0-O ACCORDINGLY. 3. SINCE THE CIT(A) HAS FOLLOWED THE DECISION OF TH E TRIBUNAL IN THE ASSESSEES OWN CASE, THERE IS NO INFIRMITY IN H IS ORDER, WHICH IS HEREBY UPHELD. THE APPEAL OF THE DEPARTMENT IS DIS MISSED WITH NO ORDER AS TO COSTS. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF THE HEARING ON 29 TH MARCH 2011. SD/- SD/- (T R SOOD) (R V EASWAR) ACCOUNTANT MEMBER PRESIDE NT MUMBAI, DATED 29 TH MARCH 2011 SALDANHA COPY TO: 1. M/S J B BODA & CO. PVT. LTD. MAKER BHAVAN NO.1, SIR V T MARG NEW MARINE LINES, MUMBAI 400 020 2. ACIT, CENTRAL CIRCLE 17 & 28, MUMBAI 3. CIT-CENTRAL II, MUMBAI 4. CIT(A)-39, MUMBAI 5. DR I BENCH TRUE COPY BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI