The DCIT,(OSD)Range-1, Ahmedabad V. M/s. Claris Lifesciences Limited, Ahmedabad

ITA 1102/AHD/2007

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 1861 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 21-12-2009
• Assessment Year: 2002-2003
• Appeal Filed On: 14-03-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MATHIRAMAN
• Assessee Lawyers: S N SOPARKAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI, JM AND A. N. PAHUJA, AM) ITA NO.1102/AHD/2007 A. Y. 2002-03 THE D. C. I. T. , RANGE-1, 3 TH FLOOR, JITENDRA CHAMBERS, NR. NEW RBI LANE, ASHRAM ROAD, AHMEDABAD VS CLARIS LIFESCIENCES LTD., CORPORATE TOWERS, NR. PARIMAL RLY CROSSING, ELLISBRIDGE, AHMEDABAD 380006 PA NO. AAACC 6366 Q (APPELLANT) (RESPONDENT) APPELLANT BY SHRI MATHIRAMAN, DR RESPONDENT BY SHRI SN SOPARKAR, AR O R D E R PER BHAVNESH SAINI: THIS DEPARTMENTAL APPEAL IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-VII, AHMEDABAD DATE D 13-12-2006 FOR THE ASSESSMENT YEAR 2002-03 ON THE FOLLOWING GROUND: 1) THE CIT(A) ERRED IN LAW AND ON FACTS IN DIRECTI NG TO EXCLUDE EXCISE DUTY OF RS.1,52,43,990/- FROM THE TO TAL TURNOVER FOR COMPUTING DEDUCTION U/S 80 HHC OF THE I. T. ACT. 2. THE ASSESSEE CONTENDED BEFORE THE LEARNED CIT(A) THAT EXCISE DUTY AND SALES TAX DO NOT FORM PART OF THE TOTAL TURNOVE R AND RELIED UPON SEVERAL DECISIONS IN SUPPORT OF THE CONTENTION. THE AO HOWEVER, WAS OF THE VIEW THAT AS PER THE DECISION OF THE HONBLE SU PREME COURT IN THE CASE OF CHOWRINGHEE SALES BUREAU PVT. LIMITED VS CIT 87 ITR 542 SALES TAX AND EXCISE DUTY WOULD BE PART OF THE TOTAL TURN OVER. IT WAS SUBMITTED BEFORE THE LEARNED CIT(A) THAT THE ISSUE OF INCLUSI ON OF CENTRAL EXCISE AND SALES TAX IN TOTAL TURNOVER FOR THE PURPOSE OF COMP UTATION OF DEDUCTION U/S 80 HHC OF THE INCOME TAX ACT HAS BEEN RECENTLY DECIDED BY THE ITAT AHMEDABAD BENCH IN SEVERAL CASES IN WHICH THE ASSES SEES CONTENTION IS ITA NO.1102/AHD/2007 CLARIS LIFESCIENCES LTD. 2 UPHELD THAT THE TOTAL TURNOVER FOR THE PURPOSE OF C OMPUTATION OF DEDUCTION U/S HHC OF THE INCOME TAX ACT WOULD REQUI RE TO BE MADE AFTER EXCLUDING SALES TAX AND EXCISE DUTY. THE LEARNED CI T(A) ACCORDINGLY DIRECTED THE AO TO EXCLUDE THE EXCISE DUTY AND SALE S TAX FROM THE TOTAL TURNOVER WHILE COMPUTING DEDUCTION U/S80 HHC OF THE INCOME TAX ACT. 3. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTS ET SUBMITTED THAT NOW THE ISSUE STANDS COVERED IN FAVOUR OF THE ASSES SEE BY THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF CIT VS LAK SHMI MACHINE WORKS 290 ITR 667 (SC) IN WHICH IT WAS HELD THAT EX CISE DUTY AND SALES TAX ARE TO BE DEDUCTED FOR COMPUTING DEDUCTION U/S 80 HHC OF THE ACT. THE LEARNED DR CONCEDED THAT THE ISSUE IS COVERED I N FAVOUR OF THE ASSESSEE BY THE ABOVE JUDGMENT OF THE HONBLE SUPRE ME COURT. BY FOLLOWING THE SAME JUDGMENT, WE DO NOT FIND ANY MER IT IN THE DEPARTMENTAL APPEAL. THE SAME IS ACCORDINGLY DISMIS SED. 4. AS A RESULT, THE DEPARTMENTAL APPEAL STANDS DISM ISSED. ORDER PRONOUNCED ON 22 ND DECEMBER 2009 SD/- SD/- (A. N. PAHUJA) ACOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 22-12-2009 LAKSHMIKANT/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER DY. REGISTRAR, ITAT, AHMEDABAD