DCIT, CHENNAI V. M/s. Brakes India Ltd., CHENNAI

ITA 1165/CHNY/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61141 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 9 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-05-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 09-05-2012
• Assessment Year: 2002-2003
• Appeal Filed On: 15-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAJI P JACOB IRS
• Assessee Lawyers: R VIJAYARAGHAVAN
• Keywords: Reopening of assessment
• Section: 143(3); 80HHC; 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ITA NO.1182(MDS)/2010 ASSESSMENT YEAR: 2002-03 M/S.BRAKES INDIA LIMITED, PADI, CHENNAI-600 050. PAN AAACB2533Q. VS. THE DEPUTY COMMISSIONER OF INCOME-TAX, LARGE TAXPAYER UNIT, CHENNAI. (APPELLANT) (RESPONDENT) AND ITA NO.1165(MDS)/2010 ASSESSMENT YEAR : 2002-03 THE DEPUTY COMMISSIONER M/S.BRAKES INDIA LTD., OF INCOME-TAX, LARGE VS. PADI, TAXPAYER UNIT, CHENNAI. CHENNAI -600 050. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.VIJAYARAGHAVAN, ADVOC ATE DEPARTMENT BY : SHRI SHAJI P JACOB, IRS, CIT. DATE OF HEARING : 9 TH MAY, 2012 DATE OF PRONOUNCEMENT : 9 TH MAY, 2012 O R D E R PER DR.O.K.NARAYANAN, VICE PRESIDENT THESE ARE CROSS APPEALS FILED FOR THE ASSESSMENT YEAR 2002-03. THESE CROSS APPEALS ARE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS), LARGE TAXP AYER UNIT - - ITA 1182 & 1165 OF 2010 2 AT CHENNAI, DATED 28-4-2010. THEY ARISE OUT OF THE ASSESSMENT COMPLETED UNDER SECTION 143(3) OF THE INCOME-TAX AC T, 1961. 2. IN THEIR APPEAL THE REVENUE HAS RAISED THE GROU ND THAT EXCLUSION OF DEPB INCOME MADE BY THE ASSESSING OFFICER FOR DEDUCTION UNDER SECTION 80HHC SHOULD HAVE BEEN UPHELD BY THE COMMISSIONER OF INCOME-TAX(APPEALS). IT IS THE CASE OF THE REVENUE THAT THE DEPB BENEFIT UTILIZED FOR OWN CONS UMPTION WILL ALSO COME WITHIN THE PURVIEW OF SECTION 28(IIID) OF THE INCOME-TAX ACT, 1961. IT IS ALSO THE CASE OF THE REVENUE THAT THE SPECIAL BENCH DECISION OF THE TRIBUNAL, MUMBAI, IN THE CASE OF M/S.TOPMAN EXPORTS, ON WHICH THE COMMISSIONER OF IN COME- TAX(APPEALS) HAS PLACED RELIANCE, HAS BEEN REVERSED BY THE HONBLE MUMBAI HIGH COURT. THEREFORE, THE PRAYER O F THE REVENUE IS THAT THE ORDER OF THE COMMISSIONER OF IN COME- TAX(APPEALS) ON THIS POINT MAY BE SET ASIDE. 3. IT IS TO BE SEEN THAT THE HONBLE SUPREME COURT HAS UPHELD THE DECISION OF THE INCOME-TAX APPELLATE TRI BUNAL, SPECIAL MUMBAI, IN THE CASE OF M/S.TOPMAN EXPORTS VS CIT, 2 47 CTR 353. AS SUCH THE DECISION OF THE HONBLE BOMBAY HI GH COURT IS NOT APPLICABLE, AS POINTED OUT BY THE REVENUE. THE ISSUE NOW - - ITA 1182 & 1165 OF 2010 3 STANDS DECIDED BY THE DECISION OF THE HONBLE SUPRE ME COURT IN FAVOUR OF THE ASSESSEE. THEREFORE, THE APPEAL FILE D BY THE REVENUE IS LIABLE TO BE DISMISSED. 4. IN THE APPEAL FILED BY THE ASSESSEE, THE GROUND RAISED IS IN RESPECT OF THE REOPENING OF ASSESSMENT UNDER SECTION 147 BEYOND THE PERIOD OF FOUR YEARS. AS TH E DISPUTE ON MERIT ITSELF IS DECIDED IN FAVOUR OF THE ASSESSEE B Y VIRTUE OF THE DECISION OF THE HONBLE SUPREME COURT, THE GROUNDS RAISED BY THE ASSESSEE BECOME JUST ACADEMIC. THE APPEAL FILE D BY THE ASSESSEE IS ALSO, THEREFORE, LIABLE TO BE DISMISSED AS INFRUCTUOUS. 5. IN RESULT, BOTH THE APPEALS ARE DISMISSED. ORDERS PRONOUNCED IN THE OPEN COURT AT THE TIME O F HEARING ON WEDNESDAY, THE 9 TH OF MAY, 2012 AT CHENNAI. SD/- SD/- (CHALLA NAGENDRA PRASAD) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED, THE 9 TH MAY, 2012. V.A.P. COPY TO: 1. ASSESSEES 6.GF. 2. DEPARTMENT 3. CIT 4. CIT(A) 5. DR