M/s Jakson and Co., Delhi V. DCIT, New Delhi

ITA 1238/DEL/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 69662 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Next Hearing Date: 16-12-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 05-03-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 153A; 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH D DD D : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G.D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI SHRI SHRI SHRI ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY, ,, , JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NOS SS S. .. .1238/DEL/2013 & 1239/DEL/2013 1238/DEL/2013 & 1239/DEL/2013 1238/DEL/2013 & 1239/DEL/2013 1238/DEL/2013 & 1239/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEARS SS S : : : : 2008 2008 2008 2008- -- -09 & 2009 09 & 2009 09 & 2009 09 & 2009- -- -10 1010 10 M/S JAKSON AND CO M/S JAKSON AND CO M/S JAKSON AND CO M/S JAKSON AND COMPANY MPANY MPANY MPANY, ,, , 47, G 47, G 47, G 47, G.B. ROAD, .B. ROAD, .B. ROAD, .B. ROAD, DELHI DELHI DELHI DELHI 110 006. 110 006. 110 006. 110 006. PAN : PAN : PAN : PAN : AAAFJ5441N. AAAFJ5441N. AAAFJ5441N. AAAFJ5441N. VS. VS. VS. VS. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -25, 25, 25, 25, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI NIREN GUPTA, CA. RESPONDENT BY : SHRI S.N. BHATIA, DR. ORDER ORDER ORDER ORDER PER G. PER G. PER G. PER G.D.AGRAWA D.AGRAWA D.AGRAWA D.AGRAWAL, L, L, L, VP VPVP VP : : : : THESE APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-I, NEW DELHI DATED 30 TH JANUARY, 2013 FOR THE AY 2008-09 & 2009-10. 2. GROUND NO.1 OF THE ASSESSEES APPEALS IN BOTH TH E YEARS IS AGAINST THE VALIDITY OF INITIATION OF PROCEEDINGS U NDER SECTION 153A OF THE INCOME-TAX ACT, 1961. HOWEVER, NO SPECIFIC ARG UMENTS WERE ADVANCED AT THE TIME OF HEARING BEFORE US AGAINST T HE VALIDITY OF THE ISSUE OF NOTICE UNDER SECTION 153A. WE, THEREFORE, TREAT GROUND NO.1 IN BOTH THE YEARS AS NOT PRESSED AND, ACCORDINGLY, REJECT THE SAME. 3. GROUND NO.2 OF THE ASSESSEES APPEAL IS WITH REG ARD TO THE CLAIM OF DEDUCTION UNDER SECTION 80IB IN RESPECT OF SCRAP SALES. IT IS STATED BY THE LEARNED COUNSEL THAT DURING THE YEARS UNDER CONSIDERATION, THE ASSESSING OFFICER ALLOWED DEDUCTION UNDER SECTION 8 0IB BUT WHILE COMPUTING THE AMOUNT, HE EXCLUDED THE SCRAP SALES F ROM THE PROFIT OF THE INDUSTRIAL UNDERTAKING. HE STATED THAT THE ISS UE IS NOW COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF HON'BLE J URISDICTIONAL HIGH ITA-1238 & 1239/D/2013 2 COURT IN THE CASE OF CIT VS. SADHU FORGING LTD. [ 2011] 336 ITR 444 (DELHI). 4. LEARNED DR, ON THE OTHER HAND, RELIED UPON THE O RDERS OF AUTHORITIES BELOW AND STATED THAT THE FACTS OF THE ASSESSEES CASE ARE DIFFERENT THAN THE FACTS BEFORE THE HON'BLE JURISDI CTIONAL HIGH COURT IN THE CASE OF SADHU FORGING LTD. (SUPRA). 5. WE HAVE CAREFULLY CONSIDERED THE ARGUMENTS OF BO TH THE SIDES AND PERUSED THE MATERIAL PLACED BEFORE US. AFTER C ONSIDERING THE ARGUMENTS OF BOTH THE SIDES AND THE FACTS OF THE CA SE, WE AGREE WITH THE CONTENTION OF THE LEARNED COUNSEL FOR THE ASSES SEE THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION O F HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF SADHU FORG ING LTD. (SUPRA), WHEREIN THEIR LORDSHIPS OF JURISDICTIONAL HIGH COUR T HELD AS UNDER:- THE RECEIPTS FROM SALE OF SCRAP BEING PART AND PAR CEL OF THE ACTIVITY AND BEING PROXIMATE THERETO WOULD ALSO BE WITHIN THE AMBIT OF GAINS DERIVED FROM THE INDUSTRI AL UNDERTAKING FOR THE PURPOSE OF COMPUTING DEDUCTION UNDER SECTION 80-IB. 6. RESPECTFULLY FOLLOWING THE ABOVE DECISION OF HON 'BLE JURISDICTIONAL HIGH COURT, WE DIRECT THE ASSESSING OFFICER TO COMP UTE THE DEDUCTION UNDER SECTION 80IB AFTER TAKING INTO ACCOUNT THE SC RAP SALES. 7. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE P ARTLY ALLOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 20 TH DECEMBER, 2013. SD/- SD/- ( (( (ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY) )) ) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 20.12.2013 VK. ITA-1238 & 1239/D/2013 3 COPY FORWARDED TO: - 1. APPELLANT : M/S JAKSON AND COMPANY, M/S JAKSON AND COMPANY, M/S JAKSON AND COMPANY, M/S JAKSON AND COMPANY, 47, G.B. ROAD, DELHI 47, G.B. ROAD, DELHI 47, G.B. ROAD, DELHI 47, G.B. ROAD, DELHI 110 006. 110 006. 110 006. 110 006. 2. RESPONDENT : DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -25, NEW DELHI. 25, NEW DELHI. 25, NEW DELHI. 25, NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR