M/s. ASHAPURA MINECHEM LTD., MUMBAI V. ACIT CIR - 1(1), MUMBAI

ITA 1466/MUM/2006

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9015 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 10 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 29-12-2010
• Assessment Year: 2002-2003
• Appeal Filed On: 01-03-2006
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G GURUSWAMY
• Assessee Lawyers: MRS HARSHA JOSHI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI B BENCH BEFORE SHRI T.R.SOOD, ACCOUNTANT MEMBER AND SHRI R.S.PADVEKAR, JUDICIAL MEMBER I.T.A.NO.1466/MUM/2006 - A.Y 2002-03 M/S. ASHAPURA MINECHEM LTD., JEEVAN UDYOG BLDG., 3 RD FLOOR, 278, D.N.ROAD, FORT, MUMBAI 400 001. PAN: AKKPS 7103 G VS. ASST. COMMISSIONER OF I.T., CIRCLE 1 (1), MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : MRS. HARSHA JOSHI. RESPONDENT BY : MR. G.GURUSWAMY. O R D E R PER T.R.SOOD, AM: IN THIS APPEAL, ASSESSEE HAS RAISED VARIOUS GROUND S, OUT OF WHICH GROUND NOS.1 TO 3 WERE NOT PRESSED AND, THERE FORE, SAME ARE DISMISSED AS NOT PRESSED. GROUND NOS.4 & 5 ARE AS U NDER: 4. THE LEARNED COMMISSIONER OF INCOME TAX [A] HAS ERRED IN NOT ALLOWING INTEREST OF ` `` ` .45,11,514/- & MISCELLANEOUS INCOME OF ` `` ` .47,587/-. THE LEARNED COMMISSIONER OF INCOME TAX [ A] SHOULD HAVE ALLOWED THE SAME ON THE BASIS OF AUDITO RS WORKING. 5. THE LEARNED COMMISSIONER OF INCOME TAX [A] SH OULD HAVE ALLOWED DEPB OF ` `` ` .49,61,369/- AS THE MATTER IS BEING AGITATED IN SEVERAL HIGH COURTS & ALSO THE AMENDMENT BEING RETROSPECTIVE. THIS ISSUE MAY PLEASE BE DECIDED AS PER DECISION OF THE COURTS. 2. GROUND NO.4 : AFTER HEARING BOTH THE PARTIES, WE FIND THAT AO HAD REDUCED 90% OF THE GROSS INTEREST INCOME AS WEL L AS MISCELLANEOUS INCOME WHILE COMPUTING DEDUCTION U/S.80HHC AND THE ACTION OF THE AO WAS CONFIRMED ON APPEAL BY THE LD. CIT[A]. 2 3. BEFORE US, LD. COUNSEL OF THE ASSESSEE FAIRLY CO NCEDED THAT NOW THE ISSUE IS COVERED BY THE DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. ASIAN STAR CO. LTD. 32 6 ITR 64. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS WE FIND THAT THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. ASIAN STAR CO. LTD. [SUPRA] HAS HELD THAT WHILE COMPUTING DEDUCTION U/S.80HHC, 90% OF THE INTEREST INCOME AND OTHER CHARGES WHICH ARE OF SIMI LAR NATURE, HAVE TO BE REDUCED FROM THE BUSINESS PROFITS. RESPECTFULLY FOLLOWING THIS DECISION, WE DECIDE THIS ISSUE AGAINST THE ASSESSEE . 5. GROUND NO.5 : IN RESPECT OF THIS ISSUE, BOTH THE PARTIES AGREED THAT THE ISSUE REGARDING DEDUCTION U/S.80HHC ON ACC OUNT DEPB, IS COVERED BY THE DECISION OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. KALPATARU COLOUR & CHEMICAL 328 ITR 461. THEREFORE, FOLLOWING THIS DECISION WE SET ASIDE THE ORDER OF T HE LD. CIT[A] AND REMIT THE MATTER BACK TO THE FILE OF THE AO WITH A DIRECTION TO DECIDE THE ISSUE IN THE LIGHT OF THE DECISION HON'BLE BOMB AY HIGH COURT IN THE CASE OF CIT VS. KALPATARU COLOUR & CHEMICAL [SUPRA] . 6. IN THE RESULT, APPEAL IS PARTLY ALLOWED FOR STAT ISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 5 TH DAY OF JANUARY, 2011. SD/- SD/- (R.S.PADVEKAR) (T.R.SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI:5/1/2011 3 P/-*