ACIT 19(2), MUMBAI V. LOB INTERNATIONAL, MUMBAI

ITA 1506/MUM/2010

• Counselvise Citation: [2010] 119 COUNSELVISE.COM (IT) 6145 (ITAT-MUMBAI)
• Duration Of Justice: 9 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-12-2010
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2004-2005
• Appeal Filed On: 25-02-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'G' BENCH, MUMBAI BEFORE SHRI R.S. PADVEKAR, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO. 1506/MUM/2010 (ASSESSMENT YEAR: 2004-05) ACIT - 19(2) M/S. LOB INTERNATIONAL ROOM NO. 315, 3RD FLOOR G/5/6, KHIRA INDUSTRIAL EST ATE PIRAMAL CHAMBERS, LALBAUG VS. B.M. BHARGAVA MARG, OFF. S.V. ROAD PAREL, MUMBAI 400012 SANTACRUZ (W), MUMBAI 400054 PAN - AAAFL 0305 K APPELLANT RESPONDENT APPELLANT BY: SHRI AARSI PRASAD RESPONDENT BY: SHRI PARAS SAVLA O R D E R PER B. RAMAKOTAIAH, A.M. THIS APPEAL BY THE REVENUE IS FILED AGAINST THE ORD ER OF THE CIT(A)-XXX, MUMBAI DATED 16.12.2009. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUND: - 1. ON FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LEARNED CIT(A) ERRED IN ALLOWING THE PROFIT ON TRAN SFER OF DEPB LICENSE SOLD FOR THE PURPOSE OF DEDUCTION U/S. 80HH C THOUGH THE EXPORT TURNOVER OF THE ASSESSEE IS MORE THAN ` 10 CRORES AND THOUGH THE ASSESSEE DID NOT FULFIL ALL THE CONDITION LAID DOWN IN THE SECTION 80HHC OF THE I.T. ACT. 3. AT THE OUTSET THE LEARNED COUNSEL FOR THE ASSESSEE FAIRLY SUBMITTED THAT THE ISSUE WAS DECIDED BY THE CIT(A) ON THE BA SIS OF THE ORDER OF ITAT IN THE CASE OF TOPMAN EXPORTS VS ITO WHICH WAS CONSIDE RED BY THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF KALPATARU COLOURS AND CHEMICALS 328 ITR 451 ON THE ISSUE OF DPEB. IN VIEW OF THE PRINCI PLES ESTABLISHED BY THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF KALPATARU COLOURS AND CHEMICALS (SUPRA) HE HAS NO OBJECTION TO SEND IT BACK TO THE AO TO EXAMINE THE ISSUE ITA NO. 1506/MUM/2010 M/S. LOB INTERNATIONAL 2 AFRESH ON THE FACTS OF THE CASE. THE LEARNED DR HAS NO OBJECTION. IN VIEW OF THIS, THE AO IS DIRECTED TO RECALCULATE THE DEDUCTI ON U/S 80HHC IN RESPECT OF DEPB RECEIPTS AS PER THE RATIO LAID DOWN BY THE ABO VE DECISION. THE ASSESSEE SHOULD BE GIVEN AN OPPORTUNITY TO SUPPORT THE CLAIMS. ACCORDINGLY THE GROUND IS TREATED AS ALLOWED 4. IN THE RESULT, APPEAL OF THE REVENUE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 3 RD DECEMBER 2010. SD/- SD/- (R.S. PADVEKAR) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 3 RD DECEMBER 2010 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) XXX, MUMBAI 4. THE CIT XIX, MUMBAI CITY 5. THE DR, G BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.