ACIT, Ludhiana V. M/s Amco Fabrics Pvt. Ltd., Ludhiana

ITA 158/CHANDI/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 51438 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 6 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2011
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 01-09-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 08-02-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AJAY SHARMA
• Section: 143(3); 80HHC

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B CHANDIGARH BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBER AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER ITA NO. 158/CHD/2010 ASSESSMENT YEAR: 2004-05 THE ACIT, VS. M/S AMCO FABRICS PVT LIMITED, CIRCLE-1, LUDHIANA CHANDIGARH PAN NO. AABCA4253B (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AJAY SHARMA RESPONDENT BY : NONE DATE OF HEARING : 01.09.2011 DATE OF PRONOUNCEMENT : 07.09.2011 ORDER PER SUSHMA CHOWLA, JM THE APPEAL BY THE REVENUE IS AGAINST THE ORDER OF C IT(A)-I, LUDHIANA DATED 6.11.2009 RELATING TO ASSESSMENT YEA R 2004-05 AGAINST THE ORDER PASSED UNDER SECTION 143(3) OF THE I.T. ACT, 1961. 2. THE ONLY GROUND OF APPEAL RAISED BY THE REVENUE IS AS UNDER:- 1. THAT THE LD. CIT(A) ERRED IN LAW AND FACTS IN DELET ING THE ADDITION MADE BY THE ASSESSING OFFICER BY ALLOW ING DEDUCTION U/S 80HHC ON DEPB RECEIVABLE AMOUNTING TO RS. 33,05,694/-, WHICH WAS NOT TAKEN INTO CONSIDERATION BY ASSESSING OFFICER FOR COMPUTING DEDUCTION U/S 80HHC OF THE INCOME TAX ACT, 1961. 2 3. THE ISSUE IN THE PRESENT APPEAL IS AGAINST THE C OMPUTATION OF DEDUCTION U/S 80HHC OF THE ACT ON THE DEPB RECEIPTS . THE LD. DR FOR THE REVENUE POINTED OUT THAT THE ISSUE STANDS COVER ED BY THE ORDER OF THE TRIBUNAL IN BUNCH OF APPEALS DECIDED WITH LEAD ORDE R IN M/S FITEX INDUSTRIES V ACIT, LUDHIANA IN ITA NO. 906/CHD/2006 VIDE ORDER DATED 30.6.2011. THE LD. AR FOR THE ASSESSEE FAIRLY ADMI TTED TO THE SAME. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ISSUE OF ASSESSABILITY OF RECEIPTS ON TRANSFER OF DEPB HAS ARISEN BEFORE THE TRIBUNAL IN THE GROUP CASES WITH LEAD OR DER IN M/S FITEX INDUSTRIES IN ITA NO. 956/CHD/2006 RELATING TO ASS ESSMENT YEAR 2003- 04 AND OTHERS VIDE ORDER DATED 30.6.2011. THE TRIBU NAL VIDE ORDER DATED 30.6.2011 HAS APPLIED THE RATIO LAID DOWN BY THE HON'BLE BOMBAY HIGH COURT IN KALAPATARU COLOURS & CHEMICALS (328 ITR 451 (BOM)), WHICH WAS APPROVED BY THE JURISDICTIONA L HIGH COURT IN THE CASE OF CIT VS. F.C.SONDHI & COMPANY (P) LTD IN ITA NO. 299 OF 2010 VIDE JUDGMENT DATED 16.8.2010. THE TRIBUNAL VIDE ITS ORDER DATED 30.6.2011 HAD DIRECTED THE ASSESSING OFFICER TO RECOMPUTE THE DEDUCTION UNDER SECTION 80HHC OF THE ACT IN LINE WI TH THE DIRECTIONS IN THE PARAS THEREIN, AFTER ALLOWING REA SONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE IN THE CAPTI ONED APPEALS. 5. THE ISSUE IN CAPTIONED APPEAL BEFORE US IS IDENT ICAL TO THE ISSUE RAISED IN M/S FITEX INDUSTRIES & OTHERS (SUPR A) AND OUR ORDER IN M/S FITEX INDUSTRIES & OTHERS (SUPRA) SHALL APPL Y MUTATIS MUTANDIS TO THIS APPEAL ALSO. THE ASSESSING OFFICE R IS DIRECTED TO COMPUTE THE DEDUCTION UNDER SECTION 80HHC IN LINE W ITH OUR 3 DIRECTIONS IN THE AFORESAID ORDER, AFTER AFFORDING REASONABLE OPPORTUNITY TO THE ASSESSEE. 6. ACCORDINGLY, THE CAPTIONED APPEAL OF THE REVENUE IS DISPOSED OFF AS INDICATED ABOVE FOLLOWING THE DIRECTIONS OF HON'BLE BOMBAY HIGH COURT IN KALAPATRU COLOURS & CHEMICALS (SUPRA) , WHICH HAS SINCE BEEN APPROVED BY THE HON'BLE JURISDICTIONAL C OURT. REGISTRY IS DIRECTED TO ENCLOSE COPY OF ORDER IN FITEX INDUS TRIES & OTHERS (SUPRA) FOR READY REFERENCE. 7. IN THE RESULT, THE CAPTIONED APPEAL IS ALLOWED F OR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 7 TH DAY OF SEPTEMBER, 2011. SD/- SD/- (MEHAR SINGH) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 7 TH SEPTEMBER, 2011 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR TRUE COPY BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH 4