ACIT, Circle-8(2), Kolkata, Kolkata V. M/s Shree Ganesh Jewellery House Ltd., Kolkata

ITA 1639/KOL/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 7297 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 16-08-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DR P K SRIHARI
• Keywords: Business income
• Section: 10AA; 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA C BENCH, KOLKATA [BEFORE SHRI J. SUDHAKAR REDDY, HONBLE ACCOUNTANT MEMBER & SRI S.S. GODARA, HONBLE JUDICIAL MEMBER] I.T.A. NO. 1639/KOL/2016 ASSESSMENT YEAR: 2009-10 ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE-8(2)1, KOLKATA.......................APPELLANT VS. M/S. SHREE GANESH JEWELLERY HOUSE LTD.......RESPONDENT 25A, CAMAC STREET KOLKATA 700 016 [PAN: AAGCS 7343 P] APPEARANCES BY: DR. P.K. SRIHARI, CIT,. D/R, APPEARING ON BEHALF OF THE REVENUE NONE, APPEARED ON BEHALF OF THE ASSESSEE. DATE OF CONCLUDING THE HEARING : OCTOBER 16 TH , 2019 DATE OF PRONOUNCING THE ORDER : OCTOBER 23 RD , 2019 O R D E R PER J. SUDHAKAR REDDY, AM :- THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 17, KOLKATA, (HEREINAFTER THE LD.CIT(A)), PASSED U/S. 250 OF THE INCOME TAX ACT, 1961 (THE ACT), DT. 15/04/2016, FOR THE ASSESSMENT YEAR 2009-10, ON THE FOLLOWING EFFECTIVE GROUND/S:- 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION TO ADDITION OF RS.38,95,01,000/- WITH RESPECT TO INTEREST INCOME ON FIXED DEPOSIT NOT ELIGIBLE FOR DEDUCTION U/S 10AA OF THE I.T. ACT, 1961. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE ISSUAL OF NOTICE OF HEARING ON VARIOUS DATES. THIS CASE HAS COME UP FOR HEARING FOR THE FIRST TIME ON 05/03/2018 AND THEREAFTER ON EIGHT OCCASIONS. NONE APPEARED ON BEHALF OF THE ASSESSEE ON ANY OF THESE DATES. NOTICES WERE ALSO SERVED THROUGH RPAD, THE ACKNOWLEDGEMENT WAS ON RECORD. THE LD. D/R SUBMITS THAT THE NOTICE OF HEARING WAS SERVED BY WAY OF AFFIXTURE. UNDER THESE CIRCUMSTANCES, WE DISPOSE OFF THE CASE EX-PARTE ON MERITS, QUA THE ASSESSEE, AFTER HEARING THE LD. D/R. 3. WE HAVE HEARD THE LD. D/R. ON CAREFUL CONSIDERATION OF THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THE ISSUE IN QUESTION IS COVERED BY THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF LIBERTY INDIA VS. CIT REPORTED IN [2009] 317 ITR 218 (SC) , WHEREIN IT WAS HELD THAT THE PROFITS DERIVED FROM EXPORTS ARE ONLY ELIGIBLE FOR DEDUCTION AND ANY ANCILLARY/OTHERS INCOME SHALL BE EXCLUDED FROM ELIGIBLE BUSINESS INCOME FOR COMPUTING EXEMPTION. AP PLYING THE PROPOSITIONS OF LAW LAID DOWN BY THE HONBLE SUPREME COURT TO THE FACTS OF THE CASE ON HAND, WE REVERSE THE ORDER OF THE LD. CIT(A) AND RESTORE THE ORDER OF THE ASSESSING OFFICER, ON THE ISSUE OF ADDITION IN RESPECT OF INTEREST INCOME FROM FIXED DEPOSITS. 4. IN THE RESULT, APPEAL OF THE REVENUE IS KOLKATA, THE SD/- [S.S. GODARA] JUDICIAL MEMBER DATED : 23.10.2019 {SC SPS} C OPY OF THE ORDER FORWARDED TO: 1. M/S. SHREE GANESH JEWELLERY HOUSE LTD 25A, CAMAC STREET KOLKATA 700 016 2. ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE 3. CIT(A)- 4. CIT- , 5. CIT(DR), KOLKATA BENCHES, KOLKATA. 2 FROM EXPORTS ARE ONLY ELIGIBLE FOR DEDUCTION AND ANY ANCILLARY/OTHERS INCOME SHALL BE EXCLUDED FROM ELIGIBLE BUSINESS INCOME FOR COMPUTING EXEMPTION. PLYING THE PROPOSITIONS OF LAW LAID DOWN BY THE HONBLE SUPREME COURT TO THE FACTS OF THE CASE ON HAND, WE REVERSE THE ORDER OF THE LD. CIT(A) AND RESTORE THE ORDER OF THE ASSESSING OFFICER, ON THE ISSUE OF ADDITION IN RESPECT OF INTEREST IN THE RESULT, APPEAL OF THE REVENUE IS ALLOWED. KOLKATA, THE 23 RD DAY OF OCTOBER, 2019. [ J. SUDHAKAR REDDY JUDICIAL MEMBER ACCOUNTANT MEMBER OPY OF THE ORDER FORWARDED TO: M/S. SHREE GANESH JEWELLERY HOUSE LTD COMMISSIONER OF INCOME TAX, CIRCLE -8(2)1, KOLKATA 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES I.T.A. NO. 1639/KOL/2016 ASSESSMENT YEAR: 2009-10 M/S. SHREE GANESH JEWELLERY HOUSE LTD. FROM EXPORTS ARE ONLY ELIGIBLE FOR DEDUCTION AND ANY ANCILLARY/OTHERS INCOME SHALL BE EXCLUDED FROM ELIGIBLE BUSINESS INCOME FOR COMPUTING EXEMPTION. PLYING THE PROPOSITIONS OF LAW LAID DOWN BY THE HONBLE SUPREME COURT TO THE FACTS OF THE CASE ON HAND, WE REVERSE THE ORDER OF THE LD. CIT(A) AND RESTORE THE ORDER OF THE ASSESSING OFFICER, ON THE ISSUE OF ADDITION IN RESPECT OF INTEREST SD/- J. SUDHAKAR REDDY ] ACCOUNTANT MEMBER TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES