DCIT 12(2), MUMBAI V. GENERAL EXPORT, MUMBAI

ITA 1742/MUM/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3693 (ITAT-MUMBAI)
• Duration Of Justice: 9 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 01-12-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 05-03-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R N VASANI
• Section: 80HHC; 154

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. 1742/MUM/2010 (ASSESSMENT YEAR: 2006-07) DCIT 12(2) M/S. GENERAL EXPORT ENTERPRISES ROOM NO. 114, AAYAKAR BHAVAN 5, FERN HOUSE, 2ND FLO OR M.K. ROAD, MUMBAI 400020 VS. OPP ELECTRIC HOUSE, COLABA CAUSEWAY , MUMBAI 40001 PAN - AAAFG 0678 E APPELLANT RESPONDENT APPELLANT BY: SHRI AARSI PRASAD RESPONDENT BY: SHRI R.N. VASANI O R D E R PER B. RAM AKOTAIAH, A.M. THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER OF THE CIT(A) XXIII, MUMBAI DATED 10.12.2009. 2. REVENUE HAS RAISED GROUNDS WITH REFERENCE TO THE DE PB LICENCE WHICH ARE BROUGHT TO TAX. THE A.O., AT THE TIME OF ASSESS MENT, DID NOT GIVE DEDUCTION ON THE DIFFERENCE OF THE AMOUNTS OFFERED IN EARLIER YEAR ON PROVISIONAL BASIS BUT ACCOUNTED ON ACTUAL BASIS IN THIS YEAR. WHEN THIS ISSUE WAS CONTESTED STATING THAT THE ASSESSEE WAS F OLLOWING CONSISTENT METHOD OF ACCOUNTING AND THE DEDUCTION AND THE AMOU NT WHICH WAS TAXED IN A.Y. 2005-06 SHOULD BE ALLOWED IN 2006-07, THE C IT(A), RELYING ON THE DECISION OF THE ITAT SPECIAL BENCH IN THE CASE OF M /S. TOPMAN EXPORTS VS. ITO 318 ITR (AT) 87 (MUM)(SB), DISCUSSED THE LEGAL PRINCIPLES AND RESTORED THE MATTER BACK TO THE A.O. TO EXAMINE IT AFRESH. T HE REVENUE PREFERRED THE PRESENT APPEAL. 3. SUBSEQUENTLY THE ASSESSEE FILED AN APPLICATION UNDE R SECTION 154 TO THE CIT(A) INDICATING THAT THE ASSESSEE HAD NOT CLA IMED DEDUCTION UNDER SECTION 80HHC AT ALL AND THE DIRECTIONS GIVEN IN PA RA 2.3 DOES NOT ARISE OUT OF THE GROUNDS AND THE GROUNDS OF THE ASSESSEE WERE NOT DISPOSED OFF. ITA NO. 1742/MUM/2010 M/S. GENERAL EXPORT ENTERPRISES 2 CONSEQUENT TO THAT THE CIT(A) VIDE ORDER DATED 30.0 8.2010 MODIFIED PARA 2.3 GIVING DIRECTIONS TO THE A.O. ON THE ISSUE INVO LVED. 4. THE LEARNED COUNSEL SUBMITTED THAT THE ORDER WAS MO DIFIED BY THE CIT(A), HENCE THE APPEAL BECOMES INFRUCTUOUS AND FI LED THE ORDER OF THE CIT(A) UNDER SECTION 154/250 ON RECORD. 5. THE LEARNED D.R., AFTER EXAMINING THE RECORD, STATE D THAT THE GROUNDS BECOME INFRUCTUOUS IN VIEW OF THE MODIFICATION ORDE R PASSED BY THE CIT(A). ACCORDINGLY THE APPEAL IS TREATED AS INFRUCTUOUS. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH DECEMBER 2010. SD/- SD/- (R.S. PADVEKAR) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 10 TH DECEMBER 2010 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) XXIII, MUMBAI 4. THE CIT XII, MUMBAI CITY 5. THE DR, G BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.