Laxmi Riksahw Body Pvt.Ltd., Aurangabad V. ITO, Ward-1(2), Aurangabad, Aurangabad

ITA 1779/PUN/2007

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 7639 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2004-2005
• Appeal Filed On: 27-12-2007
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: HEMANTKUMAR C LEUVA
• Section: 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE BEFORE SHRI I.C. SUDHIR (JM) AND SHRI G.S. PANNU (AM) ITA NO. 1779 /PN/200 7 ( ASSTT. YEAR : 2004 - 05) LAXMI RIKSHAW BODY PVT. LTD. PLOT NO. B - 170, MIDC, INDUSTRIAL AREA, WALUJ, AURANGABAD PAN : N OT AVAILABLE .. APPELLANT V. I.T.O. WARD - 1(2), AURANGABAD . RESPONDENT A PPELLANT BY : SHRI NIKHIL PATHAK RESPONDENT BY : SHRI HEMANT KUMAR C. LEUVA ORDER PER I.C. SUDHIR JM THE ASSESSEE HAS RAISED FOLLOWING GROUNDS IN THE APPEAL : 1. THE LEARNED CIT(A) WAS NOT JUSTIFIED IN TREATING THE INTEREST EARNED BY THE APPELLANT ON SHORT TERM BUSINESS DEPOSITS AMOUNTING TO RS.17,55,302/ - AS INCOME FROM OTHER SOURCES AND THEREBY REDUCING THE SAID AMOUNT FROM PROFITS ELIGIBLE FOR DEDUCTION U/S. 80 - IB(3)(II). 2. THE LEARNED CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS.25,000/ - TO THE INCOME OF THE APPELLANT ON AN AD - HOC BASIS. GROUND NO.1 2. AT THE OUTSET OF HEARING, THE LD. A.R. FAIRLY SUBMITTED THAT THE ISSUE RAIS ED IN THE GROUND NO.1 IS COVERED AGAINST THE ASSESSEE BY THE RECENT DECISION OF HONBLE SUPREME COURT IN THE CASE OF LIBERTY INDIA V/S. CIT (2009), 317 ITR 218 (S.C). 3. HAVING GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW, IN VIEW OF ABOVE SUBMISSIONS , WE FIND THAT THE AUTHORITIES BELOW HAVE TREATED THE INTEREST EARNED BY THE ASSESSEE ON SHORT - TERM BUSINESS DEPOSITS AMOUNTING TO RS. 17,55,302/ - AS INCOME FROM OTHER SOURCES AND THEREBY THEY HAVE REDUCED THE ITA NO 17 79 /PN/200 7 LAXMI RIKSHAW BODY PVT. LTD.. ASSTT. YEAR : 2004 - 05 PAGE OF 3 2 SAID AMOUNT FROM PROFITS ELIGIBLE FOR DEDUC TION U/S. 80 IB (3) (II). THIS ACTION OF THE AUTHORITIES BELOW HAS BEEN QUESTIONED BY THE ASSESSEE IN GROUND NO. 1. THE HONBLE SUPREME COURT IN ITS RECENT DECISION IN THE CASE OF LIBERTY INDIA V/S. CIT (SUPRA) HAS BEEN PLEASED TO HOLD THAT SECTION 80IB PROVIDES FOR ALLOWING OF THE DEDUCTION IN RESPECT OF PROFITS AND GAINS DERIVED FROM THE ELIGIBLE BUSINESS. THE CONNOTATION OF WORD DERIVED IS NARROWER AS COMPARED TO THAT OF THE WORDS ATTRIBUTABLE TO. BY USING THE EXPRESSION DERIVED FROM PARLIAMENT INTENDED TO COVER SOURCES NOT BEYOND THE FIRST DEGREE. RESPECTFULLY FOLLOWING THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF LIBERTY INDIA V/S. CIT ON THE ISSUE, WE ARE NOT INCLINED TO INTERFERE WITH THE FIRST APPELLATE ORDER IN THIS REGARD WHE REBY HE HAS UPHELD THE ACTION OF THE A.O ON THE ISSUE. THE SAME IS UPHELD. THE GROUND NO. 1 IS, ACCORDINGLY, REJECTED. GROUND NO. 2 4. THE LD. A.R. DID NOT PRESS THIS GROUND, HENCE IT IS REJECTED AS SUCH. 5. IN THE RESULT, APPEAL IS DISMISSED. ORD ER PRONOUNCED IN THE OPEN COURT ON 21ST JANUARY, 2011 SD/ - SD/ - ( G.S.PANNU ) ACCOUNTANT MEMBER ( I.C. SUDHIR ) JUDICIAL MEMBER PUNE , DATED THE 21ST JANUARY , 20 1 1 US COPY OF THE ORDER IS FORWARDED TO : 1. THE A PPELLA NT 2. THE RESPONDENT 3. THE CIT , AURANGABAD 4. THE CIT(A) - , AURANGABAD 5. THE D.R. B BENCH, PUNE 6. GUARD FILE BY ORDER ITA NO 17 79 /PN/200 7 LAXMI RIKSHAW BODY PVT. LTD.. ASSTT. YEAR : 2004 - 05 PAGE OF 3 3 ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE