The ITO, Ward-4(1), Ahmedabad V. Gateway Technolabs Pvt. Ltd., Ahmedabad

ITA 1950/AHD/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 0223 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 27-10-2009
• Assessment Year: 2006-2007
• Appeal Filed On: 15-06-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHELLEY JINDAL
• Assessee Lawyers: J P SHAH
• Section: 10B

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL : C BENCH : AHMEDABAD (BEFORE HONBLE SHRI T.K. SHARMA, J.M. & HONBLE SH RI D.C. AGARWAL, A.M.) I.T.A. NO. 1950/AHD./2009 ASSESSMENT YEAR : 2006-2007 INCOME TAX OFFICE, WARD-4(1), AHMEDABAD -VS.- G ATEWAY TECHNOLAB PVT. LTD., AHMEDABAD (P.A. NO. AABCG 4206 C) (APPELLANT) (R ESPONDENT) APPELLANT BY : SHRI SHELLEY JINDAL RESPONDENT BY : SHRI J.P. SHA H O R D E R PER SHRI T.K. SHARMA, JUDICIAL MEMBER :- THIS APPEAL BY THE DEPARTMENT IS AGAINST THE ORDER DATED 25.02.2009 OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-VIII, AHMEDABAD FOR THE ASSESSMENT YEAR 2006-2007. 2. THE ONLY GROUND RAISED IN THIS APPEAL IS AS UNDE R :- THE LD. C.I.T.(A) ERRED IN LAW AND ON FACTS IN DIR ECTING THE ASSESSING OFFICER TO ALLOW THE DEDUCTION U/S. 10B OF THE ACT THOUGH ON THE FACTS OF THE CASE THE ASSESSEE IS NOT ENTITLED FOR THE SAME. 3. AT THE OUTSET, SHRI J.P. SHAH, LD. COUNSEL OF TH E ASSESSEE STATED THAT THE ASSESSEES BUSINESS WAS STARTED FOR THE FIRST TIME IN THE PREVIOUS YEAR RELEVANT TO THE ASSESSMENT YEAR 2002-03 IN A NEW PREMISES OF SOFTWARE DEVELOPMENT AND EXPORT AND ALSO THE BUSINESS OF FOUR SISTER CONCERNS AND THIS IS NOT THE FIRST YEAR IN WHICH THE DEDUCTI ON UNDER SECTION 10B OF THE ACT WAS CLAIMED. IN THE ASSESSMENT YEAR 2003-04, ITAT, C BENCH, AHMED ABAD VIDE ORDER DATED 04-09-2009 IN ITA NOS. 2473 & 2519/AHD./2006 IN ASSESSEES OWN CASE F OR THE ASSESSMENT YEAR 2003-04 FOLLOWING THE JUDGMENT OF THE HON'BLE GUJARAT HIGH COURT IN T HE CASE OF SAURASHTRA CEMENT & CHEMICAL INDUSTRIES LTD. VS.- CIT REPORTED IN [1980] 123 IT R 669 (GUJ.), AND THE DECISION OF ITAT, CHANDIGARH B BENCH IN THE CASE OF JAIN UDHAY HOSI ERY (P) LTD. VS.- ACIT (2005) 1 SOT 193 (CHD.) HELD THAT THE ASSESSEE IS ENTITLED TO DEDUCT ION UNDER SECTION 10B OF THE INCOME TAX ACT, 1961. HE ACCORDINGLY CONTENDED THAT THE MATTER IS S QUARELY COVERED BY THE DECISION OF THE TRIBUNAL FOR THE ASSESSMENT YEAR 2003-04 IN ASSESSE ES OWN CASE (SUPRA). THEREFORE, THE VIEW 2 TAKEN BY THE LEARNED COMMISSIONER OF INCOME TAX(APP EALS) DIRECTING THE ASSESSING OFFICER TO ALLOW THE DEDUCTION UNDER SECTION 10B OF THE I.T. A CT BE UPHELD. 4. SHRI SHELLEY JINDAL, LD. DEPARTMENTAL REPRESENTA TIVE APPEARED AND COULD NOT CONTROVERT THE AFORESAID SUBMISSIONS MADE BY THE LD. COUNSEL F OR THE ASSESSEE. 5. WE HAVE GIVEN OUR CAREFUL CONSIDERATION TO THE R IVAL SUBMISSIONS MADE BEFORE US AND HAVE PERUSED THE ORDERS OF AUTHORITIES BELOW. THE H ON'BLE GUJARAT HIGH COURT IN THE CASE OF SAURASHTRA CEMENT & CHEMICAL INDUSTRIES LTD. VS.- CIT (SUPRA) LAID DOWN THAT ONCE DEDUCTION IS ALLOWED IN THE FIRST YEAR, REVENUE HAS NO POWER TO DENY THE DEDUCTION IN SUBSEQUENT ASSESSMENT YEARS AS PROVIDED UNDER THE ACT. SIMILAR VIEW HAS T AKEN BY THE ITAT, B BENCH CHANDIGARH, IN THE CASE OF JAIN UDHAY HOSIERY (P) LTD. VS.- ACIT (SUPRA). SINCE THE MATTER IS SQUARELY COVERED BY THE DECISION OF ITAT, C BENCH, AHMEDABAD IN AS SESSEES OWN CASE IN ITA NOS. 2473 & 2519/AHD./2006 FOR THE ASSESSMENT YEAR 2003-04, WE FOLLOWING THE SAME UPHOLD THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS). 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. THE ORDER PRONOUNCED IN THE COURT ON 30.10.2009 SD/- SD/- (D.C. AGARWAL) (T.K. SHARMA ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 30 / 10 / 2009 COPY OF THE ORDER IS FORWARDED TO : 1) THE ASSESSEE (2) THE RESPONDENT 3) THE CIT(A) CONCERNED, (4) CIT CONCERNED, (5) D.R., ITAT, AHMEDABAD. TRUE COPY BY ORDER DEPUTY REGISTRAR, ITAT, AHMEDABAD LAHA/SR.P.S.