M/s Greatway Pvt. Ltd., Ludhiana V. ACIT, Ludhiana

ITA 2/CHANDI/2012

• Counselvise Citation: 221514 RSA 2012
• Duration Of Justice: 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2001-2002
• Appeal Filed On: 02-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N K SAINI
• Assessee Lawyers: SUBHASH AGGARWAL
• Section: 143(3); 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A CHANDIGARH BEFORE SHRI H.L.KARWA, HON'BLE, VICE PRESIDENT AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER ITA NOS. 1 & 2/CHD/2012 ASSESSMENT YEARS: 2000-01 & 2001-02 M/S GREATWAY PVT. LTD., VS THE ACIT, CIRCLE V, LUDHIANA LUDHIANA PAN NO. AAACG5750E (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SUBHASH AGGARWAL RESPONDENT BY : SHRI N.K. SAINI DATE OF HEARING : 16.2.2012 DATE OF PRONOUNCEMENT : 21.2.2012 ORDER PER H.L.KARWA, VP THESE TWO APPEALS BY THE ASSESSEE ARE DIRECTED AGAI NST THE SEPARATE ORDERS OF CIT(A)-II, LUDHIANA DATED 17.10.2011 REL ATING TO ASSESSMENT YEARS 2000-01 AND 2001-02. 2. THE ISSUES INVOLVED IN THESE APPEALS ARE COMMON AND, THEREFORE, THEY WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY TH IS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 3. THE COMMON GROUNDS OF APPEALS ARE AS UNDER:- 1. THAT THE LD. CIT(A)-II HAS ERRED IN NOT FOLLOWING T HE DIRECTIONS OF THE HON'BLE TRIBUNAL AND THUS EXCEEDE D HIS 2 JURISDICTION IN REJECTING THE CLAIM OF THE APPELLAN T IN RESPECT OF DEDUCTION U/S 80HHC ON THE VALUE OF DEPB . 2. THAT THE LD. CIT(A)-II HAS ERRED IN FOLLOWING TH E JUDGMENT OF THE HON'BLE MUMBAI HIGH COURT IN THE CA SE OF KALPATARU COLOURS AND CHEMICAL IGNORING THE SPEC IFIC DIRECTIONS OF THE HON'BLE TRIBUNAL FOR DECIDING THE ISSUE ON THE BASIS OF SPECIAL BENCH JUDGMENT IN THE CASE OF M/S TOPMAN EXPORTS V ITO. 4. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT F OR THE ASSESSMENT YEAR 2000-01, THE ORIGINAL ASSESSMENT WAS COMPLETED U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT') ON 28.12.2007 AT AN INCOME OF RS. 1,00,73,863/- AFTER DISALLOWING DEDUCTION U/S 80HHC ON DEPB. SIMILARLY, FOR ASSESSMENT YEAR 2001-02, ORIGINAL ASSESSMENT WA S COMPLETED U/S 143(3) OF THE ACT ON 28.1.2007 AT AN INCOME OF RS. 1,00,34 ,972/- AFTER DISALLOWING DEDUCTION U/S 80HHC ON DEPB. THE CIT(A)-II, LUDHIA NA CONFIRMED THE ACTION OF THE ASSESSING OFFICER DURING APPELLATE PR OCEEDINGS BUT THE TRIBUNAL SET ASIDE THE ORDER OF CIT(A) AND RESTORED THE MATT ER BACK TO THE FILE OF ASSESSING OFFICER TO BE ADJUDICATED AFRESH FOR THE PURPOSE OF RE-COMPUTING THE DEDUCTION U/S 80HHC IN THE LIGHT OF THE VIEW EX PRESSED BY THE ITAT MUMBAI, SPECIAL BENCH IN THE CASE OF M/S TOPMAN EXP ORTS. THE ASSESSING OFFICER DURING PROCEEDINGS HAS HELD THAT THE DECISI ON OF THE MUMBAI SPECIAL BENCH IN THE CASE OF M/S TOPMAN EXPORTS HAS BEEN RE VERSED BY THE HON'BLE MUMBAI HIGH COURT IN THE CASE OF CIT V M/S KALAPATA RU COLOURS AND CHEMICALS (2010) 328 ITR 451 (BOM) AND GRANTED NO R ELIEF TO THE ASSESSEE. ON APPEAL, THE CIT(A) DISMISSED THE APPEALS OF THE ASSESSEE FOR BOTH THE 3 YEARS UNDER CONSIDERATION AND HENCE THE ASSESSEE HA S FILED THESE APPEALS BEFORE THE TRIBUNAL AGAINST THE ORDER OF CIT(A). 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE ALS O PERUSED THE MATERIALS AVAILABLE ON RECORD. AT THE VERY OUTSET, SHRI SUBHASH AGGARWAL, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISS UE IS NO LONGER RES-INTGRA. THE HON'BLE SUPREME COURT IN THE CASE OF M/S TOPMAN EXPORTS V CIT, MUMBAI IN CIVIL APPEAL NO. 1699 OF 2012 (ARISING OU T OF SLP (C) NO. 26588 OF 2010) & OTHERS VIDE JUDGMENT DATED FEBRUARY 8, 2 012 SET-ASIDE THE JUDGMENT AND ORDERS OF HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT V KALAPATARU COLOURS AND CHEMICALS (2010) 328 ITR 451 , M/S TOPMAN EXPORTS AND OTHER CONNECTED APPEALS. A COPY OF THE JUDGMEN T OF THE HON'BLE SUPREME COURT WAS FILED BEFORE US. SHRI SUBHASH AGGARWAL LD . COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE MAY BE RESTORED T O THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO DECIDE THE SAME AFRESH IN ACCORDANCE WITH LAW FOLLOWING THE RATIO LAID DOWN BY THE HON'BLE SUPREM E COURT IN THE CASE OF M/S TOPMAN EXPORTS V CIT, MUMBAI (SUPRA) AND COMPUT E THE DEDUCTION U/S 80HHC ON THE VALUE OF DEPB IN THIS CASE AS PER JUDG MENT OF THE HON'BLE SUPREME COURT REFERRED TO ABOVE. FOR STATISTICAL PU RPOSES, THE APPEALS ARE ALLOWED. 6. IN THE RESULT, BOTH THE APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 21 ST DAY OF FEBRUARY, 2012 SD/- SD/- (MEHAR SINGH) (H.L.KARWA) ACCOUNTANT MEMBER VICE PRESIDENT DATED : 21 ST FEBRUARY, 2011 RKK 4 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR TRUE COPY BY ORDER ASSISTANT REGISTRAR