M/s. Celebrity Connections, CHENNAI V. JCIT, CHENNAI

ITA 20/CHNY/2009

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 57911 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 31-01-2012
• Assessment Year: 2004-2005
• Appeal Filed On: 05-01-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T N PRAKASH
• Assessee Lawyers: ANIL NAIR
• Section: 80HHC; 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER I.T.A. NO. 20/MDS/2009 (ASSESSMENT YEAR : 2004-05) CELEBRITY CONNECTIONS 107-A, GST ROAD CHROMPET, CHENNAI 600 044 PAN : AAACF 0724 D (APPELLANT) VS . THE JCIT RANGE -I, CHENNAI (RESPONDENT) APPELLANT BY : SHRI ANIL NAIR, C.A. , RESPONDENT BY : SHRI T.N. PRAKAS H, JCIT DATE OF HEARING : 31.1.2012 DATE OF PRONOUNCEMENT : 31.1.2012 O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY ASSESSEE FOR THE ASSESS MENT YEAR 2004-2005 AGAINST THE ORDER DATED 21.10.2008 OF COM MISSIONER OF INCOME TAX (APPEALS), CHENNAI. ITA NO.20/MDS/2009 2. THE FIRST ISSUE IN THIS APPEAL IS THAT WHILE COM PUTING DEDUCTION U/S 80HHC OF THE ACT, THE AO HAS EXCLUDED THE PROCEEDS FROM SALE OF DEPB LICENSES AMOUNTING TO RS 11,15,94 ,992/- WHICH HAS BEEN CONFIRMED BY THE LD. CIT(A). 3. AT THE OUTSET, THE LD. A.R. FOR THE ASSESSEE SHR I ANIL NAIR SUBMITTED THAT THE MATTER MAY BE RESTORED BACK TO T HE FILE OF THE AO FOR READJUDICATION AFRESH IN THE LIGHT OF THE DE CISION OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. KA LPATARU COLOURS AND CHEMICALS [2010] 328 ITR 451 [BOM]. THE LD. D. R. ALSO AGREED WITH THE SUBMISSIONS OF THE LD. A.R. 4. WE, THEREFORE, SET ASIDE THE ORDERS OF THE LOWER AUTHORITIES AND REMAND THE MATTER BACK TO THE FILE OF THE AO FO R ADJUDICATION OF THE ISSUE AFRESH IN THE LIGHT OF THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF KALPATARU COLOURS AND CHEMICALS [SUPRA]. THUS THIS GROUND OF APPEAL OF THE ASSESSE E IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO.20/MDS/2009 5. THE NEXT ISSUE IN THIS APPEAL RELATES TO CHARGIN G OF INTEREST U/S 234B AND 234C OF THE ACT. THE GRIEVANCE OF THE ASSESSEE IS THAT THE SAID CHARGE OF INTEREST IS CONTRAVENTION TO THE CBDT CIRCULAR NO. 2 OF 2006 DATED 17 TH JANUARY, 2006. AS WE HAVE ALREADY SET ASIDE THE FIRST ISSUE TO THE FILE OF THE AO FOR FRESH ADJ UDICATION, WE ALSO SET ASIDE THE ISSUE OF CHARGING OF INTEREST U/S 234 B AND 234C TO THE FILE OF THE AO WITH THE DIRECTION TO LEVY INTEREST AFTER CONSIDERING THE CBDT CIRCULAR STATED ABOVE BY PASSING A SPEAKIN G ORDER. THUS, THIS GROUND OF APPEAL IS ALSO ALLOWED FOR STATISTIC AL PURPOSES. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE H EARING IN THE PRESENCE OF THE PARTIES ON 31 ST JANUARY, 2012. SD/- SD/- (GEORGE MATHAN) (N.S. SAI NI) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 31 ST JANUARY, 2012. ITA NO.20/MDS/2009 VL COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT(A), CHENNAI (4) CIT, CHENNAI (5) D.R. (6) GUARD FILE