The ACIT, Vapi Circle, Vapi V. M/s. Paras Motors Mfg.Co., Daman

ITA 2001/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0109 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 08-11-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 25-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAYANT JAVERI
• Assessee Lawyers: HEMANT BAHEDIA
• Section: 80IB

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI S.S. GODARA, JUDICIAL MEMBER REVENUE BY : SHRI JAYANT JAVERI, SR DR ASSESSEE BY : SHRI HEMANT BAHEDIA, AR / DATE OF HEARING : 08/11/2016 / DATE OF PRONOUNCEMENT: 10/11/2016 / O R D E R PER N.K. BILLAIYA, ACCOUNTANT MEMBER: ITA NOS. 2001/AHD2013 AND 2093/AHD/2013 ARE CROSS A PPEALS BY THE REVENUE AND THE ASSESSEE PREFERRED AGAINST THE ORDE R OF THE CIT(A), VALSAD DATED 31.05.2013 PERTAINING TO AY 2010-11 AND ITA N O.2867/AHD/2014 IS APPEAL BY THE REVENUE PREFERRED AGAINST THE ORDER O F THE CIT(A), VALSAD DATED 04.09.2014 PERTAINING TO AY 2011-12. THESE B UNCH OF APPEALS WERE HEARD TOGETHER AS THEY INVOLVED COMMON ISSUES AND T HEREFORE, DISPOSED OF BY THIS COMMON ORDER FOR THE SAID OF CONVENIENCE. 2. THE REVENUE IN ITS APPEAL HAS ALLEGED THAT THE C IT(A) ERRED IN DIRECTING THE AO NOT TO EXCLUDE THE SCRAP INCOME FR OM THE PROFIT ELIGIBLE FOR DEDUCTION U/S 80IB OF THE ACT AND THE REVENUE IS FU RTHER AGGRIEVED BY THE DIRECTION OF THE CIT(A) NOT TO EXCLUDE THE EXCHANGE RATE DIFFERENCE FROM THE PROFIT ELIGIBLE FOR DEDUCTION U/S 80IB OF THE ACT. SN ITA NO. AY APPELLANT RESPONDENT 1 2001/AHD/2013 2010-11 ACIT, VAPI CIRCLE, VAPI M/S. PARAS MOTOR MFG CO. PLOT NO.43/8, DAMAN INDUSTRIAL ESTATE, SOMNATH, DAMAN PAN : AADFP 2489 B 2 2093/AHD/2013 2010-11 ASSESSEE REVENUE 3 2867/AHD/2014 2011-12 REVENUE ASSESSEE ITA NOS. 2001 & 2093/AHD/2013 & 2867/AHD/2014 ASSESSEE - PARAS MOTOR MFG CO. AYS 2010-11 & 2011-12 2 3. THE GRIEVANCE OF THE ASSESSEE RELATES TO THE DIS ALLOWANCE OF INTEREST INCOME AS NOT ELIGIBLE FOR DEDUCTION U/S 80IB OF TH E ACT. 4. AT THE VERY OUTSET, THE LD. COUNSEL FOR THE ASSE SSEE STATED THAT THE ISSUES INVOLVED IN REVENUES APPEALS AS WELL AS ASS ESSEES APPEAL ARE SQUARELY COVERED IN FAVOUR OF THE ASSESSEE AND AGAI NST THE REVENUE BY THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE GIV EN IN EARLIER YEARS. THE DR FAIRLY CONCEDED TO THIS. 5. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE AUTH ORITIES BELOW. WE FIND FORCE IN THE CONTENTION OF THE LD. COUNSEL. 6. INSOFAR AS THE INCLUSION OF THE SCRAP SALE FOR D EDUCTION U/S 80IB(4) OF THE ACT IS CONCERNED, THE CO-ORDINATE BENCH HAS DEC IDED THIS ISSUE IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE IN ITA NO.3 585/AHD/2007 FOR AY 2005-06, IN ITA NO.1618/AHD/2009 FOR AY 2006-07 AND IN ITA NO.2236/AHD/2010 FOR AY 2007-08. RESPECTFULLY FOLL OWING THE FINDINGS OF THE CO-ORDINATE BENCH IN THE CASE OF THE ASSESSEE, WE DECLINE TO INTERFERE WITH THE FINDINGS OF THE CIT(A). THIS GROUND IS DE CIDED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. 7. INSOFAR AS THE INCLUSION OF EXCHANGE RATE DIFFER ENCE FOR THE PROFIT ELIGIBLE FOR DEDUCTION U/S 80IB OF THE ACT IS CONCE RNED, WE FIND THAT THE CO- ORDINATE BENCH IN ASSESSEES OWN CASE IN ITA NO.268 2/AHD/2010 AND 2755/AHD/2010 HAD THE OCCASION TO CONSIDER A SIMILA R ISSUE AND THE CO- ORDINATE BENCH VIDE ORDER DATED 20.05.2011 HAS DECI DED THIS ISSUE IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. RESPECTFU LLY FOLLOWING THE FINDINGS OF THE CO-ORDINATE BENCH, THIS GROUND IS A LSO DECIDED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. 8. INSOFAR AS THE NON-INCLUSION OF INTEREST INCOME FROM ELIGIBILITY FOR DEDUCTION U/S 80IB OF THE ACT IS CONCERNED, WE FIND THAT THE CO-ORDINATE ITA NOS. 2001 & 2093/AHD/2013 & 2867/AHD/2014 ASSESSEE - PARAS MOTOR MFG CO. AYS 2010-11 & 2011-12 3 BENCH IN ITA NO.875/AHD/2012 AND 1079/AHD/2012 IN A Y 2009-10 HAD THE OCCASION TO CONSIDER AN IDENTICAL ISSUE AND HAS HEL D AS UNDER:- .. WE ARE OF THE CONSIDERED VIEW THAT THE ASSESSE E LIKEWISE IS ENTITLED FOR THE BENEFIT OF DEDUCTION U/S 80IB OF THE I.T. ACT O N SUCH INTEREST INCOME WHICH HAD A DIRECT NEXUS WITH THE BUSINESS/INDUSTRI AL ACTIVITY OF THE ASSESSEE. RESULTANTLY, THIS GROUND OF THE ASSESSEE IS ALLOWED . RESPECTFULLY FOLLOWING THE FINDINGS OF THE CO-ORDIN ATE BENCH, WE ALLOW THIS GROUND IN FAVOUR OF THE ASSESSEE AND AGA INST THE REVENUE. 9. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE DISMISSED AND THAT OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 10 TH NOVEMBER, 2016 AT AHMEDABAD. SD/- SD/- (S.S. GODARA) JUDICIAL MEMBER (N.K. BILLAIYA) ACCOUNTANT MEMBER AHMEDABAD; DATED 10/11/2016 BIJU T., PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ! / CONCERNED CIT 4. ! ( ) / THE CIT(A ) 5. $ '' , , / D R, ITAT, AHMEDABAD 6. - / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD