DCIT, CHENNAI V. M/s. P.A.Footwear Pvt. Ltd., CHENNAI

ITA 2022/CHNY/2010

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7440 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-03-2012
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 01-03-2012
• Assessment Year: 2003-2004
• Appeal Filed On: 01-12-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: S SRIDHAR
• Section: 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER I.T.A. NO. 2022/MDS/2010 (ASSESSMENT YEAR : 2003-04) THE DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE V(1), CHENNAI - 600 034 . (APPELLANT) V. M/S P.A. FOOTWEAR PVT. LTD., NO.1031 A, 44 TH STREET, TVS COLONY, CHENNAI - 600 101. PAN : AAACP1923G (RESPONDENT) APPELLANT BY : SHRI ANIRUDH RAI, CIT-DR SHRI K.E.B. RENGARAJAN, JUNIOR STANDING COUNSEL RESPONDENT BY : SHRI S. S RIDHAR, ADVOCATE DATE OF HEARING : 01.03.2012 DATE OF PRONOUNCEMENT : 01.03.2012 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : IN THIS APPEAL FILED BY THE REVENUE, ITS GRIEVANC E IS THAT THE CIT(APPEALS) DIRECTED THE ASSESSING OFFICER TO MAKE AN ADDITION TO THE DEDUCTIBLE AMOUNT AS PER PROVISO TO SECTION 80H HC(3) OF INCOME-TAX ACT, 1962 (IN SHORT 'THE ACT') OF 90% OF THE EXPORT INCENTIVES. AS PER THE REVENUE, SUCH AN ADDITIONAL DEDUCTION COULD I.T.A. NO. 2022/MDS/10 2 HAVE BEEN GIVEN TO THE ASSESSEE ONLY IF ASSESSEE HA D EXERCISED AN OPTION AS PER CLAUSE (A) TO PROVISO TO SECTION 80HH C(3) OF THE ACT. 2. WHEN THE MATTER CAME UP, LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT TREATMENT OF DEPB BENEFITS AND HOW S UCH DEPB BENEFITS ARE TO BE CONSIDERED FOR WORKING OUT DEDUC TION UNDER SECTION 80HHC(3) OF THE ACT HAVE BEEN CLEARLY LAID DOWN BY THE HONBLE APEX COURT RECENTLY. LD. COUNSEL PLACED BEFORE US THE J UDGMENT OF HONBLE APEX COURT IN THE CASE OF TOPMAN EXPORTS V. CIT IN CIVIL APPEAL NO.1699 OF 2012 DATED 8 TH FEBRUARY, 2012. 3. LEARNED D.R. FAIRLY AGREED THAT THE DECISION OF HONBLE APEX COURT WAS NOT AVAILABLE WITH THE LOWER AUTHORITIES WHEN THIS ISSUE WAS DECIDED BY THEM. THEREFORE, ACCORDING TO HIM, THE MATTER REQUIRED A RE-VISIT BY THE ASSESSING OFFICER. 4. WE HAVE PERUSED THE ORDERS AND HEARD THE RIVAL SUBMISSIONS. THE ISSUE RAISED BY THE REVENUE IN THIS APPEAL IS R EGARDING THE CLAIM OF THE ASSESSEE WITH REGARD TO DEPB BENEFITS UNDER SECTION 80HHC(3) OF THE ACT. TREATMENT OF DEPB BENEFITS AT THE TIME OF MAKING THE CLAIM, AND AT THE TIME OF SALE OF SUCH D EPB LICENCES WERE ALL CONSIDERED BY HONBLE APEX COURT IN THE CASE OF TOPMAN EXPORTS (SUPRA) IN RELATION TO THE DEDUCTION UNDER SECTION 80HHC OF THE ACT. I.T.A. NO. 2022/MDS/10 3 NONE OF THE LOWER AUTHORITIES HAD THE BENEFIT OF TH E WISDOM OF THE HONBLE APEX COURTS DECISION WHEN THEY WERE DECIDI NG THE ISSUE. WE ARE, THEREFORE, OF THE OPINION THAT THE MATTER R EQUIRES A RE-VISIT BY THE ASSESSING OFFICER. WE, THEREFORE, SET ASIDE TH E ORDER OF AUTHORITIES BELOW IN THIS REGARD AND REMIT IT BACK TO THE ASSESSING OFFICER FOR CONSIDERING THE CLAIM OF THE ASSESSEE F OR DEDUCTION UNDER SECTION 80HHC(3) OF THE ACT WITH REGARD TO DEPB BEN EFITS, IN ACCORDANCE WITH DECISION OF HONBLE APEX COURT IN T HE CASE OF TOPMAN EXPORTS (SUPRA) AS WELL AS RELEVANT PROVISIO NS OF LAW. ORDERED ACCORDINGLY. 5. IN THE RESULT, APPEAL FILED BY THE REVENUE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 1 ST MARCH, 2012. SD/- SD/- (VIKAS AWASTHY) (ABRAHAM P. GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 1 ST MARCH, 2012. KRI. COPY TO: APPELLANT/RESPONDENT/CIT(A)-V, CHENNAI-34 / CIT, CHENNAI-III, CHENNAI/D.R./GUARD FILE