M/s. Presidency Exports, Surat V. The ACIT.,Circle-2, Surat

ITA 2067/AHD/2009

• Counselvise Citation: 206720514 RSA 2009
• Duration Of Justice: 2 year(s) 9 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Next Hearing Date: 18-04-2012
• Assessment Year: 2003-2004
• Appeal Filed On: 29-06-2009
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: B L YADAV
• Assessee Lawyers: MRS URVASHI SHODHAN
• Section: 80HHC; 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH 'D' BEFORE SHRI D K TYAGI - JM AND SHRI A MOHAN ALANKAMONY - AM ITA NO.2067/AHD/2009 (ASSESSMENT YEAR:-2003-04) PRESIDENCY EXPORTS, BASEMENT, RUSHABH TEXTILE TOWER, RING ROAD, SURAT V/S THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-2, SURAT PAN: AADFP 6602 L [APPELLANT] [RESPONDENT] ASSESSEE BY :- MRS. URVASHI SHODHAN, AR REVENUE BY:- SHRI B L YADAV, SR. DR DATE OF HEARING:- 18-04-2012 DATE OF PRONOUNCEMENT:- 20-04-2012 O R D E R PER D K TYAGI (JM) :- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST AN ORDER DATED 20-04-2009 PASSED B Y LEARNED COMMISSIONER OF INCOME-TAX (APPEALS)-II, [HEREINAFT ER REFERRED TO AS THE LEARNED CIT(A)] SURAT FOR ASSESSMENT YE AR (AY) 2003-04. THE FOLLOWING TWO ISSUES ARE SUBJECT MATTE R OF THIS APPEAL:- [1] DEDUCTION U/S 80HHC ALLOWED BY THE AO BY REDUCI NG THE PROFIT OF THE BUSINESS BY ENTIRE SALE PROCEEDS OF DEPB LICENSE; AND [2] LEVY OF INTEREST U/S 234A, 234B & 234C OF THE ACT. 2 AS FAR AS THE FIRST ISSUE IS CONCERNED, THE ASSES SEE IS AGGRIEVED BY THE ACTION OF THE LEARNED CIT(A) IN CO NFIRMING THE 2 2 VIEW TAKEN BY THE AO IN REDUCING THE ENTIRE SALE PR OCEEDS OF DEPB LICENSE INSTEAD OF REDUCING ONLY PROFITS EARNE D ON TRANSFER OF DEPB LICENSE WHILE COMPUTING THE DEDUCTION U/S 8 0HHC OF THE ACT. AT THE TIME OF HEARING, THE LEARNED COUNSE L FOR THE ASSESSEE SUBMITTED THAT THE ISSUE IS NOW COVERED BY THE DECISION OF THE HONBLE APEX COURT IN THE CASE OF TOPMAN EXP ORTS VS. CIT (2012) 342 ITR 49 (SC), IN FAVOUR OF THE ASSESS EE. THE LEARNED DR DID NOT OBJECT TO THIS SUBMISSION OF THE ASSESSEES COUNSEL. THEREFORE, FOLLOWING THE SAID JUDGMENT OF THE HON'BLE SUPREME COURT, WE DECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE. 3 AS FAR AS THE SECOND ISSUE REGARDING LEVY OF INTE REST U/S 234A, 234B AND 234C IS CONCERNED, THE LEARNED COUNS EL FOR THE ASSESSEE RELYING ON THE CIRCULAR NO.2/2006, DATED 1 7-1-2006 SUBMITTED THAT NO SUCH INTEREST IS LEVIABLE. THE MA TTER IS THEREFORE RESTORED TO THE FILE OF THE AO TO RE-CALC ULATE THE INTEREST, IF ANY, U/S 234A, 234B AND 234C IN THE LI GHT OF THE ABOVE CIRCULAR. 4 IN THE RESULT, THE APPEAL IS PARTLY ALLOWED FOR S TATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT TODAY ON 20-04-2012 SD/- SD/- (A MOHAN ALANKAMONY) ACCOUNTANT MEMBER (D K TYAGI) JUDICIAL MEMBER DATE : 20-04-2012 3 3 COPY OF THE ORDER FORWARDED TO: 1. PRESIDENCY EXPORTS, BASEMENT, RUSHABH TEXTILE TO WER, RING ROAD, SURAT 2. THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-2, SURAT 3. CIT CONCERNED 4. CIT(A)-II, SURAT 5. DR, ITAT, AHMEDABAD BENCH-D, AHMEDABAD 6. GUARD FILE BY ORDER DEPUTY REGISTRAR ASSISTANT REGISTRAR ITAT, AHMEDABAD