ITO 9(3)(3), MUMBAI V. G JAWELCRAFT LTD, MUMBAI

ITA 2128/MUM/2015

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2166 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 10-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VISHWAS JADHAV
• Assessee Lawyers: APURVA R SHAH
• Section: 10B

Judgement Text

- IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI , BEFORE SHRI SANJAY ARORA , A M ./ I.T.A. NO. 2128/MUM/2015 ( / ASSES SMENT YEAR: 2011 - 12 ) ITO - 9(3)(3), ROOM NO. 471, 4 TH FLOOR, AAYAKAR BHAVAN, M. K. ROAD, MUMBAI - 400 020 / VS. G. JWEL C RAFT LTD. UNIT NO. 005, BLOCK NO. - 2, SEEPZ ANDHERI (E), MUMBAI - 400 096 ./ ./ PAN/GIR NO. AADCM 8811 H ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI VISHWAS JADHAV / RESPONDENT BY : SHRI APURVA R. SHAH / DATE OF HEARING : 30.11.2015 / DATE OF PRONOUNCEMENT : 3 0 .11.2015 / O R D E R PER SANJAY ARORA, A. M.: THIS IS AN A PPEAL BY THE REVENUE DIRECTED AGAINST THE ORDER BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 16 , MUMBAI (CIT(A) FOR SHORT) DATED 08.12.2014 , PARTLY ALLOWING THE A SSESSEES APPEAL CONTESTIN G ITS ASSESSMENT U/S.143(3) OF THE INCOME TAX ACT, 1961 (THE ACT HEREINAFTER) FOR THE ASSESSMENT YEAR (A.Y.) 2011 - 12 VIDE ORDER DATED 14.8.2013 . 2. THE ONLY ISSUE IN THIS APPEAL IS IF THAT THE ASSESSEES INCOME, TO THE EXTENT IT IS COMPRISED OF THE PROF IT FROM ITS UNIT LOCATED IN SPECIAL ECONOMIC ZONE (SEZ) , STANDS 2 ITA NO. 2128/ MUM/2015 (A.Y. 2011 - 12) ITO VS. G. JWELCRAFT LTD. RIGHTLY EXEMPT FROM THE PROVISIONS OF CHAPTER XII - B OF THE ACT TITLED S PECIAL PROVISIONS RELATING TO CERTAIN COMPANIES , SEEKING TO TAX BOOK PROFIT UNDER SPECIFI ED CIRCUMSTANCES. THE ASSESSEE S INCOME FOR THE YEAR WAS DETERMINED BY THE ASSESSING OFFICER (A.O.) AT RS.11.38 LACS. HOWEVER, AS A TAX ON THE BOOK PROFIT U/S.115 - JB (RS.23.64 LACS) WAS HIGHER, THE A.O. LEVIED TAX THERE - UNDER. THE LD. CIT(A) ALLOWED THE ASSESSEE RELIEF FOLLOWING THE OR DER BY THE TRIBUNAL IN ITS OWN CASE FOR A.Y. 2009 - 10 ( IN ITA NO. 5087/MUM/2012 DATED 14.11.2014). AGGRIEVED, THE REVENUE IS IN APPEAL. 3. BEFORE THE BENCH, WHILE THE LD. DEPARTMENTAL REPRESENTATIVE (DR) RELIED ON THE ASSESSMENT ORDER, T HE LD. AUTHORIZED REPRESENTATIVE (AR), THE ASSESSEES COUNSEL , WOULD ON THAT BY THE TRIBUNAL (SUPRA), PLACING A COPY OF THE SAME ON RECORD. 4. THE PARTIES HAVE BEEN HEARD, AND THE MATERIAL ON RECORD PERUSED. THE ORDER BY THE TRIBUNAL IN THE ASSESSEES CASE STANDS PERUSE D. VIDE THE SAME THE D IVISION B ENCH OF THIS TRIBUNAL HAS FOLLOWED THE ORDER BY THE CO - ORDINATE BENCH IN GENE SYS INTERNATIONAL CORPORATION LTD. VS. ASST. CIT (IN ITA NO. 6903/MUM/2011 AND 609/MUM/2012 DATED 31.10.2012), ALSO REPRODUCING THERE - FROM AT PARA 8 OF ITS ORDER. THE REVENUES PLEA THAT THE EXCEPTION U/S.115JB(6) IS AVAILABLE ONLY IN RESPECT OF THE PROFIT EXEMPT U/S.10AA, AND NOT THAT FALLING U/S S .10A AND 10B OF CHAPTER III OF THE ACT, I N VIEW OF CLAUSE (F) OF EXPLANATION 1 TO SECTION 115JB(2), STAND S ALSO CONSIDERED BY THE TRIBUNAL. THE ASSESSEES INCOME, TO THE EXTEN T EXEMPT U/S.10A, WAS ACCORDINGLY HELD TO BE NOT SUBJECT TO MINIMUM PROFIT TAX U/S.115JB IN VIEW OF SECTION 115B(6) OF THE ACT. RESPECTFULLY FOLLOWING THE CONSISTENT VIEW OF THE TRIBUNAL IN THE MATTER , THE ASSESSEES INCOME FOR THE YEAR , TO THE EXTENT IT RELATES TO THE PROFIT OF ITS SEZ UNIT, IS LIABLE TO B E EXEMPT FROM BOOK PROFIT TAX U/S.115JB(6) OF THE ACT. THE FACT THAT THE REVENUE HAS CARRIED T HE MATTER IN APPEAL BEFORE THE H ONBLE HIGH COURT WOULD, IN MY VIEW, BE OF NO CONSEQUENCE AS FAR AS THE DECISION ON MERITS IS CONCERNED. I DECIDE ACCORDINGLY. 3 ITA NO. 2128/ MUM/2015 (A.Y. 2011 - 12) ITO VS. G. JWELCRAFT LTD. 5. IN THE RESULT, THE R EVENUE S APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON NOVEMBER 3 0 , 201 5 SD/ - (S ANJAY ARORA) / A CCOUNTANT MEM BER MUMBAI ; DATED : 3 0 . 11 .201 5 . . ./ ROSHANI , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F ILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI