LAHOTI OVERSEAS LTD, MUMBAI V. DCIT 5(2), MUMBAI

ITA 2180/MUM/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 8580 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2001-2002
• Appeal Filed On: 18-03-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S K PAHWA
• Assessee Lawyers: AJIT SHETTY
• Section: 143(3); 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH A MUMBAI BEFORE SHRI R.S. SYAL (AM) AND SMT ASHA VIJAYARAGHA VAN (JM) ITA NO. 2180/MUM/2010 (ASSESSMENT YEAR-2001-02) M/S. LAHOTI OVERSEAS LTD., 307, ARUN CHAMBERS, TARDEO, MUMBAI-400 034 PAN-AAACL 2578H VS. THE DCIT 5(2), AAYAKAR BHAVAN, MUMBAI-400 020 (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI AJIT SHETTY RESPONDENT BY: SHRI S.K. PAHWA O R D E R PER ASHA VIJAYARAGHAVAN (JM) THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LD. CIT(A)-9 MUMBAI DATED 12.2.2010 FOR THE A.Y. 2 001-02. 2. THE ASSESSEE IS A PUBLIC LIMITED COMPANY AND IS A 100% EXPORTER OF WIDE RANGE OF COTTON YARN. THE ASSESSEE FILED T HE RETURN OF INCOME FOR A.Y. 2001-02 ON 25.10.2001 AND RETURNED A TOTAL INCOME OF RS. 1,24,09,770/-. THE CASE WAS SELECTED FOR SCRUTINY BY ISSUING NOTICE U/S. 143(2) ON 4.10.2002. THE INCOME WAS ASSESSED U/S. 143(3) OF THE ACT IN WHICH PROFIT ON SALE OF DEPB BENEFITS WAS DE NIED WHILE WORKING OUT DEDUCTION U/S. 80HHC FOR THE YEAR UNDER CONSIDE RATION. 3. DURING THE YEAR UNDER CONSIDERATION, THE ASSESSE E EARNED INCOME FROM SALE OF DEPB AMOUNTING TO RS. 1,51,36,8 44/- OUT OF WHICH THE ASSESSEE HAD CLAIMED 90% OF DEPB AMOUNT I .E. RS. 1,36,23,160/- IN WORKING OF DEDUCTION U/S. 80HHC. THE ASSESSING ITA NO. 2180/M/2010 2 OFFICER FOUND THAT THE PROFIT OF RS. 1,51,36,844/- ON SALE OF DEPB LICENSES AND THIS PROFIT IS NOT ELIGIBLE FOR DEDUCT ION U/S. 80HHC OF THE I.T. ACT AND EXCLUDED THIS AMOUNT WHILE COMPUTING T HE CLAIM OF THE ASSESSEE FOR DEDUCTION U/S. 80HHC. 4. AGGRIEVED BY THE ORDER OF THE AO, ASSESSEE PREFE RRED AN APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) ERRED IN CONFIRMING THE ACTION OF THE AO NOT ALLOWING DEDUCTION U/S. 80HHC ON THE PROFIT ON SALE OF DEPB AND NOT CONSIDERING THE DECISION OF THE SPECIA L BENCH OF MUMBAI ITAT IN THE CASE IF TOPMAN EXPORTS VS ITO -14(2) MUMBAI WHICH IS IDENTICAL WITH THE FACTS OF THE CAS E OF YOUR APPEALLANT. 233 CTR 313 ORDER PRONOUNCED ON THIS 31 ST DAY OF JANUARY, 2011 SD/- SD/- (R.S. SYAL) ( ASHA VIJAYARAGHAVAN) ACCOUNTANT MEMBER JUDICIAL M EMBER MUMBAI, DATED 31 ST JANUARY, 2011. RJ ITA NO. 2180/M/2010 3 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT-CONCERNED 4. THE CIT(A)-CENTRAL - I CONCERNED 5. THE DR A BENCH TRUE COPY BY ORDER ASST. REGISTRAR, I.T.A.T, MUMBAI ITA NO. 2180/M/2010 4 DATE INITIALS 1 DRAFT DICTATED ON: 2 7. 01. 201 1 SR. PS/PS 2. DRAFT PLACED BEFORE AUTHOR: 2 7. 01 .201 1 ______ SR. PS/PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER: ______ JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER: ______ JM/AM 5. APPROVED DRAFT COMES TO THE SR. PS/PS: SR. PS/ PS 6. KEPT FOR PRONOUNCEMENT ON: ______ SR. PS/PS 7. FILE SENT TO THE BENCH CLERK: ______ SR. PS/PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK: ______ 9 DATE ON WHICH FILE GOES TO THE AR 10 . DATE OF DISPATCH OF ORDER: ______