ITO, New Delhi V. M/s. Namo Alloys Pvt. Ltd., Delhi

ITA 2233/DEL/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81907 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2014
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: E
• Next Hearing Date: 15-10-2014
• Assessment Year: 2004-2005
• Appeal Filed On: 16-04-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VED JAIN CA SMT RANO JAIN
• Assessee Lawyers: J P CHANDO A KER

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E : NEW DELHI BEFORE SHRI R.S.SYAL, ACCOUNTANT MEMBER AND SHRI R.P.YADAV , JUDICIAL MEMBER ITA NO. 2233 /DEL/20 1 3 ASSESSMENT YEAR : 2004 - 05 ITO VS. NAMO AL LOYS PVT. LTD. WARD - 13(1), 3721 - GALI BARNA ROOM NO. 219 SADAR BAZAR NEW DELHI NEW DELHI AAAPC7015J (APPELLANT) (RES PONDENT) C.O. NO. 200/DEL/2014 (IN ITA NO. 2233/DEL/2013) NAMO ALLOYS PVT. LTD. VS. ITO 3721 - GALI BARNA WARD 13(1), SADAR BAZAR ROOM NO. 219 NEW DELHI NEW DELHI AAAPC7015J (APPELLANT) (RESPONDENT) APPELLANT BY : S H. VED JAIN, CA SMT. RANO . JAIN ADV. RESPONDENT BY : SH. J.P.CHANDO A KER , SR. DR O R D E R PER R.S.SYAL, A .M. THIS APPEAL BY THE R EVENUE AND C R OSS O BJECTION BY THE ASSESSEE ARISE OUT OF THE ORDER PASSED BY THE CIT(A) ON 30.01.2013 IN RELATION TO THE ASSESSMENT YEAR 2004 - 05. ITA N O. 2233/ D/20 1 3 2 2. THE FIRST GROUND OF THE R EVENUE S APPEAL IS AGAINST ALLOWING OF DEDUCTION U/S 80 - IB ON C ONVERSION CHARGES FROM JOB WORK AMOUNTING TO RS. 20,10,241/ - 3 . BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER INITIATED RE - ASSESSMENT PROCEEDINGS ON THE GROUND THAT THE ASSESSEE HAS CLAIMED EX CESS DEDUC TION U/S 80 - IB, INTER ALIA, ON C ONVERSION CHA RGES AMOUNTING TO RS. 20.10 LACS. IN THE ASSESSMENT ORDER SO PASSED, THE ASSESSING OFFICER DID NOT ALLOW DEDUCTION U/S 80 - IB ON THIS AMOUNT. THE LD. CIT(A) OVER TURNED THE ASSES SMENT ORDER ON THIS POINT. THE R EVENUE IS AGGRIEVED AGAINST THE GRANTING OF DED UCTION ON THIS AMOUNT. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON THE RECORD. IT IS NOTICED THAT SIMILAR ISSUE CAME UP FOR CONSIDERATION BEFORE THE TRIBUNAL IN ASSESSEE S O W N CASE FOR THE A.Y. 2008 - 09. VIDE ITS ORDER DATED 12.10.2012 I N ITA NO. 1482/D/2012, THE TRIBUNAL ACCEPTED THE ASSESSE S CLAIM FOR ALLOWING OF DEDUCTION U/S 80 IB ON C ONVERSION CHARGES. IN THE ABSENCE OF ANY DISTINGUISHING FEATURE HAVING BEEN BROUGHT TO OUR NOTICE, RESPECTFULLY FOLLOWING THE PRECED ENT , WE UPHOLD THE IMPUGNED ORDER ON THIS SCORE. THIS GROUND IS NOT ALLOWED. 5. THE ONLY OTHER GROUND IN THE R EVENUE S APPEAL IS AGAINST THE GRANT OF DEDUCTION U/S 80 IB ON I NTEREST INCOME . THE LD. AR WAS FAIR ENOUGH TO ACCEPT THAT THE AMOUNT OF IN TEREST INCOME IS NOT ELIGIBLE FOR DEDUCTION U/S 80 IB. HIS ONLY PRAYER WAS TO LIMIT THE EXTE NT OF DISA LLOWANCE TO THE ` NET INTEREST INSTEAD OF THE GROSS AMOUNT OF INTEREST CONSIDERED BY THE AO . WE FIND MERIT IN THE CONTENTION MADE. IT IS OBVIOUS THAT THE DEDUCTION WILL BE DENIED ON THE INTEREST INCOME WHICH IS NET AND NOT GROSS. THE IMPUGNED ORDER IS, THEREFORE, ITA N O. 2233/ D/20 1 3 3 SET ASIDE AND THE MATTER IS RESTORED TO THE FILE OF AO FOR NOT ALLOWING THE DEDUCTION U/S 80 IB ON THE INTEREST INCOME ON NET BASIS. 6 . T HE CROSS OBJECTION OF TH E ASSESSEE TO THE EXT E NT IT CHALLENGES THE INITIATION OF RE ASSESSMENT PROCEEDINGS , WAS NOT PRESSED BY THE LD. AR. THE OTHER GROUNDS ARE COMMON TO THE GROUNDS RAISED BY THE R EVENUE BU T SUPPORTING THE IMPUGNED ORDER. SINCE, WE HAVE R ENDERED DECISION ON THE R EVENUE S GROUNDS ON MERITS, THESE GROUNDS TAKEN BY THE ASSESSEE IN ITS CROSS OBJECTION HAVE BE EN RENDERED AS INFRUCTUOUS. 7 . IN THE RESULT THE APPEAL OF THE R EVENUE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES AND THE CO OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16/10/2014. SD/ - ( R.P.YADAV ) JUDICIAL MEMBER SD/ - ( R.S.SYAL ) ACCOUNTANT MEMBER DATED: 16.10.14 B .RUKHAIYAR COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI. BY ORDER DEPUTY REGISTRAR *