M.J. FAMILY TRUST, MUMBAI V. ACIT CEN CIR 41, MUMBAI

ITA 2548/MUM/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 7944 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 01-04-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SU RENDRA KUMAR
• Assessee Lawyers: AARTI A SATHE
• Keywords: Business income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI BEFORE SHRI R.S.SYAL, AM AND SMT.ASHA VIJAYARAGHAVA N, JM ITA NO.2548/MUM/2010 : ASST.YEAR 2006-2007 M/S.M.J.FAMILY TRUST C/O.LOTUS WIRES & CABLE, 33 HUGES 3 RD FLOOR, OPP. PREMPURI ASHRAM N.S.PATKAR MARG, GRANT ROAD (WEST) MUMBAI 400 007. PAN : AAATM5000C. VS. THE ASSTT.COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE 41 MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : MS.AARTI A.SATHE RESPONDENT BY : SHRI SURENDRA KUMAR O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSED BY THE CIT(A) ON 25.02.2009 IN RELATION TO ASSESSMENT YEAR 2006-2007 . 2. GROUND NOS. 1 AND 2 ARE AGAINST NOT GRANTING OF DEDUCTION U/S.80IB(4) AND 80IC AMOUNTING TO RS.3,13,444 AND RS.3,825 IN RESPE CT OF INTEREST RECEIVED ON BANK FDRS TAXED BY THE AUTHORITIES UNDER THE HEAD INCOME FROM OTHER SOURCES INSTEAD OF BUSINESS INCOME AS CLAIMED BY THE ASSE SSEE. 3. AT THE VERY OUTSET THE LEARNED COUNSEL FOR THE A SSESSEE PLACED ON RECORD A COPY OF THE ORDER PASSED BY THE TRIBUNAL IN ITS OWN CASE FOR ASSESSMENT YEAR 2004- 2005 DISMISSING SUCH GROUNDS BY FOLLOWING THE JUDGE MENT OF THE HONBLE SUPREME COURT IN THE CASE OF LIBERTY INDIA VS. CIT [(2009) 317 ITR 218 (SC)]. AS THE FACTS AND CIRCUMSTANCES OF THESE TWO GROUNDS ARE ADMITTED LY SIMILAR TO THOSE ALREADY CONSIDERED AND DECIDED BY THE TRIBUNAL IN ASSESSMEN T YEAR 2004-2005, RESPECTFULLY FOLLOWING THE SAME, WE UPHOLD THE IMPUGNED ORDER TO THIS EXTENT. THESE GROUNDS ARE NOT ALLOWED. ITA NO.2548/MUM/2010 M/S.M.J.FAMILY TRUST. 2 4. GROUND NO.3 IS AGAINST THE CONFIRMATION OF DISAL LOWANCE OF DEDUCTION U/S.80IB(4) IN RESPECT OF SCRAP SALES OF RS.41,256 FOR THE DAMAN UNIT- III. THE LEARNED COUNSEL FOR THE ASSESSEE INVITED OUR ATTENT ION TOWARDS THE AFORENOATED TRIBUNAL ORDER FOR ASSESSMENT YEAR 2004-2005 WHEREI N SUCH ISSUE HAS BEEN DECIDED IN ASSESSEES FAVOUR. RELEVANT DISCUSSION IS IN PA RAS 4 TO 6 OF THE TRIBUNAL ORDER. THE LEARNED DEPARTMENTAL REPRESENTATIVE FAIRLY CONC EDED THAT THE FACTS AND CIRCUMSTANCES OF THE GROUND IN THIS YEAR ARE SIMILA R TO THOSE ALREADY CONSIDERED AND DECIDED BY THE TRIBUNAL. RESPECTFULLY FOLLOWING THE SAME, THIS GROUND IS ALLOWED. 5. THE LAST GROUND IS AGAINST THE CONFIRMATION OF D ISALLOWANCE OF DEDUCTION U/S.80IC IN RESPECT OF SCRAP SALES OF RS.3,52,691 F OR HARIDWAR BRANCH. HERE AGAIN BOTH THE SIDES ARE IN AGREEMENT THAT THE ASSESSEE D ESERVES TO SUCCEED ON THIS ISSUE IN VIEW OF THE DECISION TAKEN BY THE TRIBUNAL IN AS SESSMENT YEAR 2004-2005 GRANTING DEDUCTION ON SCRAP SALE U/S.80IB(4). THE L EARNED DEPARTMENTAL REPRESENTATIVE FAIRLY CONCEDED THAT THERE WAS NO MA TERIAL DIFFERENCE IN THE LANGUAGE OF SECTION 80IB(4) AND 80IC INSOFAR AS THE CLAIM OF DEDUCTION ON SCRAP SALES WAS CONCERNED. WE, THEREFORE, ALLOW THIS GROU ND OF APPEAL. 6. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. ORDER PRONOUNCED ON THIS 25 TH DAY OF MARCH, 2011 . SD/- SD/- (ASHA VIJAYARAGHAVAN) (R.S.SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI : 25 TH MARCH, 2011. DEVDAS* ITA NO.2548/MUM/2010 M/S.M.J.FAMILY TRUST. 3 COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A) CENTRAL III, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.