Linen Rugs, V. ACIT, Panipat

ITA 2668/DEL/2008

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 1264 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-11-2009
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 12-11-2009
• Assessment Year: 2005-2006
• Appeal Filed On: 08-08-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B K GUPTASR
• Section: 80IB; 207

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH : D NEW DELHI) BEFORE SHRI C.L. SETHI, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER I.T.A. NO.2668/DEL./2008 (ASSESSMENT YEAR : 2005-06) LINES RUGS, VS. ACIT, PANIPAT. 193, GREEN PARK, TEHSIL TOWN, PANIPAT. (PAN/GIR NO.AABFL7685B) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI BASANT KUMAR, ADV. REVENUE BY : SHRI B.K. GUPTA,SR.DR ORDER PER A.K. GARODIA, AM THIS IS AN ASSESSEE S APPEAL DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS), KARNAL DATED 3.6.2008 FOR ASSE SSMENT YEAR 2005-06. THE GROUNDS RAISED BY THE ASSESSEE READ AS UNDER: 1. THAT THE CIT(A),KARNAL HAS WRONGLY HELD THAT DU TY DRAWBACK DOES NOT CONSTITUTE PROFIT AND GAINS DERIVED FROM ASSESSEE I NDUSTRIAL UNDERTAKING ELIGIBLE FOR RELIEF U/S 80IB. THEREFORE, CIT(A) HA S WRONGLY UPHELD ORDER OF ACIT, PANIPAT IN DISALLOWING DEDUCTION U/S 80IB ON DUTY DRAWBACK RECEIVED BY ASSESSEE. 2. THAT THE IMPUGNED ORDER BE QUASHED TO THE ABOVE EXTENT AND ASSESSEE BE ALLOWED RELIEF IN FORM OF ALLOWING DEDUCTION U/S 80 IB AMOUNTING TO RS.1138347/- AS CLAIMED IN RETURN OF INCOME. 2. BRIEF FACTS ARE THAT THE ASSESSEE IS AN EXPORTER WHO DERIVES INCOME FROM THE MANUFACTURE AND EXPORT OF HANDLOOM GOODS. DURING THIS YEAR, THE ASSESSEE HAS RECEIVED CASH INCENTIVE ON ACCOUNT OF DUTY DRAWBACK OF RS.63 44817/-. THE ASSESSEE HAS CLAIMED THAT DUTY DRAWBACK IS PART OF EXPORT PROCEEDS OR AL TERNATIVELY IT MAY BE REDUCED FROM THE COST OF GOODS MANUFACTURED BECAUSE ITS RETURN OF TH E DUTY PAID AND, THEREFORE, THE ASSESSEE CLAIMED DEDUCTION U/S 80IB ON THE AMOUNT OD DUTY DR AWBACK ALSO. THIS CLAIM OF THE ASSESSEE WAS REJECTED BY THE ASSESSING OFFICER BY F OLLOWING TRHE JUDGMENT OF HONBLE APEX COURT, RENDERED IN THE CASE OF CIT VS. STERLIN G FOODS, 237 ITR 579 (SC). THE ASSESSING OFFICER ALSO FOLLOWED THE JUDGMENT OF HON BLE PUNJAB & HARYANA HIGH COURT RENDERED IN THE CASE OF LIBERTY INDIA VS. CIT, 207 CTR 243. BEING AGGRIEVED, ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE COMMISSIONE R OF INCOME-TAX (APPEALS), BUT WITHOUT SUCCESS AND NOW THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 3. IT IS FAIRLY CONCEDED BY THE LD.AR OF ASSESSEE T HAT THIS ISSUE IS NOW COVERED AGAINST THE ASSESSEE BY THE JUDGMENT OF THE HONBLE APEX COURT IN THE CASE OF LIBERTY INDIA VS. CIT, REPORTED IN 317 ITR 218 (SC). RESPE CTFULLY FOLLOWING THIS JUDGMENT OF HONBLE APEX COURT, BOTH THE GROUNDS RAISED BY THE ASSESSEE ARE REJECTED. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. 5. ORDER PRONOUNCED IN OPEN COURT ON 12 TH NOVEMBER, 2009 AFTER CONCLUSION OF THE HEARING SD/- SD/- (C.L. SETHI) (A.K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: NOV. 12, 2009. *SKB* COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A),KARNAL. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. AR/ITAT