JT. CIT - 9(1), MUMBAI V. M/s. GHARDA CHEMICALS LTD., MUMBAI

ITA 2747/MUM/2006

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 59761 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 8 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-01-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: L
• Next Hearing Date: 13-10-2011
• Assessment Year: 2002-2003
• Appeal Filed On: 04-05-2006
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JI TENDRA YADAV
• Section: 80HHC; 115JB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL L BENCH, MUMBAI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER, A ND SHRI VIJAY PAL RAO, JUDICIAL MEMBER ITA NO. 2747/MUM./2006 (ASSESSMENT YEAR : 2002-03 ) JT. COMMISSIONER OF INCOME TAX CIRCLE-9(1), AAYAKAR BHAVAN 101, M.K. ROAD, MUMBAI 400 020 .. APPELLANT V/S M/S. GHARDA CHEMICALS LTD. 48, GHARDA HOUSE, HILL ROAD BANDRA (W), MUMBAI 400 050 PAN AAACG1255E .... RESPONDENT REVENUE BY : MR. JITENDRA YADAV ASSESSEE BY : MRS. VASANTI PATEL A/W MR. R.C. PATIL DATE OF HEARING 23.01.2012 DATE OF ORDER 25.01.2012 O R D E R PER J. SUDHAKAR REDDY, A.M. THIS APPEAL PREFERRED BY THE REVENUE, IS DIRECTED AGAINST THE IMPUGNED ORDER DATED 7 TH FEBRUARY 2006, PASSED BY THE COMMISSIONER (APPEALS)-IX, MUMBAI, FOR ASSESSMENT YEAR 2002-03. 2. THE TRIBUNAL HAD, VIDE ITS ORDER DATED 16 TH JULY 2010, DISMISSED THE GROUND RAISED BY THE ASSESSEE WHICH RELATES TO COMP UTATION OF BOOK PROFITS UNDER SECTION 115JB OF THE INCOME TAX ACT, 1961 (FO R SHORT THE ACT ), WITH REFERENCE TO CLAIM OF DEDUCTION UNDER SECTION 80HHC OF THE ACT. THEREAFTER, THE ASSESSEE FILED A MISC. APPLICATION BEARING NO.6 59/MUM./2010, AND THE M/S. GHARDA CHEMICALS LTD. ITA NO.2747/M/2006 2 TRIBUNAL, VIDE ITS ORDER DATED 20 TH FEBRUARY 2011, RECALLED THE SAID GROUND IN VIEW OF THE HON'BLE SUPREME COURT JUDGMENT IN AJANT A PHARMA, 327 ITR 305 (SC). THUS, THIS APPEAL COMES BEFORE US FOR THE LIM ITED PURPOSE OF ADJUDICATING GROUND NO.4. ACCORDINGLY, WE NOW PROCE ED TO DECIDE GROUND NO.4, OF THIS APPEAL. 3. BOTH PARTIES AGREE BEFORE US THAT THE ISSUE STANDS COVERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE BY THE JUDGME NT OF LARGER BENCH OF THE HON'BLE SUPREME COURT IN CIT V/S BHARI INFORMAT ION TECHNOLOGY SYSTEMS PVT. LTD., (2012) 17 TAXMAN.COM (SC). THE VIEW OF T HE TRIBUNAL THAT DEDUCTION CLAIMED UNDER SECTION 80HHC HAD TO BE WOR KED OUT ON THE BASIS OF ADJUSTED BOOK PROFIT UNDER SECTION 115JA AND NOT ON THE BASIS OF PROFITS COMPUTED UNDER REGULAR PROVISIONS OF LAW APPLICABLE TO COMPUTATION OF PROFITS AND GAINS OF THE BUSINESS, HAS BEEN UPHELD BY THE SUPREME COURT. RESPECTFULLY FOLLOWING THIS JUDGMENT, THE GROUND RA ISED BY THE REVENUE IS DISMISSED. 4. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH JANUARY 2012 SD/- VIJAY PAL RAO JUDICIAL MEMBER SD/- J. SUDHAKAR REDDY ACCOUNTANT MEMBER MUMBAI, DATED: 25 TH JANUARY 2012 COPY TO : (1) THE ASSESSEE; (2) THE RESPONDENT; (3) THE CIT(A), MUMBAI, CONCERNED; (4) THE CIT, MUMBAI CITY CONCERNED; (5) THE DR, L BENCH, ITAT, MUMBAI. TRUE COPY BY ORDER PRADEEP J. CHOWDHURY ASSISTANT REGISTRAR SR. PRIVATE SECRETARY ITAT, MUMBAI BENCHES, MUMBAI