The DCIT, Circle-4, Ahmedabad V. Khyati Chemicals Pvt. Ltd., Ahmedabad

ITA 28/AHD/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 0349 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-08-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 03-11-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 02-01-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI, JM AND D.C. AGRAWAL, AM) ITA NO.28/AHD/2008 A. Y.: 2004-05 THE D. C. I. T., CIRCLE -4, NAVJIVAN TRUST BUILDING, OFF. ASHRAM ROAD, AHMEDABAD VS KHYATI CHEMICALS PVT. LTD., 905/906 SAMUDRA ANNEXE, SARDAR PATEL NAGAR, OFF. C. G. ROAD, NIAVRANGPURA, AHMEDABAD PA NO. AAACK 6277 E (APPELLANT) (RESPONDENT) APPELLANT BY SHRI BHUVNESH KULSHRESTHA, DR RESPONDENT BY NONE O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A)-VIII, AHMED ABAD DATED 08-10-2007 FOR THE ABOVE ASSESSMENT YEAR 2004-05 CH ALLENGING THE ORDER OF THE LEARNED CIT(A) IN DIRECTING TO EXCLUDE SALE S TAX AND EXCISE DUTY ELEMENT FROM THE TURNOVER WHILE CALCULATING DEDUCTI ON U/S 80HHC OF THE IT ACT. THE LEARNED CIT(A) FOUND THAT THE ISSUE IS COVERED BY THE JUDGMENT OF THE HONBLE SUPREME COURT IN THE CASE O F LAXMI MACHINE WORKS 290 ITR 667 IN WHICH IT WAS HELD THAT EXCISE DUTY AND SALES TAX ELEMENT WOULD NOT FALL PART OF THE TURNOVER IN CALC ULATING DEDUCTION U/S 80 HHC OF THE IT ACT. THE LEARNED DR CONCEDED THAT THE ISSUE IS COVERED AGAINST THE REVENUE BY THE JUDGMENT OF THE HONBLE SUPREME COURT IN THE CASE OF LAXMI MACHINE WORKS (SUPRA). IN THIS VI EW OF THE MATTER, WE DO NOT FIND ANY MERIT IN THE DEPARTMENTAL APPEAL. T HE SAME IS ACCORDINGLY DISMISSED. ITA NOS. 28/AHD/2008 DCIT, CIR-4, AHMEDABAD VS KHYATI CHEMICALS PVT. LTD . 2 2. IN THE RESULT, THE DEPARTMENTAL APPEAL IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 16-08-2010 SD/- SD/- (D. C. AGRAWAL) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 16-08-2010 LAKSHMIKANT/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD