Appeal details
Counselvise Citation
[2009] 114 COUNSELVISE.COM (IT) 8535 (ITAT-DELHI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
9 month(s) 23 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
10-07-2009
Appeal Filed By
Assessee
Order Result
Dismissed
Bench Allotted
G
Next Hearing Date
25-06-2009
Assessment Year
2002-2003
Appeal Filed On
17-09-2008
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH `G : NEW DELHI) BEFORE HONBLE SR. VICE PRESIDENT SHRI R.P. GARG A ND HONBLE JUDICIAL MEMBER, SHRI RAJPAL YADAV ITA NOS.2876 & 2933/DEL./2008 (ASSESSMENT YEARS : 2003-04 & 02-03) SARLA FABRIC PVT. LTD., VS. ACIT, CIRCLE 7(1), 115, JOR BAGH, NEW DELHI. NEW DELHI 110 003. (PAN/GIR NO.AAHCS3856Q) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI M.P. RASTOGI/M.P. MALIK, ADV. REVENUE BY : SHRI B. MURALI KUMAR, CIT(DR) ORDER PER R.P. GARG, SR.VP THESE TWO APPEALS ARE BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS) FOR ASSESSMENT YEARS 2003-04 & 02-03 RESPECTIVELY. FOR THE SAKE OF CONVENIENCE, THEY ARE BEING DISPOSED OF BY THIS COM MON ORDER. IN BOTH THE APPEALS, THE ISSUE IS AGAINST THE DISALLOWANCE OF THE CLAIM U/S 80HHC OF THE I.T. ACT. ITA NO.2876 (A.Y. 2003-04) 2. IT IS AN ADMITTED FACT THAT IN BOTH THE YEARS, T HERE IS NO POSITIVE GROSS TOTAL INCOME AND CONSEQUENTLY, THE ASSESSEE WOULD NOT HAVE ENTIT LED TO ANY DEDUCTION IN VIEW OF THE PROVISIONS OF SECTION 80AB READ WITH SECTION 80B(5) OF THE ACT AND ALSO IN VIEW OF THE JUDGMENT OF THE HONBLE SUPREME COURT IN THE CASE OF M/S IPCA LABORATORIES VS. DCIT, 266 ITR 521. SECTION 80A(5) PROVIDES THAT THE AGGR EGATE AMOUNT OF DEDUCTION UNDER THIS CHAPTER WAS NOT IN ANY CASE EXCEED THE GROSS TOTAL INCOME OF THE ASSESSEE AND IF THERE IS NO POSITIVE GROSS TOTAL INCOME, THE QUESTION OF GRA NTING ANY DEDUCTION UNDER CHAPTER VA WOULD NOT ARISE. IN THESE CIRCUMSTANCES, WE DO NOT FIND ANY MERIT IN THE APPEAL FILED BY THE ASSESSEE FOR BOTH THE YEARS. WE ACCORDINGLY R EJECT THE GROUND. ITA NOS.2876 & 2933/DEL./2008 (A.YS. : 2003-04 & 02-03) 2 ITA NO.2833 (A.Y. 2002-03) 3. THE APPEAL FOR ASSESSMENT YEAR 2002-03, THE ASSE SSEE HAS CHALLENGED THE VALIDITY OF REOPENING OF ASSESSMENT U/S 147 READ WITH SECTIO N 148 OF THE ACT. HOWEVER, IN VIEW O THE ABOVE, THE ASSESSEE IS NOT ENTITLED TO ANY DEDU CTION U/S 80HHC AND REOPENING CANNOT BE SAID TO BE IN VIOLATION OF THE PROVISIONS OF THE ACT. SINCE THE ASSESSEE HAS MADE A CLAIM U/S 80HHC, THE PROVISIONS OF SECTION 147 WERE RIGHTLY INVOKED. WE HOLD ACCORDINGLY AND REJECT THE GROUND OF THE ASSESSEE R AISED IN THIS APPEAL. 4. IN THE RESULT, THE APPEALS ARE DISMISSED. 5. ORDER PRONOUNCED IN OPEN COURT ON 10.07.2009. (RAJPAL YADAV) (R.P. GARG) JUDICIAL MEMBER SR. VICE PRESIDENT DATED: JULY 10, 2009. *SKB* COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A)-X, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. AR/ITAT
