Dy.Commissioner of Income Tax, Circle(4), Ahmedabad V. M/s. Shree Ambica Polymer P.Ltd., Ahmedabad

ITA 3086/AHD/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5870 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-05-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 21-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATISH KARNANI
• Assessee Lawyers: DIVYAKANT PARIKH

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD .., , BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.3086/AHD/2014 ( / ASSESSMENT YEAR : 2011-12) THE DCIT CIRCLE-4(1)(1) AHMEDABAD / VS. M/S.SHREE AMBICA POLYMERS PVT.LTD. A/3, 1 ST FLOOR, SAFAL PROFITAIRE NR.AUDA GARDEN PRAHALADNAGAR AHMEDABAD-380 015 $ ./ ./ PAN/GIR NO. : AABCC 1409 R ( $' / APPELLANT ) .. ( ($' / RESPONDENT ) $') / APPELLANT BY : MR.SATISH KARNANI, SR.DR ($'*) / RESPONDENT BY : MR.DIVYAKANT PARIKH, AR +,*- / DATE OF HEARING 18/05/2017 ./0*- / DATE OF PRONOUNCEMENT 19/ 05/2017 / O R D E R PER PRADIP KUMAR KEDIA, AM: THE CAPTIONED APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-XIV, AHM EDABAD [CIT(A) IN SHORT] DATED 05/08/2014 FOR THE ASSESSMENT YEAR (AY) 2011-12. ITA NO. 3086/AH D/2014 DCIT VS. M/S.SHREE AMBICA POLYMER PVT.LTD. ASST.YEAR 2011-12 - 2 - 2. THE ASSESSEE IN THE INSTANT CASE HAS INTER ALI A CLAIMED DEDUCTION UNDER S.10B OF THE INCOME TAX ACT, 1961 (HEREINAFTE R REFERRED TO AS 'THE ACT') IN RESPECT OF FOREIGN EXCHANGE FLUCTUATION GA IN OF RS.57,27,538/- ARISING FROM EXPORT TRANSACTIONS. THE ASSESSING OF FICER (AO) IN THE COURSE OF SCRUTINY ASSESSMENT OBSERVED THAT THE SAI D FOREIGN EXCHANGE FLUCTUATION GAIN CANNOT BE SAID TO BE IN THE NATURE OF PROFITS AND GAINS DERIVED FROM EXPORT OF ARTICLES OR THINGS OR COM PUTER SOFTWARE. HE ACCORDINGLY DENIED BENEFIT OF DEDUCTION UNDER S.10B IN RESPECT OF FOREX FLUCTUATION GAIN. 3. AGGRIEVED, THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) FOUND THAT THE ASSESSEE IS RIGHT IN LAW AND ON FACTS IN CLAIMING DEDUCTION UNDER S.10B OF THE ACT TOWARDS FOREIGN EX CHANGE FLUCTUATION GAIN FROM ELIGIBLE UNIT. FOR ARRIVING AT THIS CO NCLUSION, THE CIT(A) RELIED UPON THE JUDGEMENT OF THE HONBLE GUJARAT HI GH COURT IN THE CASE OF PRIYANKA GEMS (2014) 267 CTR 480 (GUJ.) AMONG OT HERS. 4. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE THE T RIBUNAL. 5. THE SHORT QUESTION FOR DETERMINATION IS WHETHER AN ASSESSEE IS ELIGIBLE TO CLAIM DEDUCTION UNDER S.10B TOWARDS FOR EIGN EXCHANGE FLUCTUATION GAIN RECEIVED ON EXPORT BILLS OR NOT. WE FIND THAT THE ISSUE IS ITA NO. 3086/AH D/2014 DCIT VS. M/S.SHREE AMBICA POLYMER PVT.LTD. ASST.YEAR 2011-12 - 3 - NO LONGER RES INTEGRA . THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY SERIES OF JUDGEMENTS, SOME OF WHICH ARE NOTED HEREUNDER:- (I) CIT VS. AMBA IMPEX (2006) 282 ITR 144 (GUJ.) (II) PRIYANKA GEMS (2014) 267 CTR 480 (GUJ.) (III) PR.CIT VS. SUN PHARMACEUTICAL INDUSTRIES LTD. (2016) 240 TAXMAN 686 (GUJ.) (IV) ITO VS. BANYAN CHEMICALS (P.) LTD. (2009) 117 ITD 376 (AHD.)[TM]. (V) ACIT VS. M/S.CHAND ENGINEERING IN ITA NO.168 ( ASR)/2010 AY 2006-07, ORDER DATED 10/06/2011. (VI) RENAISSANCE JEWELLERY (P.) LTD. VS. ITO (2006) 101 ITD 380 (MUM.). 6. THE ISSUE BEING FAIRLY SETTLED IN FAVOUR OF THE ASSESSEE BY LONG LINE OF PRECEDENTS, WE ARE UNABLE TO SEE ANY INFIRMITY T O THE ORDER OF CIT(A). 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. THIS ORDER PRONOUNCED IN OPEN COURT ON 19/ 05/2017 SD/- SD/- (..) ( ) ( S.S. GODARA ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 19/ 05 /2017 4..+,.+../ T.C. NAIR, SR. PS ITA NO. 3086/AH D/2014 DCIT VS. M/S.SHREE AMBICA POLYMER PVT.LTD. ASST.YEAR 2011-12 - 4 - !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. $' / THE APPELLANT 2. ($' / THE RESPONDENT. 3. 567- 8- / CONCERNED CIT 4. 8- ( ) / THE CIT(A)-XIV, AHMEDABAD 5. 9:-+67 , 670 , 5 / DR, ITAT, AHMEDABAD 6. <, / GUARD FILE. / BY ORDER, (9-- //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 18.5.17 (DICTATION-PAD 5- PAGES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 18.5.17 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.19.5.17 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 19.5.17 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER