The ACIT, Circle-2, RAJKOT-GUJARAT V. M/s. Decora Cotton Exports P. Ltd., RAJKOT-GUJARAT

ITA 318/RJT/2014

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1097 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 28-05-2015
• Assessment Year: 2001-2002
• Appeal Filed On: 08-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR
• Section: 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI N.S. SAINI, ACCOUNTANT MEMBER ./ ITA NO.318/RJT/2014 / ASSTT. YEAR: 2001-02 ACIT, CIR.2 RAJKOT. VS M/S.DECORA COTTON EXPORTS P. LTD. GIRISH KUNJ, 7, RANCHHOD NAGAR SOCIETY RAJKOT. / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI AVINASH KUMAR, AR ASSESSEE BY : SHRI VIMAL DESAI, CA / DATE OF HEARING : 28/05/2015 / DATE OF PRONOUNCEMENT: 29/05/2015 / O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER: THIS APPEAL OF THE REVENUE IS AGAINST THE ORDER OF THE CIT(A)-III, RAJKOT DATED 28.02.2014 FOR THE ASSTT.YEAR 2001-02. 2. THE SOLE GROUND OF APPEAL TAKEN BY THE REVENUE I S THAT THE CIT(A)ERRED IN DELEING THE DISALLOWANCE MADE ON ACC OUNT OF CLAIM OF DEDUCTION UNDER SECTION 80HHC OF THE ACT IN RESP ECT OF THE DEPB INCOME. 3. BRIEF FACTS OF THE CASE ARE THAT THE AO ALLOWED D EDUCTION UNDER SECTION 80HHC AT RS.74,31,816/- IN PLACE OF RS.1,30,69,365/- CLAIMED BY THE ASSESSEE ON THE GRO UND THAT THE ASSESSEE FAILED TO PRODUCE SUFFICIENT EVIDENCES, AS MENTIONED IN THE FOURTH PROVISO TO SECTION 80HHC(3) OF THE ACT, AND HENCE, ITA NO.318/RJT/2014 2 DEPB IS NOT ALLOWABLE FOR THE CALCULATION OF EXPORT INCENTIVE FOR THE DEDUCTION UNDER SECTION 80HHC OF THE ACT. 4. ON APPEAL, THE CIT(A) ALLOWED THE CLAIM OF THE A SSESSEE BY RELYING ON THE DECISION OF THE HONBLE GUJARAT HIGH COURT IN THE CASE OF AVANI EXPORTS VS. CIT (2012) 23 TAXMANN.COM 62 (GUJ) WHEREIN IT WAS HELD THAT THE AMENDMENT BROUGHT BY T HE TAXATION LAWS (AMENDMENT) ACT, 2005, GRANTING BENEFIT RESTRI CTING IT TO A CLASS OF ASSESSEE WHOSE TURNOVER IS LESS THAN RS.10 CRORES IS PERMISSIBLE PROSPECTIVELY. SINCE THE ASSESSMENT IN VOLVED IS ASSTT.YEAR 2001-02, THEREFORE, THE CIT(A) ALLOWED T HE CLAIM OF THE ASSESSEE UNDER SECTION 80HHC ON DEPB. 5. THE DR VERY FAIRLY CONCEDED THAT THE ORDER OF TH E CIT(A) WAS IN CONSONANCE WITH THE DECISION OF THE HONBLE GUJA RAT HIGH COURT CITED SUPRA, AND THEREFORE, THE CIT(A) WAS JUSTIFIE D IN ALLOWING THE CLAIM OF DEDUCTION UNDER SECTION 80HHC TO THE ASSES SEE ON DEPB. 6. IN VIEW OF THE ABOVE SUBMISSIONS OF THE DR, WE D ISMISS THE GROUND OF THE APPEAL OF THE REVENUE. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON FRIDAY THE 29 TH MAY, 2015 AT RAJKOT. SD/- SD/- ( SHAILENDRA KUMAR YADAV ) JUDICIAL MEMBER ( N.S. SAINI) ACCOUNTANT MEMBER AHMEDABAD; DATED 29/5/2015