ITO 15(1)(3), MUMBAI V. OILVE SOFTGEL, MUMBAI

ITA 320/MUM/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2782 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 13-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PERMANAND J
• Assessee Lawyers: GYNESHWAR KAT A RAM
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

M/S OLIVE SOFTGEL ITA 320 /M/20 1 4 1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C , MUMBAI . . , , BEFORE SHRI G S PANNU , ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA , JUDICIA L MEMBERITA ITA NO. : 320 /MUM/20 1 4 (ASSESSMENT YEAR: 200 9 - 1 0) ITO - 15 ( 1 )( 3 ), ROOM NO. 108, 1 ST FLOOR, MATRU MANDIR, TARDEO ROAD, MUMBAI 400 0 07 VS M/S OLIVE SOFTGEL, B - 203, GODERJ COLIESUM, SOMAIYA HOSPITAL ROAD, SION (WEST), MUMBAI - 400 022 .: PAN : A AB F O 3449 E (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PERMANAND J RESPONDENT BY : SHRI GYNESHWAR KAT A RAM /DATE OF HEARING : 18 - 0 6 - 2015 / DATE OF PRONOUNCEMENT : 31 - 07 - 2015 ORDER PER AMIT SHUKLA , J.M. : TH E AFORESAID APPEAL HA S BEEN FILED BY THE REVENUE AGAINST IMPUGNED ORDER DATED 01 . 1 0.201 3 , PASSED BY CIT(A) - 22 , MUMBAI FOR QUANTUM OF ASSESSMENT PASSED UNDER SECTION 143(3) O F THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2009 - 10 ON THE FOLLOWING GROUNDS: 1. THE LD. CIT(A) HAS ERRED IN DIRECTING THE ASSESSING OFFICER TO TREAT THE INTEREST INCOME OF RS. 5,88,177/ - AND TRIAL CHARGES OF RS. 3,17,10/ - AS DERIVED FROM BUSINESS ACTIVITY AND ALLOW THE CLAIM OF DEDUCTION UNDER SECTION 80IC OF THE IT ACT, 1961. 2. THE LD. CIT(A) HAS ERRED IN NOT TAKING COGNIZANCE OF HONBLE SUPREME COURT DECISION IN THE CASE OF M/S PANDIAN CHEMICALS LIMITED VS COMMISSIONER OF INCOME - TAX 262 ITR 27 8 (SC) (2003) WHEREIN DERIVATION OF INTEREST OR PROFITS ON DEPOSITS HAS NOT BEEN ALLOWED TO BE INCLUDED FOR THE COMPUTATION OF DEDUCTION U/S 80HHC. M/S OLIVE SOFTGEL ITA 320 /M/20 1 4 2 3. THE LD. CIT(A) HAS ERRED IN NOT TAKING COGNIZANCE OF THE FACT THAT THE DECISION IN THE CASE OF M/S ADVAN CE DETERGENT PVT LTD OF THE HONBLE HIGH COURT OF DELHI HAS NOT BEEN ACCEPTED BY THE DEPARTMENT AND SLP HAS BEEN FILED BEFORE THE HONBLE SUPREME COURT IS PENDING FOR ADJUDICATION. 2. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE, SUBMITTED THAT THE TAX EF FECT IN RESPECT OF DISPUTED ISSUE IS ONLY RS. 2,79,730/ - WHICH IS LESS THAN PRESCRIBED MONETARY LIMIT OF RS. 4 LAKHS LAID DOWN BY THE CBDT VIDE INSTRUCTION NO. 5/2014 DATED 10.07.2014 IN RESPECT OF FILING OF APPEAL BY THE DEPARTMENT. ACCORDINGLY, APPEAL OF THE REVENUE SHOULD BE DISMISSED. THE LD. DR ALSO ADMITTED THE FACT THAT THE TAX PAYABLE ON THE DISPUTED ISSUE IS LESS THAN RS. 4 LAKHS. 3. AFTER CONSIDERING THE AFORESAID CONTENTION OF THE PARTIES, WE FIND THAT THE ADDITION ON ACCOUNT OF DISPUTED ISSUE A GGREGATES TO RS. 9,05,277 / - ON WHICH TAX AND EDUCATION CESS COMES TO RS. 2,74,730/ - WHICH IS LESS THAN RS. 4 LAKHS PRESCRIBED BY THE CBDT VIDE INSTRUCTION NO. 5/2014 DATED 10.07.2014. ACCORDINGLY, THE APPEAL OF THE DEPARTMENT IS DISMISSED IN LIMINE ON ACCO UNT OF TAX EFFECT. 4. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST JU LY , 2015. SD/ - SD/ - ( . . ) ( ) ( G S PANNU ) ( AMIT SHUKLA ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATE: 31 ST JU LY , 2015 / COPY TO: - 1 ) / THE APPELLANT. 2 ) / THE RESPONDENT. M/S OLIVE SOFTGEL ITA 320 /M/20 1 4 3 3) THE CIT (A) - 22 , MUMBAI 4 ) THE CIT 2 1 , MUMBAI . 5 ) , , / THE D.R. C B ENCH, MUMBAI. 6 ) COPY TO GUARD FILE. / BY ORDER / / TRUE COPY / / / , DY. / ASSTT. REGISTRAR I.T.A.T., MUMBAI * . . *CHAVAN, SR.PS