VINOD COOKWARE, MUMBAI V. ASST CIT 18(2), MUMBAI

ITA 3324/MUM/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3541 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2008-2009
• Appeal Filed On: 11-05-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: O P MEENA
• Keywords: Business income
• Section: 80IB

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES F MUMBAI . . , / BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER /AND . , SHRI D.KARUNAKARA RAO, ACCOUNTANT MEMBER . / ITA NO.3324/MUM/2012 ! ! ! ! ' ' ' ' / ASSESSMENT YEAR 2008-09 VINOD COOKWARE, 56, EVERGREEN IND.ESTATE, SHAKTI MILLS LANE, E-MOSES ROAD, MAHALAXMI, MUMBAI . ! ! ! ! / VS. THE ACIT 18(2), ROOM NO.115, PIRAMAL CHAMBERS, LAL BAUG, PAREL, MUMBAI - 12. # ./ $% ./ PAN/GIR NO. : AACFV 2197H ( #& / APPELLANT ) .. ( '(#& / RESPONDENT ) #& ) / APPELLANT BY: NONE '(#& * ) / RESPONDENT BY : SHRI O.P.MEENA ! * + / DATE OF HEARING : 04/06/2013 ,-' * + / DATE OF PRONOUNCEMENT : 04/06/2013 . / O R D E R PER I.P.BANSAL, J.M: THIS IS AN APPEAL FILED BY THE ASSESSEE. IT IS DIRECTED AGAINST THE ORDER DATED 06/02/2012 PASSED BY LD. CIT(A)-29, MUMBAI FOR ASSESSMENT YEAR 2008-09. THE GROUND OF APPEAL READS AS UNDER: 1.ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW THE CIT (APPEALS) ERRED IN CONFIRMING THE ORDER OF ASSESSIN G OFFICER IN NOT . / ITA NO.3324/MUM/2012 ! ! ! ! ' ' ' ' / ASSESSMENT YEAR 2008-09 2 TREATING RS.89,02,483 OF DEPB/DUTY DRAWBACK THOUGH THE SAME ARE INTERNAL PART OF BUSINESS INCOME. 2. THIS APPEAL WAS FIXED FOR HEARING ON 03/06/2013. A LETTER REQUESTING FOR ADJOURNMENT WAS FILED. AS THE ISSUE RAISED BY THE ASSESSEE IS COVERED BY THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF LI BERTY INDIA VS. CIT 317 ITR 218 (SC), ADJOURNMENT WAS GRANTED FOR 04/06/2013 A ND DATE WAS DULY NOTED BY LD. A.R. HOWEVER, ON 04/06/2013 NONE WAS PRESEN T ON BEHALF OF THE ASSESSEE. WE PROCEED TO DECIDE THE APPEAL FILED BY THE ASSESSEE EX-PARTE ON MERITS. 3. DEPB AND DUTY DRAWBACK AMOUNTING TO RS.89,02,483 /- WAS NOT CONSIDERED AS ELIGIBLE INCOME FOR DEDUCTION UNDER S ECTION 80 IB BY THE A.O. LD. CIT(A) HAS UPHELD SUCH ACTION OF A.O FOLLOWING THE AFOREMENTIONED DECISION OF HONBLE SUPREME COURT IN THE CASE OF LI BERTY INDIA VS. CIT(SUPRA). THE ASSESSEE IS AGGRIEVED, HENCE, HAS FILED AFOREM ENTIONED GROUND OF APPEAL. 4. LD. D.R RELIED UPON THE ORDER PASSED BY LD. CIT( A) AND AFOREMENTIONED DECISION OF HONBLE SUPREME COURT IN THE CASE OF L IBERTY INDIA VS. CIT (SUPRA). 5. WE HAVE HEARD LD. D.R AND CAREFULLY GONE THROUGH THE ORDERS PASSED BY A.O AS WELL AS LD. CIT(A). IN THE AFOREMENTIONED D ECISION, HONBLE SUPREME COURT HAS HELD THAT DEPB/DUTY DRAWBACK ARE INCENTIV ES WHICH FLOW FROM THE SCHEMES FRAMED BY CENTRAL GOVERNMENT OR FROM SECTIO N 75 OF THE CUSTOMS ACT, 1962, HENCE, INCENTIVE PROFITS ARE NOT PROFITS DERI VED FROM THE ELIGIBLE BUSINESS AND, THEREFORE, DUTY DRAWBACK/DEPB BENEFITS DO NOT FORM PART OF NET PROFITS OF THE INDUSTRIAL UNDERTAKING FOR THE PURPOSES OF SECT ION 80IA OR 80IB OF THE ACT. RESPECTFULLY FOLLOWING THIS DECISION OF HONBLE SUP REME COURT WE FIND NO INFIRMITY IN THE ORDER PASSED BY LD. CIT(A) VIDE WH ICH IT HAS BEEN HELD THAT DUTY DRAWBACK AND DEPB ARE NOT ELIGIBLE FOR DEDUCTI ON UNDER SECTION 80 IB, . / ITA NO.3324/MUM/2012 ! ! ! ! ' ' ' ' / ASSESSMENT YEAR 2008-09 3 WE DECLINE TO INTERFERE IN SUCH FINDINGS RECORDED BY LD. CIT(A) AND UPHOLD HIS ORDER ON THIS ISSUE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 0 4/06/2013 . * ,-' / 0!1 04/06/2013 - * 2 3 SD/- S D/- ( . / D.KARUNAKARA RAO ) ( . . / I.P. BANSAL ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; 0! DATED 04/06/2013 . . . . * ** * '+45 '+45 '+45 '+45 65'+ 65'+ 65'+ 65'+ / COPY OF THE ORDER FORWARDED TO : 1. #& / THE APPELLANT 2. '(#& / THE RESPONDENT. 3. 7 ( ) / THE CIT(A)- 4. 7 / CIT 5. 582 '+! , , / DR, ITAT, MUMBAI 6. 2 9 / GUARD FILE. .! .! .! .! / BY ORDER, (5+ '+ //TRUE COPY// : :: : / ; ; ; ; $ $ $ $ (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI . ! . ./ VM , SR. PS