ITO, Ludhiana V. M/s Shri Ram International, Ludhiana

ITA 336/CHANDI/2008

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5010 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 year(s) 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2004-2005
• Appeal Filed On: 17-04-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Keywords: Tax effect
• Section: 80IB

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH . . , , BEFORE SHRI N.K. SAINI, VICE PRESIDENT & SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NOS. 336/CHD/2008 / ASSESSMENT YEAR : 2004-05 THE ITO, WARD VII (2), LUDHIANA VS. ! SHRI RAM INTERNATIONAL, PREET VIHAR, JASSAIN ROAD, LUDHIANA ' # ./ PAN NO:AAMFS4022J '$/ APPELLANT &' '$ / RESPONDENT C.O. NO. 15/CHD/2008 (IN ITA NO. 336/CHD/2008) / ASSESSMENT YEARS : 2004-05 SHRI RAM INTERNATIONAL, PREET VIHAR, JASSAIN ROAD, LUDHIANA VS. ! THE ITO, WARD VII (2), LUDHIANA ' # ./ PAN NO: AAMFS4022J '$/ APPELLANT &' '$ / RESPONDENT () / REVENUE BY : SHRI MANJIT SINGH, CIT DR *+() / ASSESSEE BY : NONE , -(+ .# / DATE OF HEARING : 20.08.2019 /0 (+ .# / DATE OF PRONOUNCEMENT : 20.08.2019 / ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE CAPTIONED APPEAL BY THE REVENUE AND CORRESPONDI NG CROSS OBJECTIONS BY THE ASSESSEE ARE ARISING FROM THE ORD ER DATED 21.02.2018 ITA NO.336-CHD-2008 & C.O. 15-C-2008 M/S SHRI RAM INTERNATIONAL, LUDHIANA. 2 OF THE COMMISSIONER OF INCOME TAX (APPEALS)-II, LUD HIANA [HEREINAFTER REFERRED TO AS CIT(A)] 2. FIRST, WE TAKE UP REVENUES APPEAL IN ITA NO. 33 6/CHD/2008. ITA NO. 336/CHD/2008: 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. IT IS N OTICED THAT THIS APPEAL FILED BY THE DEPARTMENT IS NOT MAINTAINABLE IN VIEW OF THE RECENT CIRCULAR NO. 17/2019 DT. 08/08/2019 ISSUED BY CBDT , WHEREIN, THE MONETARY LIMIT FOR FILING THE APPEALS BY THE DEPART MENT BEFORE THE ITAT HAS BEEN INCREASED TO RS. 50,00,000/- FROM RS. 20,0 0,000/-. 4. HOWEVER, THE LD. CIT DR SUBMITTED THAT THE CIRCU LAR NO. 17/2019 DT. 08/08/2019 IS NOT CLEARLY RETROSPECTIVE IN AS M UCH AS IT SPECIFICALLY STATES IN PARA 4 THAT THE SAID MODIFICATION SHALL COME INTO EFFECT FROM THE DATE OF ISSUE OF THIS CIRCULAR IT WAS STATED T HAT THE AFORESAID SENTENCE CLEARLY GIVES AN IMPRESSION THAT THE SAID CIRCULAR IS APPLICABLE AFTER THE DATE MENTIONED THERE IN AND THEREAFTER TH E DEPARTMENTAL APPEALS WHICH COME IN THE SPECIFIED TAX EFFECT LIMIT WILL N OT BE FILED. THE LD. COUNSELS APPEARING ON BEHALF OF THE ASSESSEES VEHEM ENTLY OPPOSED THE CONTENTION OF THE LD. CIT(DR) AND THEY WERE UNANIMO US IN THEIR ARGUMENTS THAT THE CIRCULAR MUST BE HELD TO HAVE RE TROSPECTIVE APPLICATION AND MUST EQUALLY APPLY TO THE PENDING A PPEALS AS WELL, SINCE THE PRESENT CIRCULAR ONLY MODIFIES THE MONETARY LIM IT EARLIER MENTIONED IN CIRCULAR NO. 3 OF 2018 DT. 11/07/2018. ITA NO.336-CHD-2008 & C.O. 15-C-2008 M/S SHRI RAM INTERNATIONAL, LUDHIANA. 3 5. WE HAVE CONSIDERED THE SUBMISSIONS OF LD. CIT DR AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE IT IS AN ADMITTED FACT THAT THE CBDT VIDE CIRCULAR NO. 17/2019 ENHANCED THE MONETARY LIMIT TO RS. 50,00,000/- FOR NOT FILIN G THE APPEAL BY THE DEPARTMENT BEFORE THE ITAT, EARLIER THIS LIMIT WAS SPECIFIED AT RS. 20,00,000/- IN THE ORIGINAL CIRCULAR NO. 03/2018 DT . 11/07/2018. NOW VIDE THE NEW CIRCULAR NO. 17/2019 DT. 08/08/2019 T HE TAX EFFECT LIMIT HAS BEEN ENHANCED AND THIS NEW CIRCULAR DT. 08/08/2 019 READ AS UNDER; CIRCULAR NO. - 17 OF 2019 DATE - 8TH AUGUST 2019 FURTHER ENHANCEMENT OF MONETARY LIMITS FOR FILING O F APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HI GH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT -AMENDMENT TO CIR CULAR 3 OF 2018 - MEASURES FOR REDUCING LITIGATION. CIRCULAR NO. 3/2018 DATED 11TH JULY 2018 HAS BEEN R EPLACED BY CIRCULAR NO. 17/2019 DATED 8TH AUGUST 2019 TO ENHANCE MONETARY L IMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLA TE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT FOR RE DUCING LITIGATION. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY LIMIT (RS.) [PREVIOUS LIMIT) MONETARY LIMIT (RS.) (REVISED LIMIT) BEFORE APPELLATE TRIBUNAL 20,00,000 50,00,000 BEFORE HIGH COURT 50,00,000 1,00.00.000 BEFORE SUPREME COURT 1,00,00,000 2.00.00,000 THE ASSESSING OFFICER SHALL CALCULATE THE TAX EFFEC T SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES I N THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSEE, THE DISPU TED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT. NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONE TARY LIMIT FURTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE AS SESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, NO APPEAL SHALL BE FILED IN ITA NO.336-CHD-2008 & C.O. 15-C-2008 M/S SHRI RAM INTERNATIONAL, LUDHIANA. 4 RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE. EACH ASSESSEE SHALL BE DEALT WITH SEPARAT ELY. 6. FROM THE CONTENTS OF THE AFORESAID CIRCULAR IT I S CRYSTAL CLEAR THAT THE ANOMALY IN THE EARLIER CIRCULAR NO. 3 OF 2018 D T. 11/07/2018 AT PAGE 5 HAS BEEN REMOVED AND THE LIMIT SPECIFIED IN PARA 3 OF THE EARLIER CIRCULAR HAS BEEN ENHANCED. IT IS ALSO NOT IN DISPU TE THAT THE EARLIER CIRCULAR WAS APPLICABLE RETROSPECTIVELY TO THE PEND ING APPEALS / CROSS OBJECTIONS AND PARA NOS. 12 & 13 OF THE ORIGINAL CI RCULAR NO. 03/2018 DT. 11/07/2018 READ AS UNDER: 12. IT IS CLARIFIED THAT THE MONETARY LIMIT OF RS. 20 L AKHS FOR FILING APPEALS BEFORE THE IT AT WOULD APPLY EQUALLY TO CROSS OBJECTIONS U NDER SECTION 253(4) OF THE ACT. CROSS OBJECTIONS BELOW THIS MONETARY LIMIT, AL READY FILED, SHOULD BE PURSUED FOR DISMISSAL AS WITHDRAWN/ NOT PRESSED. FI LING OF CROSS OBJECTIONS BELOW THE MONETARY LIMIT MAY NOT BE CONSIDERED HENC EFORTH. SIMILARLY, REFERENCES TO HIGH COURTS AND SLPS/ APPEALS BEFORE SUPREME COURT BELOW THE MONETARY LIMIT OF RS. 50 LAKHS AND RS. 1 CRORE RESP ECTIVELY SHOULD BE PURSUED FOR DISMISSAL AS WITHDRAWN/ NOT PRESSED. REFERENCES BEFORE HIGH COURT AND SLPS/ APPEALS BELOW THESE LIMITS MAY NOT BE CONSIDE RED HENCEFORTH. 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROSS OB JECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SCIHCS/TRIBUNAL AND IT SHALL AL SO APPLY RETROSPECTIVELY TO PENDING SLPS/ APPEALS/ CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WIT HDRAWN/ NOT PRESSED. 7. NOW THE CBDT SIMPLY ENHANCED THE MONITORY LIMIT AND THE DIRECTIONS GIVEN EARLIER VIDE PARA NOS. 12 & 13 OF THE CIRCULAR NO. 3 / 2018 DT. 11/07/2018 ARE STILL INTACT WHICH IS CRYST AL CLEAR FROM THE LANGUAGE OF THE CIRCULAR NO. 17/2019, WHEREIN, IT H AS BEEN MENTIONED THAT THERE IS ENHANCEMENT OF MONETARY LIMIT AND AME NDMENT TO CIRCULAR NO. 3 /2018 FOR REDUCING THE LITIGATION. WE, THEREF ORE, ARE OF THE CONFIRMED VIEW THAT THE AMENDED CIRCULAR NO. 17/201 9 NOW ISSUED BY ITA NO.336-CHD-2008 & C.O. 15-C-2008 M/S SHRI RAM INTERNATIONAL, LUDHIANA. 5 THE CBDT IS ALSO APPLICABLE TO THE PENDING APPEALS AS HAS BEEN SPECIFIED IN PARA 13 OF THE ORIGINAL CIRCULAR NO. 3/2018 DT. 11/07/2018 AND THAT THE DEPARTMENT OUGHT NOT TO HAVE FILED THE PRESENT APP EAL BEFORE THE ITAT WHERE THE TAX EFFECT IS RS. 50 LACS OR LESS. FOR TH E AFORESAID VIEW, WE ARE ALSO FORTIFIED BY THE DECISION DT. 14/08/2019 O F THE COORDINATE BENCH I.E ITAT, AHMEDABAD BENCH A AHEMDABAD IN ITA NO. 1398/AHD/2004 FOR THE A.Y. 1998-99 IN THE CASE OF ITO, WARD-3(2) AHMEDABAD VS. DINESH MADHAVLAL PATEL, AHMEDABAD & OTHERS WHEREIN IT HAS BEEN HELD IN PARA 5 TO 7 AS UNDER: 5. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND HAVI NG PERUSED THE MATERIAL ON RECORD, WE DO NOT HAVE SLIGHTEST OF HES ITATION IN HOLDING THAT THE CONCESSION EXTENDED BY THE CBDT NOT ONLY A PPLIES TO THE APPEALS TO BE FILED IN FUTURE BUT IT IS ALSO EQUALL Y APPLICABLE TO THE APPEALS PENDING FOR DISPOSAL AS ON NOW. OUR LINE OF REASONING IS THIS. THE CIRCULAR DATED 8 TH AUGUST 2019 IS NOT A STANDALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCULAR NO 3 OF 2018 (AND SUBSEQUENT AMENDMENT THERETO), AND ALL IT DOES IS T O REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CIRCULAR. THIS I S EVIDENT FROM THE FOLLOWING EXTRACTS FROM THE CIRCULAR DATED 8 TH AUGUST 2019: 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATI ON, IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILIN G OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDM ENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDIN GLY, THE TABLE FOR MONETARY LIMITS SPECIFIED IN PARA 3 OF THE CIRC ULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETAR Y LIMIT (RS.) 1 BEFORE APPELLATE TRIBUNAL 50,00,000 2 BEFORE HIGH COURT 1,00,00,000 3 BEFORE SUPREME COURT 2,00,00,000 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILIN G OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGH ER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEAR VIS-A-VIS WHER E COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED, PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY THE FOLLOWING PARA: '5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTE D ISSUES IN THE CASE OF EVERY ASSESSEE. IF IN THE CASE OF AN ASSESS EE, THE ITA NO.336-CHD-2008 & C.O. 15-C-2008 M/S SHRI RAM INTERNATIONAL, LUDHIANA. 6 DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT Y EAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EX CEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. F URTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR AP PELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT Y EAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR NO A PPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPEC IFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MO RE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEP ARATELY' 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FROM THE DATE OF ISSUE OF THIS CIRCULAR. 6. CLEARLY, ALL OTHER PORTIONS OF THE CIRCULAR NO. 3 OF 2018 (SUPRA) HAVE REMAINED INTACT. THE PORTION WHICH HAS REMAINE D INTACT INCLUDES PARAGRAPH 13 OF THE AFORESAID CIRCULAR WHICH IS AS FOLLOWS: 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROS S OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNA L AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/ APPEALS / CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SP ECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSE D. 7. IN VIEW OF THE ABOVE DISCUSSIONS, WE HEREBY HOLD THAT THE RELAXATION IN MONETARY LIMITS FOR DEPARTMENTAL APPE ALS, VIDE CBDT CIRCULAR DATED 8 TH AUGUST 2019 (SUPRA) SHALL BE APPLICABLE TO THE PENDING APPEALS IN ADDITION TO THE APPEALS TO BE FI LED HENCEFORTH. 8. IN VIEW OF THE AFORESAID DISCUSSION, THE PRESENT APPEAL FILED BY THE DEPARTMENT IS DISMISSED DUE TO LOW TAX EFFEC T. IT IS, HOWEVER, CLARIFIED THAT THE DISMISSAL OF THE ABOVE APPEAL SHALL NOT BE TAKEN TO BE AFFIRMATION OF THE ORDER OF THE CIT(A) ON MERITS. THE LEGAL ISSUE RAISED BY THE REVENUE IS BEING LEFT OPEN TO B E ADJUDICATED IN AN APPROPRIATE CASE. C.O. NO. 15/CHD/2008 BY ASSESSEE : 9. THE ASSESSEE HAS TAKEN FOLLOWING CROSS OBJECTION S:- ITA NO.336-CHD-2008 & C.O. 15-C-2008 M/S SHRI RAM INTERNATIONAL, LUDHIANA. 7 1. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN RESTRICTING THE ADDITION TO 5% OF THE TOTAL EXPENSES OF RS. 1,19,34,080/- AGAINST THE ADDITION OF 10% AS MADE BY THE ASSESSING OFFICER A S PER PAGE 30 OF THE ORDER OF THE CIT (APPEAL) . 2. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN NOT ALLOWING DEDUCT ION U/S 80 IB ON DEPB AND DUTY DRAW BACK BEI NG EXPORT INCENTIVES AS PER PAGE 30 OF THE ORDER OF CIT (APPEAL). 3. THAT THE RESPONDENT CRAVES LEAVE TO ADD OR AMEND ANY GROUND OF CROSS-OBJECTIONS BEFORE THE APPEAL IS FINALLY HEARD OR DISPOSED OFF. 10. GROUND NO.1 : VIDE GROUND NO.1, THE ASSESSEE HAS AGITATED THE ACTION OF THE CIT(A) IN CONFIRMING THE DISALLOWANCE OF EXPENDITURE TO THE EXTENT OF 5% OF THE TOTAL EXPENSES CLAIMED UNDE R DIFFERENT HEADS. THE ASSESSING OFFICER DISALLOWED 10% OF THE TOTAL E XPENSES CLAIMED BY THE ASSESSEE UNDER DIFFERENT HEADS OBSERVING THAT THE MAJORITY OF THE PAYMENTS WERE MADE IN CASH AND THAT SOME OF THE EXP ENSES CLAIMED UNDER THE DIFFERENT HEADS WERE NOT VERIFIABLE AT AL L. THE ASSESSING OFFICER ALSO OBSERVED THAT THE PERCEN TAGE OF MANUFACTURING EXPENSES HAD INCREASED FROM 8.45% IN THE PRECEDING YEAR TO 16.57% AS GIVEN IN THE TABLE IN THE ASSESSMENT O RDER. THE LD. CIT(A) HOWEVER, RESTRICTED THE DISALLOWANCE TO 5% OF THE EXPENSES CONSIDERING THE OVERALL FACTS AND CIRCUMSTANCES OF THE CASE AND OBSERVING THAT THOUGH THE ASSESSEE MIGHT HAVE SOME GROUND IN RESP ECT OF PAYMENTS ITA NO.336-CHD-2008 & C.O. 15-C-2008 M/S SHRI RAM INTERNATIONAL, LUDHIANA. 8 MADE IN CASH, HOWEVER, THE ONUS WAS ON THE ASSESSEE TO EXPLAIN WITH NECESSARY EVIDENCE THAT THE EXPENSES WERE NOT EXCES SIVE AND THE SAME WERE GENUINE EXPENSES. NOTHING HAS BEEN BROUGHT BEFORE US AS TO SHOW ANY I NFIRMITY IN THE ORDER OF THE CIT(A). IN VIEW OF THIS, WE DO NOT FIND ANY INFIRMITY IN TH E ORDER OF THE CIT(A) ON THIS ISSUE AND THE SAME IS UPHELD. 11. GROUND NO.2: VIDE THIS GROUND OF THE CROSS OBJECTIONS, THE ASSESSEE HAS AGITATED THE ACTION OF THE CIT(A) IN CONFIRMING THE DISALLOWANCE MADE BY THE ASSESSING OFFICER OF DEDUC TION CLAIMED U/S 80IB OF THE ACT ON DEPB AND DUTY DRAW BACK. THIS I SSUE IS SQUARELY COVERED BY THE DECISION OF THE HON'BLE SUPREME COUR T IN THE CASE OF LIBERTY INDIA VS CIT [2009] 317 ITR 218 (SC). WE , THEREFORE, DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A). THER E IS NO MERIT IN THE CROSS OBJECTIONS FILED BY THE ASSESSEE. IN THE RESULT, THE APPEAL OF THE REVENUE AND CROSS OBJECTIONS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20.08.2019 SD/- SD/- ( . . / N.K. SAINI) ( / SANJAY GARG) !'# / VICE PRESIDENT $% / JUDICIAL MEMBER DATED : 20.08.2019 .. ITA NO.336-CHD-2008 & C.O. 15-C-2008 M/S SHRI RAM INTERNATIONAL, LUDHIANA. 9 2(&+3454+ / COPY OF THE ORDER FORWARDED TO : 1. '$ / THE APPELLANT 2. &' '$ / THE RESPONDENT 3. , 6+ / CIT 4. , 6+ ( )/ THE CIT(A) 5. 47 &+8 , . 8 , 9:;< / DR, ITAT, CHANDIGARH 6. ;= - / GUARD FILE 2 , / BY ORDER, > / ASSISTANT REGISTRAR ITA NO.336-CHD-2008 & C.O. 15-C-2008 M/S SHRI RAM INTERNATIONAL, LUDHIANA. 10 [2009] 317 ITR 218 (SC) [IN THE SUPREME COURT OF INDIA] LIBERTY INDIA V. COMMISSIONER OF INCOME-TAX 4. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) H AS ERRED IN RESTRICTING THE ADDITION TO 5% OF THE TOTAL EXPENSE S OF RS. 1, 19, 34, 080/- AGAINST THE ADDITION OF 10% AS MADE B Y THE ASSESSING OFFICER AS PER PAGE 30 OF THE ORDER OF TH E CIT (APPEAL) . 5 . THAT THE LD. COMMISSIONER OF INCOME TAX (APPEAL S) HAS ERRED IN CONFIRMING THE ACTION OF THE ASSES SING OFFICER IN NOT ALLOWING DEDUCTION U/S 80 IB ON DEPB AND DUTY DRAW BACK BEING EXPORT INCENTIV ES AS PAR PAGE JO' 6~F THE ORDER OF CIT* (APPEAL). 6. THAT THE RESPONDENT CRAVES LEAVE TO ADD OR AMEND AN Y GROUND OF CROSS-OBJECTIONS BEFORE THE APPEAL IS FINALLY HEARD OR DISPOSED OFF.