DCIT CIR 3(1), MUMBAI V. BHARAT SHIPYARD LTD, MUMBAI

ITA 343/MUM/2009

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3806 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2010
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 16-11-2010
• Assessment Year: 2003-2004
• Appeal Filed On: 15-01-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P N DEVADASAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI B BENCH BEFORE SHRI T.R.SOOD, ACCOUNTANT MEMBER & SHRI VIJAY PAL RAO, JUDICIAL MEMBER I.T.A.NO.343/MUM/2009 - A.Y 2003-04 DY. COMMISSIONER OF I.T., CIRCLE 3(1), MUMBAI. VS. M/S BHARATI SHIPYARD LTD., 302, WAKEFIELD HOUSE, 3 RD FLOOR, SPROTT ROAD, BALLARD ESTATE, MUMBAI 400 038 PAN: AAACB 1688 E (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P.N.DEVADASAN. RESPONDENT BY : SHRI VIJAY MEHTA. O R D E R PER T.R.SOOD, AM: IN THIS APPEAL, THE REVENUE HAS RAISED THE FOLLOWI NG GROUND: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT[A] ERRED IN HOLDING THAT ONLY NET INTEREST CAN BE CONS IDERED WHILE COMPUTING DEDUCTION U/S.80HHC AND NOT THE GROSS INTEREST. 2. THE LD. DR SUBMITTED THAT THIS ISSUE IS COVERED IN FAVOUR OF THE REVENUE BY THE DECISION OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. ASIAN STAR CO. LTD. 326 ITR 56. 3. ON THE OTHER HAND, LD. COUNSEL OF THE ASSESSEE F AIRLY CONCEDED THAT NOW THE ISSUE STANDS COVERED AGAINST THE ASSES SEE BY THE DECISION CITED BY THE LD. DR. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS CAREFULL Y, WE FIND THAT THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF ASIAN STAR CO. LTD. [SUPRA] HAS HELD THAT WHILE COMPUTING DEDUCTION U/S .80HHC, 90% OF 2 THE GROSS INTEREST HAS TO BE TAKEN INTO ACCOUNT AND REDUCE FROM THE PROFITS FOR COMPUTING THE DEDUCTION U/S.80HHC. 5. RESPECTFULLY FOLLOWING THE ABOVE DECISION, WE DE CIDE THIS ISSUE IN FAVOUR OF THE REVENUE. 6. IN THE RESULT, APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 19 TH DAY OF NOVEMBER, 2010. SD/- SD/- (VIJAY PAL RAO) (T.R.SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI: 19 TH NOVEMBER, 2010. P/-*