Dabur India Ltd, V. ACIT CC-22,

ITA 3470/DEL/2007

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 9692 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2009
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 16-06-2009
• Assessment Year: 2004-2005
• Appeal Filed On: 01-08-2007
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PRATIMA KAUSHIK
• Assessee Lawyers: PANKAJ JAIN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B NEW DELHI BEFORE SHRI G.E. VEERABHADRAPPA : VICE PRESIDENT; A ND SRHI I.P. BANSAL : JUDICIAL MEMBER ITA NO. 3470/DEL/07 ASSTT. YR: 2004-05 DABUR INDIA LTD. VS. ACIT CEN. CIRCLE-22, 8/3, ASAF ALI ROAD, NEW DELHI. DELHI. PAN/GIR NO. AAACD-0474-C ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : SHRI PANKAJ JAIN ADV. RESPONDENT BY : SMT. PRATIMA KAUSHIK DR O R D E R PER G.E. VEERABHADRAPPA, V.P: THIS APPEAL, BY THE ASSESSEE, ARISES OUT OF THE OR DER DATED 5-6-2007 OF THE CIT(APPEALS)-III, NEW DELHI FOR A.Y. 2004-05. 2. THE MAIN DISPUTE IN THIS APPEAL RELATES TO ALLO CATION OF COMMON OVERHEADS EXPENSES BETWEEN THE UNITS ELIGIBLE FOR D EDUCTION U/S 80-IB/80-IC AND NON-ELIGIBLE UNITS. THE SPECIFIC GROUNDS TAKEN READ AS UNDER: ITA 3470-2007 2 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS )-III ERRED IN HOLDING THAT EXPENSES HAVING NO NEXUS WITH BADDI/JA MMU UNITS ARE ALLOCABLE FROM COMMON OVERHEADS IN RESPECT OF T HE FOLLOWING HEADS: A) TRAVELLING & CONVEYANCE RS. 74886618/- B) COMMISSION, DISCOUNT & REBATE RS. 97822663/- C) GENERAL CHARGES RS. 72437949/- D) LEGAL PROFESSIONAL CHARGES AND AUDIT FEE RS. 22 329732/- E) CONTRIBUTION ON SCIENTIFIC RESEARCH RS. 1139175 0/- F) FINANCIAL EXPENSES RS. 32865770/- 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LEARNED CIT(APPEALS)-III ERRED IN HOLDING THAT THE EXPENDIT URE UNDER THE FOLLOWING HEADS IS ALLOCABLE TO 80-IB/80-IC: A) RENT RS. 16038573/- B) RATES & TAXES RS. 1300442/- C) INSURANCE RS. 3419803/- D) LEGAL & PROFESSIONAL (NOTIONAL) RS 10271615/- E) TELEPHONE CABLE AND TELEGRAMS RS. 11112477/- F) GENERAL CHARGES (NOTIONAL) RS. 18590834/- G) DONATIONS RS. 17070555/- H) LEFT OUT EXPENSES (NOTIONAL) RS. 2114000/- 3. AT THE OUT SET IT WAS POINTED OUT BY THE LEARNE D COUNSEL FOR THE ASSESSEE THAT IDENTICAL ISSUES AROSE IN ASSESSEES OWN CASE FOR EARLIER YEARS AND THE TRIBUNAL HAS DECIDED SUCH ISSUES AGAINST TH E ASSESSEE AND THE OTHER GROUNDS IN MEMO OF APPEAL ARE CONSEQUENTIAL TO THES E GROUNDS. 4. THE LEARNED DR, ON THE OTHER HAND, POINTED OUT T HAT THE CIT(A) HAS FOLLOWED ONE SUCH ORDER OF THE TRIBUNAL IN THE ASSE SSEES OWN CASE ON IDENTICAL ISSUES AND THEREFORE THE ORDER OF THE CIT (A) REQUIRES TO BE CONFIRMED. 5. WE HAVE GONE THROUGH THE RECORDS AS WELL AS THE DETAILS FURNISHED BEFORE US AND ARE UNABLE TO FIND ANY INFIRMITY IN THE ORDER OF CIT(A), WHO ITA 3470-2007 3 HAS FOLLOWED THE ORDERS OF THE TRIBUNAL IN ASSESSEE S OWN CASE FOR THE EARLIER YEARS ON SIMILAR ISSUES. THEREFORE, RESPECTFULLY FO LLOWING THE EARLIER ORDER OF THE TRIBUNAL ON IDENTICAL ISSUES, WE UPHOLD THE FIN DINGS OF CIT(A) ON THE ISSUES RAISED IN THIS APPEAL. 6. IN THE RESULT, ASSESSEES APPEAL STANDS DISMISSE D. ORDER PRONOUNCED IN OPEN COURT ON 4-9-2009. SD/- SD/- (I.P. BANSAL ) ( G.E. VEERABHADRA PPA ) JUDICIAL MEMBER VICE PRESIDENT DATED: 4-09-2009. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR