ACIT 10(2), MUMBAI V. MAMAL CAPACITORS P. LTD, MUMBAI

ITA 3544/MUM/2010

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 7275 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 28-07-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 05-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K NAYAK
• Assessee Lawyers: PRAWIN N SHAH
• Keywords: Business income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI BEFORE SHRI R.S.SYAL, AM AN D SHRI N.V.VASUDEVAN, JM ITA NO.3544/MUM/2010 : ASST.YEAR 2007-2008 THE ASSTT.COMMISSIONER OF INCOME-TAX CIRCLE 10(2) MUMBAI. VS. M/S.MAMAL CAPACITORS PRIVATE LIMITED 401 MADHAV APARTMENT, HAWAHAR ROAD OPP : RAILWAY STATION, GHATKOPAR (EAST) MUMBAI 400 077. PAN : AAACM5638B. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI A.K.NAYAK RESPONDENT BY : SHRI PRAWIN N.SHAH DATE OF HEARING : 28.07.2011 DATE OF PRONOUNCEMENT : 05.08.2011 O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 26.02.2010 IN RELATION TO THE ASSESSMENT YEAR 2007-2008. 2. THE ONLY GROUND RAISED IN THIS APPEAL IS AGAINST THE ALLOWI NG OF DEDUCTION BY THE LEARNED CIT(A) U/S.80-IB IN RESPECT OF INTEREST INCOME. BRIE FLY STATED THE FACTS OF THE CASE ARE THAT THE ASSE SSEE CLAIMED DEDUCTION U/S.80-IB INTER ALIA ON INTEREST INCOME BY CLAIMING IT TO BE A `BUSINESS INCOME. TH E ASSESSING OFFICER REFUSED THE CLAIM AND INCLUDED SUCH INTEREST UNDER THE HEAD `INCOME FR OM OTHER SOURCES. THE LEARNED CIT(A), CONSIDERING THE TRIBUNA L ORDER PASSED IN ASSESSEES OWN CASE IN EARLIER YEARS I.E. ASS ESSMENT YEARS 2001-2002, 2003-2 004 AND 2004-2005, HELD THE ASSESSEE TO BE ELIGIBLE FOR DEDUCTI ON U/S.80-IB IN RESPECT OF BANK INTEREST. 3. BEFORE US THE LEARNED DEPARTMENTAL REPRESENTATIVE CONTENDED THAT THE VIEW TAKEN BY THE TRIBUNAL IN EARLIER YEARS BE NOT FOLLOWED BECAUSE OF THE JUDGEMENT OF ITA NO.3544/MUM/2010 M/S.MAMAL CAPACITORS PVT.LTD. 2 THE HONBLE SUPREME C OURT IN THE CASE OF LIBERTY INDIA VS. CIT [(2009) 317 ITR 218 (SC)]. IN THE OPPOSITION THE LEARNED A.R. SUPPORTED THE IMPUGNED ORDER. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS NOTICED THAT IN THE IMME DIATELY PRECEDING ASSESSMENT YEAR 2006-2007 THE TRIBUNAL VIDE ITS ORDER DATED 22.06.2011 IN ITA NO.1786/MUM/2010 ALLOWED THE ASSESSEES CLAIM OF DEDUCTION ON TH E SAID INCOME AFTER CONSIDERING THE JUDGEMENT OF THE HON BLE SUPREME COURT IN LIBERTY INDIA (SUPRA) . THE RELEVANT DISCUSSION IS MADE IN PARAS 8 AND 9 OF THE SAID ORDER. IN VIEW OF THE FACT THAT THE TRIBUNAL HAS CONSISTENTLY DECIDED THIS IS SUE IN ASSESSEES FAVOUR FOR THE GRANTING OF DEDUCTION U/S.80-IB ON BANK INTE REST UNDER SIMILAR CIRCUMSTANCES IN EARLIER YEARS EVEN AFTER CONSIDERING THE JUDGEMENT OF TH E HONBLE SUPREME COURT IN THE CASE OF LIBERTY INDIA (SUPRA) , WE HOLD THAT THE VIEW TAKEN BY THE LEARNED CIT(A) FOLLOWING THE EARLIER YEARS ORDERS PASSED BY THE TRIBUNAL, IS INESCAPABLE. WE, THEREFORE, APPROVE THE SAME. 5. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN TH E OPEN COURT ON THIS 05 TH DAY OF AUGUST, 2011. SD/- SD/- (N.V.VASUDEVAN) (R.S.SYAL) JUDICIAL MEMBER ACC OUNTANT MEMBER MUMBAI : 05 TH AUGUST, 2011. DEVDAS*` COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED ITA NO.3544/MUM/2010 M/S.MAMAL CAPACITORS PVT.LTD. 3 4. THE CIT(A) - XXII, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.