ADDL CIT 2(3), MUMBAI V. TATA AUTOCOMP SYSTEMS P. LTD, MUMBAI

ITA 3602/MUM/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 62510 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 31-05-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 05-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B JAYA KUMAR
• Section: 115JB; 10B; 12; 10; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIB UNAL MUMBAI BENCHES E, MUMBAI BEFORE SHRI R.S.SYAL, AM AND SHRI AMIT SHUKLA, JM ITA NO.3602/MUM/2011 : ASST. YEAR 2005-2006 THE ASSTT.COMMISSIONER OF INCOME-TAX CIRCLE 2(3) MUMBAI. M/S.TATA AUTOCOMP SYSTEMS PVT.LTD. BOMBAY HOUSE 24 HOMI MODY STREET, FORT MUMBAI 400 001. PAN : AAACT1848E. (APPELLANT) VS. (RESPONDENT) APPELLANT BY : SHRI B.JAYA KUMAR RESPONDENT BY : S/SHRI DHANESH BAFNA & ALIASGER RAM PURAWALA DATE OF HEARING : 31.05.2012 DATE OF PRONOUNCEMENT : 06.06.2012 O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE LEARNED CIT(A) ON 01.02.2011 IN RELATION TO THE ASSESSMENT YEAR 2005-2006. 2. THE ONLY ISSUE RAISED BY THE REVENUE IN THIS APP EAL IS AGAINST THE DIRECTION OF THE LEARNED CIT(A) TO ALLOW DEDUCTION U/S 10B FROM THE INCOME COMPUTED U/S 115JB. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE ASSESSEE REDUCED A SUM OF ` 1,91,59,172, BEING THE AMOUNT OF INCOME DEDUCTIBLE U/S 10B FROM THE COMPUTATION OF BOOK PROFIT U/S 115JB. THE ASSESSING OFFICER REFUSED TO ACCEPT THE SAME ON THE GROUND THAT THE ASSESSEE HAD NOT LODGED ANY CLAIM U/S 10B IN ITS NORMAL COMPUTATION. THE LEARNED CIT(A) C ONCURRED WITH THE SUBMISSION ADVANCED ON BEHALF OF THE ASSESSEE AND A CCEPTED THE CLAIM. 3. HAVING HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE RELEVANT MATERIAL ON RECORD IT IS RELEVANT TO NOTE THAT EXPLANATION 1 TO SECTION 115JB PROVIDES MECHANISM FOR COMPUTING BOOK PROFIT. IT STATES TH AT THE BOOK PROFIT MEANS THE NET PROFIT AS SHOWN IN THE PROFIT AND LOSS ACCO UNT FOR THE RELEVANT PREVIOUS YEAR PREPARED UNDER SUB-SECTION (2) AS INCREASED BY THE ITEMS SPECIFIED, IF ITA NO.3602/MUM/2011 M/S.TATA AUTOCOMP SYSTEMS PRIVATE LIMITED. 2 DEBITED TO THE PROFIT AND LOSS ACCOUNT; AND AS RED UCED INTER ALIA BY (II) THE AMOUNT OF INCOME TO WHICH ANY OF THE PROVISIONS OF SECTION 10 (OTHER THAN THE PROVISIONS CONTAINED IN CLAUSE (23G) THEREOF)] OR SECTION 10A OR SECTION 10B OR SECTION 11 OR SECTION 12 APPLY, IF ANY SUCH AMOUNT IS CREDITED TO THE PROFIT AND LOSS ACCOUNT. A BARE PERUSAL OF THE PROVISION INDI CATES THAT IF THE AMOUNT OTHERWISE ELIGIBLE FOR DEDUCTION/EXEMPTION UNDER TH E PROVISIONS SPECIFIED IS CREDITED TO THE PROFIT AND LOSS ACCOUNT THEN SUCH A MOUNT SHALL BE REDUCED FROM THE AMOUNT OF PROFIT AS SHOWN IN THE PROFIT AND LOS S ACCOUNT FOR THE PURPOSES OF COMPUTING BOOK PROFIT. IT IS NOT THE CASE OF THE REVENUE THAT SUCH AMOUNT DEDUCTIBLE U/S 10B WAS NOT CREDITED TO THE PROFIT A ND LOSS ACCOUNT. IN VIEW OF THE FOREGOING DISCUSSION, WE FIND THAT THE LEARNED CIT(A) HAS TAKEN AN UNIMPEACHABLE VIEW ON THIS ISSUE. WE, THEREFORE, UP HOLD THE SAME. 4. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED ON THIS 06 TH DAY OF JUNE, 2012. SD/- SD/- (AMIT SHUKLA) (R.S.SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI : 06 TH JUNE, 2012. DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A)-VI, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. ITA NO.3602/MUM/2011 M/S.TATA AUTOCOMP SYSTEMS PRIVATE LIMITED. 3 TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.