UNIPHOS ENTERPRISES LTD, MUMBAI V. DCIT CEN CIR 38, MUMBAI

ITA 3928/MUM/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7641 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2006-2007
• Appeal Filed On: 12-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D S SUNDAR SINGH
• Keywords: Revised return

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH: MUMBAI BEFORE SHRI R.S. PADVEKAR, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO.3928/MUM/2011 (ASSESSMENT YEAR: 2007-08) UNIPHOS ENTERPRISES LTD., READY MONEY TERRACE, DR. AMBEDKAR ROAD, WORLI NAKA, MUMBAI -400 018 ...... APPELLANT VS DY. COMMISSIONER OF INCOME-TAX, CENTRAL -38, MUMBAI ..... RESPONDENT PAN: AAACU 3440 P APPELLANT BY: MS. SAISUDHA MULTANI RESPONDENT BY: MR. D.S. SUNDAR SINGH DATE OF HEARING: 13.03.2012 DATE OF PRONOUNCEMENT: 28.03.2012 O R D E R PER R.S. PADVEKAR, JM : IN THIS APPEAL THE ASSESSEE HAS CHALLENGED THE IMPU GNED ORDER OF THE LD. CIT (A)-41, MUMBAI DATED 07.03.2011 FOR THE A.Y. 2007-09. THE ASSESSEE HAS TAKEN FOLLOWING GROUNDS IN THE APP EAL: 1.1 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE COMMISSIONER OF INCOME-TAX (A) ERRED IN UP HOLDING THE ACTION OF THE ASSESSING OFFICER IN DISALLOWING THE DEDUCTION AMOUNTING TO ` .7,27,989/- CLAIMED U/S.35DD OF THE ACT BEING THE 5TH YEAR OF CLAIM MADE DURING THE ASSESSMENT PROCEEDINGS. 1.2 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AND IN LAW, THE COMMISSIONER OF INCOME-TAX (A) ERRED IN NO T CONSIDERING THE APPLICATION FOR CLAIM OF DEDUCTION U/S.35DD OF THE ACT MADE DURING ASSESSMENT PROCEEDINGS ON ME RIT. ITA 3928/M/2011 UNIPHOS ENTERPRISES LTD. 2 2. THE ISSUE IN CONTROVERSY IS IN A NARROW COMPASS. THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF TRADING IN CH EMICALS. THE ASSESSMENT WAS COMPLETED U/S.143(3) OF THE ACT. DU RING THE COURSE OF THE ASSESSMENT PROCEEDINGS THE ASSESSEE CLAIMED THE DEDUCTION U/S.35DD OF THE ACT OF RS.7,27,889/- IN RESPECT OF DEMERGER EXPENSES. THE ASSESSMENT YEAR 2007-08 IS THE FIFTH YEAR OF THE CLAIM. THE A.O. REJECTED THE CLAIM OF THE ASSESSEE BY GIVI NG REASON THAT THE SAID CLAIM WAS NOT MADE IN THE RETURN OF INCOME. T HE ASSESSEE CARRIED THE ISSUE BEFORE THE LD. CIT (A) BUT WITHOU T SUCCESS. THE LD. CIT (A) RELIED ON THE DECISION OF THE HONBLE SUPRE ME COURT IN THE CASE OF GOETZE (INDIA) LTD. VS. CIT 284 ITR 323. IN HIS OPINION WITHOUT REVISE RETURN THE ASSESSEES CLAIM CANNOT BE ENTERT AINED. NOW, THE ASSESSEE IS IN APPEAL BEFORE US. 3. WE HAVE HEARD THE PARTIES AND PERUSED THE RECORD S. AS PER THE FACTS ON RECORD, THE ASSESSEE HAS BEEN CONSISTENTLY ALLOWED THE DEDUCTION U/S.35DD OF THE ACT IN THE ASSESSMENT ORD ER PASSED U/S.143(3) FOR THE A.YS. 2003-04, 2004-05, 2005-06 & 2006-07. THE ASSESSMENT YEAR 2007-08 IS FIFTH YEAR AND LAST YEAR OF CLAIM OF DEDUCTION U/S.35DD OF THE ACT. THE ELIGIBILITY OF THE CLAIM IS NOT DISPUTED ANYWHERE BUT ONLY RESERVATION OF THE AUTHO RITIES BELOW IS THE ASSESSEE SHOULD HAVE FILED REVISED RETURN IF THERE WAS INADVERTENT MISTAKE. IN THE CASE OF GOETZE (INDIA) LTD. (SUPRA) THEIR LORDSHIPS HAVE HELD THAT POWERS OF THE TRIBUNAL TO ADMIT THE CLAIM IS NOT DISTURB. WE, ACCORDINGLY, ALLOW GROUNDS TAKEN BY THE ASSESSE E AND DIRECT THE A.O. TO ALLOW THE CLAIM U/S.35DD FOR THE A.Y. 2007- 08. 4. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 2 8TH MARCH, 2012. SD/- ( B. RAMAKOTAIAH ) ACCOUTANT MEMBER SD/- ( R.S. PADVEKAR ) JUDICIAL MEMBER MUMBAI, DATE: 28TH MARCH, 2012 ITA 3928/M/2011 UNIPHOS ENTERPRISES LTD. 3 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A)-41, MUMBAI. 4) THE CIT CENTRAL III, MUMBAI. 5) THE D.R. F BENCH, MUMBAI. BY ORDER / / TRUE COPY / / ASSTT. REGISTRAR I.T.A.T., MUMBAI *CHAVAN