ABC EXIM (INDIA), MUMBAI V. ITO 14(2)(4), MUMBAI

ITA 4016/MUM/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 79382 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2000-2001
• Appeal Filed On: 02-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKASH AGARWAL
• Assessee Lawyers: M M MEHTA
• Section: 80HHC

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A B ENCH, MUMBAI . , !' , #$ %&'( , #) *+ # ' BEFORE SHRI D.MANMOHAN, VICE PRESIDENT AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ./ I.T.A. NOS. 4016 & 4017/MUM/2014 ( , , , , / ASSESSMENT YEARS :2000-01 & 2003-04 M/S. ABC EXIM (INDIA), GALA NO. 8, 1 ST FLOOR, KUNTAL MODI ESTATE, OPP. CHIRAG NAGAR POLICE, L.B.S. MARG, GHATKOPAR (W), MUMBAI-400 086 / VS. THE ITO 14(2)-4, EARNEST HOUSE, NARIMAN POINT, MUMBAI-400 021 +- #) ./ ./ ./ PAN/GIR NO. : AAEFA 1544R ( -0 / APPELLANT ) .. ( 12-0 / RESPONDENT ) -0 3 # / APPELLANT BY: SHRI M.M. MEHTA 12-0 4 3 # / RESPONDENT BY: SHRI VIKASH AGARWAL 4 5) / DATE OF HEARING :09.07.2014 6, 4 5) / DATE OF PRONOUNCEMENT :09.07.2014 *#7 / O R D E R PER N.K. BILLAIYA, AM: THESE TWO APPEALS BY THE ASSESSEE ARE PREFERRED A GAINST THE TWO SEPARATE ORDERS OF THE LD. CIT(A)-25, MUMBAI FOR A SSESSMENT YEARS 2000-01 AND 2003-04. IN BOTH THESE APPEALS, THE AS SESSEE HAS RAISED COMMON GROUNDS, THEREFORE, THEY WERE HEARD TOGETHER AND DISPOSE OF THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE AND BREVIT Y. ITA NOS. 4016 & 4017/M/2014 2 2. THE SOLE GRIEVANCE OF THE ASSESSEE IS THAT THE L D. CIT(A) ERRED IN IGNORING FIFTH PROVISO TO SEC. 80HHC(3) OF THE ACT THEREBY DECLINING THE CLAIM OF THE ASSESSEE OF RS. 11,21,614/- FOR A.Y. 2 000-01 AND RS. 99,672/- FOR A.Y. 2003-04. 3. THE ASSESSEE IS IN THE BUSINESS OF MANUFACTURING AND TRADING IN TEXTILES. FOR THE YEAR UNDER CONSIDERATION, THE AS SESSEE CLAIMED DEDUCTION U/S. 80HHC AMOUNTING TO RS. 11,21,614/- FOR A.Y. 20 00-01 AND RS. 66672/- FOR A.Y. 2003-04. THE CLAIM OF THE ASSESSE E WAS DENIED BY THE AO WHO WAS OF THE OPINION THAT IF EXPORT INCENTIVES ARE REDUCED FROM THE NET PROFIT, THERE WILL BE NEGATIVE PROFIT FOR THE P URPOSE OF DEDUCTION U/S. 80HHC OF THE ACT AND IF THE ASSESSEE HAS NEGATIVE P ROFIT FROM EXPORT ACTIVITY, DEDUCTION U/S. 80HHC CANNOT BE ALLOWED TO THE ASSESSEE. 4. IN THE FIRST ROUND OF APPEAL, THE ASSESSEE CARRI ED THE MATTER BEFORE THE LD. CIT(A). THE LD. CIT(A) DISMISSED THE APPEA L EX PARTE. WHEN THE MATTER WAS HEARD BY THE TRIBUNAL, THE TRIBUNAL IN ITA NO. 2390 AND 2391/MUM/2012 RESTORED THE MATTER TO THE FILE OF TH E LD. CIT(A) FOR DECIDING AFRESH CLAIM OF DEDUCTION U/S. 80HHC OF TH E ACT. 5. PURSUANT TO THE DIRECTIONS OF THE TRIBUNAL, THE LD. CIT(A) ONCE AGAIN DECLINED THE CLAIM OF DEDUCTION OF THE ASSESS EE. AGGRIEVED, THE ASSESSEE IS BEFORE US. 6. IT IS THE CLAIM OF THE ASSESSEE THAT DURING THE IMPUGNED ASSESSMENT YEARS, THE ASSESSEE HAS EARNED EXPORT INCENTIVES O F RS. 16,71,360 AND RS. 7,72,274/-. THE EXPORT INCENTIVES INCLUDED RS. 11, 21,614/- AND RS. 99,672/- RESPECTIVELY BEING PROFIT ON SALE OF LICEN SES UNDER DEPB SCHEME. THE ASSESSEE HAD CLAIMED DEDUCTION U/S. 80 HHC IN THE LIGHT OF ITA NOS. 4016 & 4017/M/2014 3 FIFTH PROVISO TO SEC. 80HHC(3) OF THE ACT AS IT WAS COVERED BY THE AMENDMENT MADE IN SEC. 80HHC AS PER TAXATION LAWS A MENDMENT ACT 2005. NO DEFECT WAS POINTED OUT BY THE LD. DEPARTM ENTAL REPRESENTATIVE IN SO FAR AS THE COMPUTATION OF CLAIM BY THE ASSESS EE IS CONCERNED. 7. CONSIDERING FACTS IN TOTALITY, IN THE LIGHT OF T HE PROVISIONS OF SEC. 80HHC(3) R.W. FIFTH PROVISO, THE CLAIM OF THE ASSES SEE IS ACCEPTED. THE AO IS DIRECTED TO ALLOW THE CLAIM OF DEDUCTION OF R S. 11,21,614/- IN A.Y. 2000-01 AND RS. 99,672/- IN A.Y. 2003-04. 8. IN THE RESULT, THE APPEALS OF THE ASSESSEE FOR B OTH THE YEARS ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON 9 TH JULY, 2014 . *#7 4 , ) # 8 9*: 09.07.2014 4 ; SD/- SD/- (D.MANMOHAN ) (N.K. BILLAIYA) !' /VICE PRESIDENT #) *+ / ACCOUNTANT MEMBER MUMBAI; 9* DATED : 09.07.2014 . . ./ RJ , SR. PS ITA NOS. 4016 & 4017/M/2014 4 *#7 *#7 *#7 *#7 4 44 4 15% 15% 15% 15% <#%,5 <#%,5 <#%,5 <#%,5 / COPY OF THE ORDER FORWARDED TO : 1. -0 / THE APPELLANT 2. 12-0 / THE RESPONDENT. 3. = ( ) / THE CIT(A)- 4. = / CIT 5. %>; 15 , , / DR, ITAT, MUMBAI 6. ; ? / GUARD FILE. *#7 *#7 *#7 *#7 / BY ORDER, 2%5 15 //TRUE COPY// / . . . . (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI