DCIT CC 38, MUMBAI V. ANSHUL SPECIALITY MOLECULES LTD, MUMBAI

ITA 4093/MUM/2009

• Counselvise Citation: [2010] 119 COUNSELVISE.COM (IT) 6397 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-11-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 02-07-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K SRIVASTAVA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES A : MUMBAI BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER ITA. NO.4093/MUM/2009 ASSESSMENT YEAR 2006-2007 DCIT, CC-38, MUMBAI 20 VS. M/S. ANSHUL SPECIALITY MOLECULES LTD. MUMBAI 062. PAN AABCA4003H (APPELLANT) (RESPONDENT) FOR APPELLANT : SHRI R.K.SRIVASTAVA FOR RESPONDENT : SHRI KIRIT KAMDAR ORDER PER D. MANMOHAN, V.P. 1. THIS IS AN APPEAL FILED BY THE REVENUE AND IT P ERTAINS TO THE ASSESSMENT YEAR 2006-2007. THE ISSUE RELATES TO TAXABILITY OF ADVANCE LICENSE BENEFIT RECEIVABLE BY THE ASSESSEE. 2. IT MAY BE NOTICED THAT THE ASSESSEE CLAIMED DED UCTION OF RS.20,91,788/-, BEING THE NET BENEFIT UNDER THE HEA D ADVANCE LICENSE BENEFIT RECEIVABLE AND DEDUCTED SUCH BENEFIT IN IT S BOOKS OF ACCOUNTS BY WAY OF REDUCTION FROM RAW MATERIAL CONSUMED. HOW EVER, IN THE COMPUTATION OF TOTAL INCOME THE DEDUCTION WAS CLAIM ED ON THE BASIS OF THE JUDGMENT OF THE HONBLE ITAT, MUMBAI IN THE CAS E OF JAMSHRI RANJITSINGHJI SPINNING MILLS LTD. VS. IAC 41 ITD 14 2. THE ASSESSING OFFICER WAS HOWEVER OF THE OPINION THAT ADVANCE LIC ENSE BENEFIT RECEIVABLE SHOULD BE TREATED AS INCOME DESPITE THE FACT THAT IN THE IMMEDIATELY PRECEDING YEARS I.E., ASSESSMENT YEARS 1993-94, 1996-97 TO 1999-2000 AND 2001-2002 TO 2004-2005, CIT (A) AC CEPTED THE PLEA OF THE ASSESSEE ; THE ASSESSING OFFICER REJECTED TH E CONTENTION OF THE ASSESSEE ON THE GROUND THAT THE REVENUE HAS NOT ACC EPTED THE ORDERS OF THE FIRST APPELLATE AUTHORITY IN ASSESSEES OWN CASE FOR THE EARLIER YEARS. HOWEVER, ON AN APPEAL FILED BY THE ASSESSEE, THE LEARNED CIT (A) 2 NOTICED THAT THE ISSUE STANDS COVERED BY THE DECISI ON OF THE ITAT, MUMBAI BENCH IN ASSESSEES OWN CASE FOR THE ASSESSM ENT YEARS 1993- 94 AND 1996-97 TO 1999-2000 AND THEREFORE, ACCEPTED THE CONTENTION OF THE ASSESSEE. 3. AGGRIEVED, REVENUE IS IN APPEAL BEFORE US. LEAR NED COUNSEL, APPEARING ON BEHALF OF THE ASSESSEE, PLACE D BEFORE US COPIES OF THE ORDERS OF THE ITAT IN ASSESSEES OWN CASE FO R THE EARLIER YEARS IN SUPPORT OF HIS CONTENTION THAT THE ISSUE STANDS SQU ARELY COVERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. LEA RNED DR COULD NOT PLACE ANY DECISION OF THE COORDINATE BENCH OR OF A HIGHER FORUM WHEREIN A CONTRARY VIEW IS TAKEN ON THIS ISSUE. UND ER THESE CIRCUMSTANCES, WE ARE NOT PERSUADED TO TAKE A DIFFE RENT VIEW ON THE ISSUE. SINCE THE LEARNED CIT (A) HAS FOLLOWED THE D ECISION OF THE ITAT IN ASSESSEES OWN CASE FOR THE EARLIER YEARS, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LEARNED CIT (A) AND T HEREFORE, DISMISS THE APPEAL FILED BY THE REVENUE. PRONOUNCED ACCORDINGLY IN THE OPEN COURT ON 23 RD NOVEMBER, 2010. SD/- (PRAMOD KUMAR) ACCOUNTANT MEMBER SD/- (D. MANMOHAN) VICE PRESIDENT DATED : 23 RD NOVEMBER, 2010 VBP/- COPY TO : 1. DCIT, CC-38, R.NO. 32 (1), GROUND FLOOR, AAYAKAR BHAVAN, MUMBAI-20. 2. M/S. ANSHUL SPECIALITY MOLECULES LTD., RAM HOUSE, 1 ST FLOOR, GAIWADI INDL. ESTATE, S.V. ROAD, GOREGAON (W), MUMBAI 062. PAN AABCA4003H 3. CIT (APPEALS), CENTRAL-VI, MUMBAI 4. CIT, CENTRAL-III, MUMBAI. 5. DR A BENCH 6. GUARD FILE. TRUE COPY BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI 3 DATE INITIALS 1. DRAFT DICTATED ON: 23.10.2010 SR. PS 2. DRAFT PLACED BEFORE AUTHOR: 23.10.2010 SR. PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER : V.P. 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER: A.M . 5. APPROVED DRAFT COMES TO THE SR. PS/PS: SR. PS 6. ORDER PRONOUNCED ON: .10.2010 SR. PS 7. ORDER COME BACK TO SR.PS/PS 8. FILE SENT TO THE BENCH CLERK: SR. PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK: 10. DATE OF DISPATCH OF ORDER: