ACIT 12(3), MUMBAI V. KALA DARSHAN, MUMBAI

ITA 4110/MUM/2010

• Counselvise Citation: 411019914 RSA 2010
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2011
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2001-2002
• Appeal Filed On: 20-05-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P C MOURYA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES A : MUMBAI BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI J.SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA. NO. 4110/MUM/2010 ASSESSMENT YEAR 2001-2002 ACIT 12 (3) MUMBAI-400 020 VS. M/S. KALA DARSHAN MUMBAI 400 020 PAN AAAFK7152R (APPELLANT) (RESPONDENT) FOR APPELLANT : SHRI P.C. MOURYA FOR RESPONDENT : SHRI AMIT KHATIWALA ORDER PER D. MANMOHAN, V.P. 1. THIS APPEAL IS FILED AT THE INSTANCE OF THE REV ENUE AND IT PERTAINS TO THE ASSESSMENT YEAR 2001-2002. THE FOLL OWING GROUNDS WERE URGED BY THE REVENUE. 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) ERRED IN RELYING UPO N THE HONBLE TRIBUNAL ORDER AND HOLDING THAT THE ENTIRE AMOUNT RECEIVED ON SALE OF DEPB LICENSE DOES NOT REPRESENT PROFIT CHARGEABLE U/S. 28(IIID) OF THE ACT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) ERRED IN RELYING UPO N THE HONBLE TRIBUNALS ORDER AND HOLDING THAT EXPORT INCENTIVES CAN BE CONSIDERED FOR DEDUCTION U/S.80HHC. 2. AT THE TIME OF HEARING LEARNED COUNSEL, APPEARI NG ON BEHALF OF THE ASSESSEE, SUBMITTED THAT THE LEARNED CIT(A) DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE BY FOLLOWING THE DE CISION OF THE ITAT, MUMBAI BENCH IN THE CASE OF KALPATARU COLOURS & CHE MICALS LTD. (2009) 318 ITR (AT) 87 (MUM.) WHICH IS NOW REVERSED BY THE HONBLE BOMBAY HIGH COURT { REPORTED IN (2010) 328 ITR 451 (BOM.) }. UNDER 2 THESE CIRCUMSTANCES, HE ADMITTED THAT THE ISSUE STA NDS COVERED AGAINST THE ASSESSEE. 3. HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, WE SET ASIDE THE ORDER OF THE LEARNED CIT(A) ON THIS ISSUE AND ALLOW THE APPEAL FILED BY THE REVENUE. 4. IN THE RESULT, APPEAL FILED BY THE REVENUE IS A LLOWED AS PRONOUNCED IN THE OPEN COURT. SD/- SD/- (J.SUDHAKAR REDDY) (D.MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT MUMBAI, DATE 16 TH JUNE, 2011 VBP/- COPY TO 1. ACIT 12 (3), ROOM NO. 121, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI-400 020 2. M/S. KALA DARSHAN, FLAT NO. 23, 5 TH FLOOR, KALA NIKETAN BLDG., QUEENS ROAD, M.K. ROAD, MUMBAI 400 020 PAN AA AFK7152R 3. CIT(A)-23, MUMBAI 4. CIT-12, MUMBAI 5. DR A BENCH 6. GUARD FILE (TRUE COPY) BY ORDER ASST. REGISTRAR, ITAT, MUMBAI BENCHES MUMBAI.