ITO 8(3)(3), MUMBAI V. TAINWALA CHEMICALS & PLASTICS (I) LTD, MUMBAI

ITA 4264/MUM/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 62172 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-04-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 02-04-2012
• Assessment Year: 1995-1996
• Appeal Filed On: 25-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M PARTHASARATHI NAIK
• Section: 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH E, MUMBAI BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER & SHRI VIVEK VARMA, JUDICIAL MEMBER. I.T.A. NO. 4264/MUM/2011. ASSESS MENT YEAR : 1995-96. THE INCOME-TAX OFFICER, M/S TAINWALA CHEMICALS & 8(3)(3), MUMBAI. VS. PLASTICS P. LTD., TAINWALA HOUSE, ROAD, NO .18, MIDC, MAROL, ANDHERI (E AST), MUMBAI 400 093. PAN AAACT0212C APPELLANT. RESPONDENT. APPELLANT BY : SHR I M. PARTHASARATHI NAIK. RESPONDENT BY : NONE. DATE OF HEARI NG : 02-04-2012. DATE OF PRONOUNC EMENT : 11-04-2012, O R D E R PER P.M. JAGTAP, A.M. : THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST TH E ORDER OF LEARNED CIT(APPEALS)-18, MUMBAI DATED 15-03-2012 AND THE GR IEVANCE OF THE REVENUE AS PROJECTED THEREIN IS THAT THE LEARNED CIT(APPEALS) HAS ERRED IN DIRECTING THE AO TO ALLOW DEDUCTION U/S 80HHC BY REDUCING 90% OF NET IN TEREST FROM THE PROFITS OF THE BUSINESS. 2. AT THE TIME OF HEARING BEFORE US, NONE HAS APPEA RED ON BEHALF OF THE ASSESSEE. HOWEVER, KEEPING IN VIEW THAT THE SOLITAR Y ISSUE INVOLVED IN THIS APPEAL OF THE REVENUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF ACG ASSOCIATED CAPSULS P. LTD. VS. CIT 2 ITA NO. 4264/MUM/2011 (CIVIL APPEAL NO. 1914 OF 2012 DATED 08-02-2012), T HE SAME IS BEING DISPOSED OF EXPARTE QUA THE RESPONDENT ASSESSEE. AS HELD BY THE HONBLE SUPREME COURT IN THE CASE OF ACG ASSOCIATE CAPSULS P. LTD. (SUPRA), 90% OF NOT THE GROSS INTEREST BUT ONLY THE NET INTEREST WHICH HAS BEEN INCLUDED IN TH E PROFITS OF THE BUSINESS OF THE ASSESSEE AS COMPUTED UNDER THE HEAD PROFITS AND GA INS OF BUSINESS OR PROFESSION IS TO BE DEDUCTED UNDER CLAUSE (I) OF EXPLANATION ( BAA) TO SECTION 80HHC FOR DETERMINING THE PROFITS OF BUSINESS. THE SAID DECIS ION OF THE HONBLE SUPREME COURT THUS IS SQUARELY APPLICABLE TO THE ISSUE UNDE R CONSIDERATION AND RESPECTFULLY FOLLOWING THE SAME, WE UPHOLD THE IMPUGNED ORDER OF THE LEARNED CIT(APPEALS) DIRECTING THE AO TO ALLOW DEDUCTION U/S 80HHC BY RE DUCING 90% OF NET INTEREST FROM THE PROFITS OF THE BUSINESS. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED ON THIS 11 TH DAY OF APRIL, 2012. SD/- SD/- (VIVEK VARMA) ( P.M. JAGTAP) JUDICIAL MEMBER ACCO UNTANT MEMBER MUMBAI, DATED: 11 TH APRIL, 2012. COPY TO : 1. APPELLANT 2. RESPONDENT 3. C.I.T. 4. CIT(A) 5. DR, E-BENCH. (TRUE COPY) BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI. WAKODE