ACIT CEN CIR 8, MUMBAI V. J.B. CHEMICALS & PHARMACEUTICALS LTD, MUMBAI

ITA 4312/MUM/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54992 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Next Hearing Date: 24-08-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 26-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJIV DUTT
• Assessee Lawyers: D R RAIYANI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI I BENCH BEFORE SHRI N.V.VASUDEVAN, JUDICIAL MEMBER & SHRI T.R.SOOD, ACCOUNTANT MEMBER & I.T.A.NO.4312/MUM/2010 A.Y 2007-08 ASST. COMMISSIONER OF I.T. CENTRAL CIRCLE 8, MUMBAI. VS. M/S J.B.CHEMICALS & PHARMACEUTICALS LTD., SEC.80IB(10) WING, 4 TH FLOOR, NEELAM CENTRE, HIND CYCLE ROAD, WORLI, MUMBAI 400 020. PAN: AAACJ1482G (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SANJIV DUTT. RESPONDENT BY : SHRI D. R. RAIYANI. DATE OF HEARING: 23/08/3011 DATE OF PRONOUNCEMENT: 23/08/2011 O R D E R PER T.R.SOOD, AM: IN THIS APPEAL, REVENUE HAS RAISED THE FOLLOWING G ROUND: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN CONSIDERING THE INCOME DERIVED FROM SALE OF SCRAP AS PROFIT ELIGIBLE FOR COMPUTING DEDUCTION U/S.80IB WI THOUT CONSIDERING THE FACT THAT THESE INCOMES HAVE NO DIRECT CONNECTI ON WITH THE INDUSTRIAL UNDERTAKING. 2. AFTER HEARING BOTH THE PARTIES WE FIND THAT IN T HIS APPEAL TAX EFFECT IS LESS THAN RS.2 LAKHS. IN VIEW OF THE CIRC ULAR ISSUED BY THE CBDT BEING F.NO. 279/MISC.142/2007-ITJ DATED 15.05. 2008, THE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. T HE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. PI THWA ENGINEERING WORKS IN 276 ITR 519 AS WELL AS IN CASE OF ZEOB Y. TOPIWALA IN 284 ITR 379 HAS HELD THAT, THE CIRCULARS AS WELL AS INS TRUCTIONS ISSUED BY ITA NO.4312/M/10 2 THE CBDT U/S. 119 OF THE ACT ARE BINDING ON THE TAX AUTHORITIES AND THE MONETARY LIMIT PRESCRIBED UNDER THE CIRCULAR/INSTRU CTIONS IS ALSO APPLICABLE TO THE PENDING APPEAL. 4. RESPECTFULLY FOLLOWING THE PRINCIPLES LAID DOWN BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. PI THWA ENGINEERING WORKS (SUPRA) AS WELL AS IN CASE OF ZEOB Y. TOPIWAL A (SUPRA), WE DISMISS THE APPEAL FILED BY THE REVENUE IN LIMINI W ITHOUT DECIDING THE ISSUE ON MERIT. 5. IN THE RESULT, APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 23/8/2011. SD/- SD/- (N.V.VASUDEVAN) (T.R.SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI: 23/8/ 2011. P/-*