THE DC.CC.44, MUMBAI V. M/S. FLAT PRODUCTS EQUIPMENTS (I) LTD, MUMBAI

ITA 4489/MUM/2007

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5966 (ITAT-MUMBAI)
• Duration Of Justice: 12 year(s) 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2004-2005
• Appeal Filed On: 12-06-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NISHANT SAMAIYA
• Assessee Lawyers: SHERRY GOYAL
• Keywords: Opportunity of being heard; Question of law; Set aside
• Section: 143(3); 80HHC; 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH I MUMBAI BEFORE SHRI MAHAVIR SINGH (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NO. 4489/MUM/2007 ASSESSMENT YEAR: 2004 - 05 DEPUTY COMMISSIONER OF INCOME TAX, LTU CIRCLE 1, WORLD TRADE CENTRE 1, CUFFEE PARADE, MUMBAI VS. FLAT PRODUCTS EQUIPMENTS LTD. (NOW KNOWN AS CMI FPE LIMITED), MEHTA HOUSE - 64, ROAD NO. 13, M.I.D.C., ANDHERI (E), MUMBAI 400093 PAN NO. AAACF0252G APPELLANT RESPONDENT REVENUE BY : SHRI NISHANT SAMAIYA, SR. D R ASSESSEE BY : MS. SHERRY GOYAL, AR DATE OF HEARING : 11 /06 /2019 DATE OF PRONOUNCEMENT: 31/07/2019 ORDER PER N.K. PRADHAN, AM THIS IS AN APPEAL FILED BY THE R EVENUE . THE RELEVANT ASSESSMENT YEAR IS 2004 - 05 . THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISS IONER OF INCOME TAX (APPEALS) - II , MUMBAI [IN SHORT CIT(A)] AND ARISES OUT OF THE ASSESSMEN T COMPLETED U/S 143(3) OF THE INCOME - T AX ACT 1961, (THE ACT). 2. THE GROUNDS OF APPEAL FILED BY THE REVENUE READ AS UNDER: ' 1. ON THE FACTS AND IN THE CIRCUMSTANCES AND IN LAW, THE LD. CIT (APPEALS) HAS ERRED IN DIRECTING TO ALLOW DEDUCTION U/S 80HHC WITHOUT FLAT PRODUCTS EQUIPMENTS LTD. ITA NO. 4489/MUM/2007 2 DEDUCTING QUANTUM OF DEDUCTION U/S 80IB IN CONTRAVENTION OF SECTION 80IA(9) OF THE ACT. 2. THE APPELLANT PRAYS THAT THE ORDE R OF THE CIT (A) ON THE ABOVE GROUND BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3. THE SAME ISSUE AROSE BEFORE THE HONBLE BOMBAY HIGH COURT IN ASSESSEES OWN CASE IN ITA NO. 151 OF 2010, WHEREIN THE FOLLOWING SUBSTANTIAL QUESTION OF LAW WAS DECIDED : WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE TRIBUNAL WAS RIGHT TO HOLDING THAT THE DEDUCTION OF PROFIT AND GAINS ALLOWED U/S 80 - IA/80 - IB HAD TO BE DEDUCTED FROM THE PROFITS AND GAINS OF THE APPELLANTS BUSINES S ON WHICH DEDUCTION U/S 80HHC OF THE ACT HAD TO BE COMPUTED? THE HONBLE HIGH COURT, RELYING ON ITS DECISION IN THE CASE OF ASSOCIATED CAPSULES PVT. LTD. V. DCIT (ITA NO. 3036 OF 2010 DECIDED ON 10.01.2011 ) DIRECTED THE TRIBUNAL TO RECOMPUTE THE DEDUCTI ON IN THE LIGHT OF ABOVE DECISION. 4. IN COMPLIANCE WITH THE DIRECTION OF THE HONBLE BOMBAY HIGH COURT, THE CASE WAS TAKEN UP FOR HEARING. AT THE TIME OF HEARING BEFORE US, THE LD. REPRESENTATIVES OF BOTH THE SIDES AGREED THAT THE MATTER RELATING TO RECO MPUTATION OF THE DEDUCTION PERMISSIBLE TO THE ASSESSEE CAN MORE APPROPRIATELY BE LEFT TO BE DONE BY THE AO. THEY URGE THAT THIS MATTER MAY, THEREFORE, BE RESTORED TO THE FILE OF THE AO FOR RECOMPUTING THE DEDUCTION ALLOWABLE TO THE ASSESSEE. ACCORDINGLY, T HIS MATTER IS RESTORED TO THE FILE OF THE AO WITH A DIRECTION TO RECOMPUTE THE DEDUCTION PERMISSIBLE TO THE ASSESSEE IN THE LIGHT OF THE JUDGMENT OF THE HONBLE BOMBAY HIGH COURT DATED 11.01.2011 (SUPRA) AFTER GIVING REASONABLE OPPORTUNITY OF BEING HEARD T O THE ASSESSEE. FLAT PRODUCTS EQUIPMENTS LTD. ITA NO. 4489/MUM/2007 3 IT IS SEEN THAT SIMILAR ORDER HAS BEEN PASSED BY ITAT F BENCH, MUMBAI IN ASSESSEES OWN CASE FOR AY 2003 - 04. 5. IN THE RESULT, THE APPEAL IS DISPOSED OFF AS PER THE DIRECTION OF THE HONBLE BOMBAY HIGH COURT AS INDICATED ABOVE. ORDER P RONOUNCED IN THE OPEN COURT ON 31/07/2019. SD/ - SD/ - ( MAHAVIR SINGH ) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED: 31/07/2019 RAHUL SHARMA , SR. P.S. COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE . BY ORDER, //TRUE COPY// (SR. PRIVATE SECRETARY) ITAT, MUMBAI