ANUP N. SHAH, MUMBAI V. DCIT 15(1), MUMBAI

ITA 4524/MUM/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 3212 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2002-2003
• Appeal Filed On: 01-07-2014
• Court: TRIBUNAL
• Department Lawyers: A B KOLI
• Assessee Lawyers: BHUMIKA VORA
• Section: 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) & SHRI SANJAY GARG (JM) I.T.A. NO. 4524 /MUM/ 20 1 4 (ASSESSMENT YEAR 200 2 - 0 3 ) MR. ANUP N. SHAH PROP. ANIKET EXPORTS 6, BHAGIRATI BHAVAN 14, 1 ST PANJRAPOLE LANE C.P. TANK ROAD MUMBAI - 400 004. VS. ACIT 15(1) MUMBAI. ( APPELLANT ) ( RESPONDENT ) PAN NO . AAAPA5836C ASSESSEE BY MS. BHUMIKA VORA DEPARTMENT BY SHRI A.B. KOLI DATE OF HEARING 24 .8 . 201 6 DATE OF PRONOUNCEMENT 24 .8 . 201 6 O R D E R PER B.R. BASKARAN (AM) : - THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 27.8.2013 PASSED BY LEARNED CIT(A) - 26, MUMBAI AND IT RELATES TO A.Y. 2002 - 03. 2. THE ASSESSEE IS AGGRIEVED BY COMPUTATION OF DEDUCTION U/S. 80HHC OF THE ACT MADE BY LEARNED C IT(A). 3. LEARNED COUNSEL APPEARING FOR THE ASSESSEE STATED THAT THE ASSESSEE IS EXPORTER OF STAINLESS STEEL UTENSILS AND CUTLERY ITEMS. IT EXPORTS BOTH GOODS PURCHASED BY IT FROM OUTSIDERS AND ALSO GOODS MANUFACTURED BY IT , I.E., THE ASSESSEE IS EXPORTING BOTH TRADING GOODS MANU FACTURED GOODS. IN THIS REGARD, HE INVITED OUR ATTENTION TO PAGE NO. 35 OF THE PAPER BOOK, WHEREIN A COPY OF PROFIT AND LOSS ACCOUNT IS PLACED. LEARNED AR SUBMITTED THAT LEARNED CIT(A) HAS ERRONEOUSLY TAKEN A VIEW THAT THE ASSESSEE HAS EXPORTED ONLY MANUFA CTURED GOODS DURING THE YEAR UNDER CONSIDERATION. ACCORDINGLY HE HAS COMPUTED THE DEDUCTION U/S. 80HHC OF THE ACT. THE LD A.R SUBMITTED THAT MR. ANUP N. SHAH 2 THE METHOD OF COMPUTATION OF DEDUCTION U/S 80HHC DIFFERS BETWEEN PURE MANUFACTURER EXPORTER AND THE ASSESSEES DOI NG EXPORT OF BOTH TRADING GOODS AND MANUFACTURED GOODS. ACCORDINGLY, LEARNED AR SUBMITTED THAT LEARNED CIT(A) HAS PASSED THE IMPUGNED ORDER ON WRONG APPRECIATION OF THE FACTS AVAILABLE ON RECORD. HE SUBMITTED THAT THE METHOD FOLLOWED BY LD CIT(A) HAS RESU LTED IN DEDUCTION OF LESSER AMOUNT, WHERE AS THE ASSESSEE IS ENTITLED FOR DEDUCTION OF A HIGHER AMOUNT. ACCORDINGLY, LEARNED AR PRAYED THAT THE DEDUCTION ALLOWABLE TO THE ASSESSEE U/S. 80HHC OF THE ACT MAY BE WORKED OUT CORRECTLY. 4. ON THE CONTRARY, LE ARNED DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE MATTER MAY BE RESTORED TO THE FILE OF LEARNED CIT(A) FOR RECONSIDERATION OF THE ISSUE. 5. HAVING HEARD THE CONTENTIONS, WE ARE OF THE VIEW THAT THIS ISSUE REQUIRES FRESH EXAMINATION AT THE END OF THE L EARNED CIT(A) , SINCE THE FIRST APPELLATE AUTHORITY HAS COMMITTED AN ERROR IN APPRECIATING THE FACTS AVAILABLE ON RECORD. FROM THE PROFIT AND LOSS ACCOUNT, WE NOTICE THAT THE ASSESSEE IS EXPORTING BOTH TRADING GOODS AND MANUFACTURED GOODS. HENCE, IN OUR VI EW, THE LD CIT(A) WAS NOT CORRECT IN OBSERVING THAT THE ASSESSEE IS ONLY EXPORTING MANUFACTURED ITEMS. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY LEARNED CIT(A) AND RESTORE THE SAID ISSUE TO HIS FILE FOR FRESH EXAMINATION OF THE SAME BY CONSIDERING THE FACTS IN A PROPER PERSPECTIVE . 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 24. 8 .2016 SD/ - SD/ - (SANJAY GARG ) (B.R.BASKARAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 24 / 8 / 20 1 6 MR. ANUP N. SHAH 3 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// ( DY./ASSTT. REGISTRAR) ITAT, MUMBAI PS