M/s. SHERIAR R. IRANI, MUMBAI V. ACIT CIR. - 20(3), MUMBAI

ITA 4546/MUM/2006

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 8002 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2001-2002
• Appeal Filed On: 09-08-2006
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SHRAVAN KUMAR
• Assessee Lawyers: SUNIL MISTRY
• Section: 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: MUMBAI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI R.S. PADVEKAR, JUDICIAL MEMBER ITA NO.4546/MUM/2006 (ASSESSMENT YEAR: 2001-02) M/S. SHERIAR R. IRANI, 1505/06, BELSCOT TOWER, LOKHANDWALA COMPLEX, ANDHERI (WEST), MUMBAI -400 053 ASSESSEE VS ASSTT. COMMISSIONER OF INCOME-TAX, CIRCLE 20(3), MUMBAI- 400 020 REVENUE PAN: AAAPI 0867 R ASSESSEE BY: SHRI SUNIL MISTRY REVENUE BY: SHRI SHRAVAN KUMAR O R D E R PER R.S. PADVEKAR, JM IN THIS APPEAL THE ASSESSEE HAS CHALLENGED THE IMPU GNED ORDER OF THE LD. CIT (A)-32 MUMBAI FOR THE A.Y. 2001-02. GR OUND NO.1 READS AS UNDER:- DEDUCTION UNDER SECTION 80HHC OF THE INCOME TAX ACT , 1961 1. THE ASSESSING OFFICER HAD ERRED IN REJECTING TH E ASSESSEES CONTENTION THAT THE DEDUCTION UNDER SECTION 80HHC H AS TO BE ALLOWED ON THE NET PROFIT FROM M/S. STALLION EXPORT S OF ` 28,81,796/- WITHOUT REDUCING THE LOSS SUFFERED IN H IS OTHER ITA 4546/M/2006 M/S. SHERIAR R. IRANI 2 PROPRIETARY BUSINESS UNDER THE NAMES AND STYLE OF M /S. SHERIAR, MUMBAI AND M/S. RUSTOM SHERIAR & CO. 2. THE ISSUE IS IN RESPECT OF COMPUTATION OF DEDUCT ION U/S.80HHC. THE ASSESSEE IS A SOLE PROPRIETOR OF THE FOLLOWING BUSINESS CONCERNS CARRIED UNDER THE NAME AND STYLE OF: A. M/S. STALLION EXPORTS AND TRADING CO., B. M/S. SHERIAR, MUMBAI, C. RUSTOM SHERIAR & CO. THE ASSESSEE CLAIMED THAT THE ASSESSEE MAINTAIN SEP ARATE BOOKS OF ACCOUNT FOR EACH OF THE ABOVE BUSINESSES. THE ASSE SSEE FURTHER CLAIMED THAT ALL THE BUSINESSES ARE CARRIED ON AT DIFFERENT PREMISES AND THEY ARE INDEPENDENT OF EACH OTHER IN TERMS OF MANAGEMENT, F INANCE AND NATURE OF BUSINESS. THE ASSESSEE CLAIMED THE DEDUCTION U/ S.80HHC IN RESPECT OF THE EXPORT PROFIT RELATING TO M/S. STALLION EXPO RTS AND TRADING CO. AMOUNTING TO ` 21,73,310/-. THE ASSESSEE CONTENDED THAT A DEDUCT ION U/S.80HHC HAS TO BE ALLOWED ON NET PROFIT FROM M/S. STALLION EXPORTS AND TRADING CO. OF ` 27,87,196/-, WITHOUT ADJUSTING THE LOSSES FROM HIS OTHER PROPRIETARY BUSINESS NAMELY, M/S. SHERIAR, MU MBAI AND M/S. RUSTOM SHERIAR & CO. AMOUNTING TO ` 18,88,900/- AND 63,843/- RESPECTIVELY. THE A.O. WAS OF THE OPINION THAT AS PER THE FORMULA GIVEN IN SUB-SECTION (3) TO SECTION 80HHC LOSSES OF OTHER BU SINESSES CANNOT BE EXCLUDED. AFTER MAKING THE ELABORATE DISCUSSION BY REFERRING TO THE DIFFERENT DECISIONS, HE HELD THAT THE ASSESSEE IS E NTITLED TO DEDUCTION U/S.80HHC OF THE ACT ON AGGREGATE PROFIT AFTER ADJU STMENT OF PROFIT/LOSSES IN OTHER BUSINESSES CARRIED OUT BY TH E ASSESSEE. THE LD. COUNSEL FAIRLY CONCEDED THAT IN THE ASSESSEES OWN CASE FOR THE A.Y. 1998-99 THIS ISSUE HAS BEEN DECIDED AGAINST THE ASS ESSEE RELYING ON THE DECISION OF THE SYNCO INDUSTRIES LTD. 254 ITR 608 W HICH IS A DECISION OF JURISDICTIONAL HIGH COURT. THE LD. COUNSEL ALSO FI LED THE COPY OF THE ITA 4546/M/2006 M/S. SHERIAR R. IRANI 3 TRIBUNAL ORDER IN ITA 1817/MUM/2002 DATED 25.7.2005 . WE, THEREFORE, FOLLOWING THE ORDER OF THE TRIBUNAL IN THE ASSESSEE S OWN CASE FOR THE A.Y. 1998-99 CONFIRM THE ORDER OF THE LD. CIT (A) ON THI S ISSUE. ACCORDINGLY, GROUND NO.1 IS DISMISSED. THE LD. COUNSEL SUBMITTE D THAT GROUND NO.2 AND GROUND NO.3 ARE NOT PRESSED. AS GROUND NO.2 AN D GROUND NO.3 ARE NOT PRESSED THE SAME ARE DISMISSED AS NOT PRESSED. 3. IN THE RESULT, ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY O F 23RD MARCH 2011. SD/- SD/- ( J. SUDHAKAR REDDY ) ACCOUNTANT MEMBER ( R.S. PADVEKAR ) JUDICIAL MEMBER MUMBAI, DATE: 23RD MARCH 2011 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) 32, MUMBAI. 4) THE CIT -20, MUMBAI. 5) THE D.R. A BENCH, MUMBAI. BY ORDER / / TRUE COPY / / ASSTT. REGISTRAR *CHAVAN I.T.A.T., MUMBAI ITA 4546/M/2006 M/S. SHERIAR R. IRANI 4 SR.N. EPISODE OF AN ORDER DATE INITIALS CONCERNED 1 DRAFT DICTATED ON 16.03.2011 SR.PS 2 DRAFT PLACED BEFORE AUTHOR 17.03.2011 SR.PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 FILE SENT TO THE BENCH CLERK SR.PS/PS 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER