DCIT, Ernakulam V. Smt Rajalakshmi Jayaprasad, Cochin

ITA 481/COCH/2009

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4512 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-07-2011
• Appeal Filed By: Department
• Bench Allotted: DB
• Next Hearing Date: 04-07-2011
• Assessment Year: 2002-2003
• Appeal Filed On: 25-08-2009
• Court: TRIBUNAL
• Department Lawyers: VIJAYAPRABHA
• Assessee Lawyers: T M SREEDHARAN
• Section: 10B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.BARATHVAJA SANKAR, V.P.(BZ) AND SHRI N.VIJAYAKUMARAN, JUDICIAL MEMBER I.T.A.NO.481/COCH/2009 ASSESSMENT YEAR:2002-03 THE DY . COMMISSIONER OF INCOME-TAX, CIRICLE-2(2), ERNAKULAM. VS. SMT. RAJALAKSHMI RAJENDRAPRASAD, PROP. M/S. STERIPPHARM, PLOT NO.16A, B BLOCK,3 RD FLOOR, CSEZ, KAKKANAD,KOCHI.37. PA NO.ACLPJ 3828J (APPELLANT) ( RESPONDENT ) APPELLANT BY MS. VIJAYAPRABHA, JR.D.R RESPONDENT BY SHRI T.M.SREEDH ARAN, ADV. O R D E R PER N.VIJAYAKUMARAN,J.M: THIS IS AN APPEAL BY THE DEPARTMENT AGAINST THE OR DER OF THE LD. CIT(APPEALS)-II, KOCHI, DATED 30-04-2009 RELATING TO THE ASSESSMENT YEAR 2002-03. 2. THIS APPEAL IS TIME BARRED BY 42 DAYS. THE LD. DY. COMMISSIONER OF INCOME-TAX, CIRCLE-2(2), ERNAKULAM, HAS FILED A CONDONATION PETITION BY FORM OF AN AFFIDAVI T STATING THE REASONS FOR THE DELAY. AFTER HEARING BOTH SID ES AND CONSIDERING THE REASONS ADDUCED, FOLLOWING THE JUDG MENT OF ITA NO. 481/COCH/2009 2 THE HONBLE SUPREME COURT IN THE CASE OF COLLECTOR, LAND ACQUISITION VS. MST. KATJI & OTHERS -167 ITR 471 , WE CONDONE THE DELAY AND ADMIT THE APPEAL. 3. IN THE APPEAL, THE ONLY ISSUE FOR OUR CONSIDERAT ION IS ON THE QUANTIFICATION OF ELIGIBLE DEDUCTION U/S.10A(3) R.W.S.10A(4) OF THE I.T.ACT. 4. WE HAVE HEARD THE LD. JR.D.R. AT LENGTH AND THE LD. COUNSEL FOR THE ASSESSEE AND CONSIDERED THE SUBMISS IONS CAREFULLY. ASSESSEES CLAIM THROUGH OUT THE PROCE EDINGS IS THAT THE FOREIGN BUYERS SUPPLIED THE RAW MATERIALS TO THE ASSESSEE, WHICH IS CONVERTED INTO FINISHED PRODUCTS AND EXPORTED TO THE FOREIGN BUYERS. HOWEVER, FOR ACCO UNTING PURPOSE, THE VALUE OF FINISHED GOODS EXPORTED IS SH OWN AS TOTAL TURNOVER. IN THAT WAY THE ASSESSING OFFICER ARRIVED AT THE EXPORT TURNOVER AS WELL AS TOTAL TURNOVER. HOW EVER, THE ASSESSING OFFICER WAS OF THE VIEW THAT THE RAW MATE RIALS CONSUMED WHICH WAS SUPPLIED BY THE FOREIGN BUYER WH ICH MEANS THE ASSESSEE HAS NOT RECEIVED FOREIGN EXCHANG E TO THIS EXTENT. HENCE, WHATEVER THE CONVERTED FOREIG N EXCHANGE RECEIVED BY THE ASSESSEE HAS TO BE CONVERT ED INTO INDIAN RUPEES, EVEN THOUGH THE TOTAL TURNOVER IS HI GHER AND THE ASSESSING OFFICER HAS TAKEN THE TOTAL TURNOVER AS SHOWN ITA NO. 481/COCH/2009 3 BY THE ASSESSEE. HOWEVER, HE REDUCED THE EXPORT TU RNOVER AGAINST WHICH THE LD. CIT(APPEALS) ALLOWED THE APPE AL OF THE ASSESSEE BASED ON THE DECISION OF THE INCOME-TAX AP PELLATE TRIBUNAL, D SPECIAL BENCH, CHENNAI, DATED 6-3-200 9 [121 TTJ(CHENNAI)(SB)865] IN THE CASE OF SAK SOFT LTD. THE DECISION IS RENDERED WITH RELEVANCE TO SECTION 10B AND 10A WHICH IS PARI MATERIA. AFTER CONSIDERING THE RIV AL SUBMISSIONS AND PERUSAL OF THE MATERIALS AVAILABLE ON RECORD, WE HAVE NO HESITATION INC CONFIRMING THE OR DER OF THE LD. CIT(APPEALS). IT IS FURTHER NOTED THAT IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2001-02 IN ITA NO.136/COCH/2008 DATED 16-10-2009, THIS TRIBUNAL QU ASHED THE ORDER OF THE COMMISSIONER OF INCOME-TAX PASSED U/S.263 AND ALLOWED THE APPEAL OF THE ASSESSEE AND THUS THE ASSESSMENT ORDER HAS BEEN REVIVED. RESPECTFULLY FOLLOWING THAT DECISION, DEPARTMENTAL APPEAL DESERVES TO BE D ISMISSED AND ACCORDINGLY DESERVED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE FAILS A ND THE SAME IS ACCORDINGLY DISMISSED. SD/- SD/- (N.BARATHVAJA SANKAR) (N.VIJAYKUMARAN) VICE-PRESIDENT JUDIC IAL MEMBER ERNAKULAM, DATED THE 06 JULY,2011. PM. ITA NO. 481/COCH/2009 4 COPY FORWARDED TO: 1. THE DY. CIT., CIRICLE-2(2), ERNAKULAM. 2. SMT. RAJALAKSHMI RAJENDRAPRASAD, PROP. M/S. STER IPPHARM, PLOT NO.16A, B BLOCK,3 RD FLOOR, CSEZ, KAKKANAD,KOCHI.37. 3. CIT(A)-II, KOCHI. 4. CIT, KOCHI. 5. D.R.