DCIT 4(1), MUMBAI V. BHILOSA INDUSTRIES P.LTD ( FORMERLY KNON AS BHILOSA TEX-N- TIST P.LTD), MUMBAI

ITA 5024/MUM/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 1735 (ITAT-MUMBAI)
• Duration Of Justice: 9 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 1996-1997
• Appeal Filed On: 02-09-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S RANA
• Assessee Lawyers: M B SANGHVI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, B, MUMBAI BEFORE SHRI R V EASWAR, PRESIDENT AND SHRI J SUDHAKAR REDDY, ACCOUNTANT MEMBER I T A NO: 5024/MUM/2009 ASSESSMENT YEAR: 1996-97 I T A NO: 5025/MUM/2009 ASSESSMENT YEAR: 1997-98 I T A NO: 5026/MUM/2009 ASSESSMENT YEAR: 2006-07 DEPUTY COMMISSIONER OF INCOME TAX 4(1), MUMBAI AP PELLANT VS BHILOSA INDUSTRIES PVT. LTD. , MUMBAI RESPONDEN T (FORMERLY KNOWN AS BHILOSA TEX-N-TWIST PVT. LTD.) (PAN: AAACB1538A) APPELLANT BY: SHRI S S RANA RESPONDENT BY: SHRI M B SANGHVI O R D E R R V EASWAR, PRESIDENT: THESE ARE THREE APPEALS BY THE DEPARTMENT RELATING TO THE ASSESSMENT YEARS 1996-97, 1997-98 AND 2006-07. THE ONLY GROUND IN ALL THE THREE APPEALS IS WHETHER THE CIT(A) WAS RIG HT IN HOLDING THAT TWISTING AND TEXTURISING OF YARN AMOUNTED TO MANUFA CTURE FOR THE PURPOSE OF GRANTING DEDUCTION UNDER SECTION 80-IB O F THE INCOME TAX ACT, 1961. THERE IS NO DISPUTE THAT THE ASSESSEE W AS ENGAGED IN THE AFORESAID ACTIVITY. THE CIT(A) HAS FOLLOWED THE JU DGMENT OF THE HONBLE BOMBAY HIGH COURT RENDERED ON 27.02.2008 IN THE CASE OF M/S EMTEE POLY YARN; AS ALSO THEIR JUDGMENT DATED 17.04 .2008 IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2001-02 , IN WHICH IT WAS HELD THAT TEXTURISING AND TWISTING OF POY YARN AMOU NTS TO MANUFACTURE. THE CIT(A) HAS ALSO NOTED THAT THE DEPARTMENT HAS F ILED SPECIAL LEAVE ITA NOS : 5024, 5025 & 5026/MUM/2009 2 PETITION BEFORE THE HONBLE SUPREME COURT AGAINST T HE JUDGMENTS OF THE BOMBAY HIGH COURT AND THUS WANTS TO KEEP THE IS SUE ALIVE. FOLLOWING THE JUDGMENTS OF THE HONBLE BOMBAY HIGH COURT IN THE ASSESSEES OWN CASE AS WELL AS THE ORDERS OF THE TR IBUNAL FOR CERTAIN OTHER YEARS, HE ALLOWED THE DEDUCTION UNDER SECTION 80-IB. 2. THE REVENUE IS IN APPEAL. SINCE THE CIT(A) HAS FOLLOWED THE JUDGMENTS OF THE HONBLE BOMBAY HIGH COURT INCLUDIN G THE JUDGMENT IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 200 1-02, WE UPHOLD HIS ORDER FOR ALL THE THREE YEARS. AT THE TIME OF THE HEARING IT WAS REPRESENTED ON BEHALF OF THE ASSESSEE THAT THE ORDE R OF THE BOMBAY HIGH COURT IN THE CASE OF EMTEE POLY YARN HAS BEEN AFFIRMED BY THE SUPREME COURT IN THE JUDGMENT REPORTED IN 320 ITR 6 65. THE MATTER NOW STANDS CONCLUDED ALSO BY THE JUDGMENT OF THE SU PREME COURT. WE ACCORDINGLY CONFIRM THE ORDERS OF THE CIT(A) AND DISMISS THE APPEALS FILED BY THE REVENUE. NO COSTS. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH JUNE 2010. SD/- SD/- (J SUDHAKAR REDDY) (R V EASWAR) ACCOUNTANT MEMBER PRESIDENT MUMBAI, DATED 11 TH JUNE 2010 SALDANHA COPY TO: 1. BHILOSA INDUSTRIES PVT. LTD. 74/75, FREE PRESS HOUSE, NARIMAN POINT, MUMBAI 400 021 2. DCIT 4(1) 3.CIT-4 4.CIT(A)-IV 5.DR B BENCH TRUE COPY BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI