THE ACIT CEN CIR-13, MUMBAI V. M/S. IPCA LABORATORIES LTD, MUMBAI

ITA 5046/MUM/2007

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 8756 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: I
• Next Hearing Date: 04-09-2012
• Assessment Year: 2004-2005
• Appeal Filed On: 20-07-2007
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: N JAYENDRAN
• Section: 80HHC; 80IB; 6

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI I BENCH MUMBAI BENCHES, MUMBAI BEFORE SHRI RAJENDRA SINGH , AM & SHRI VIJAY PAL R AO, JM ITA NO. 5046/MUM/2007 (ASST YEAR 2004-05 ) THE ASST COMMR OF INCOME TAX CEN CIR 13, MUMBAI VS IPCA LABORATORIES LTD 142 A-B KANDIVALI INDL.ESTATE CHARKOP, KANDIVALI (W) MUMBAI 67 (APPELLANT) (RESPONDENT) PAN NO. AAACI1220M ASSESSEE BY SHRI N JAYENDRAN REVENUE BY SH A C TEJPAL DT.OF HEARING 12 TH SEPT 2012 DT OF PRONOUNCEMENT 26 TH , SEPT 2012 PER VIJAY PAL RAO, JM THIS APPEAL BY THE REVENUE IS ARISING FROM THE ORD ER DATED 15.5.2007 OF THE CIT(A) FOR THE AY 2004-05. 2 THE APPEAL WAS DECIDED BY THE TRIBUNAL VIDE ORDER DATED 20.10.2009 INTER- ALIA HOLDING THAT DEDUCTION/S 80IA WAS TO BE ALLOWE D ON THE TOTAL INCOME AFTER EXCLUDING THE AMOUNT OF DEDUCTION AVAILABLE U/S 80I B. THE ASSESSEE CARRIED THE MATTER TO THE HONBLE JURISDICTIONAL HIGH COURT. T HE HONBLE HIGH COURT, VIDE ITS DECISION DATED 11.1.2011 IN I T APPEAL NO. 2185 OF 2010 RESTORED THE ISSUE OF DEDUCTION U/S 80HHC TO THE TRIBUNAL FOR COMPUTATION OF DEDUCTION IN THE LIGHT OF ITS JUDGMENT IN THE CASE OF ASSOCIATED CAPSULES P. LTD. V. DEPUTY COMMISSIONER OF INCOME-TAX REPORTED IN 332 ITR 42 (BOM) IN PARAS 2 TO 4 AS UNDER: 2. IN SO FAR AS FIRST THREE QUESTIONS ARE CONCERNED, LD COUNSEL ON BOTH THE SIDES SATE THAT THE SAME HAVE ALREADY BEEN ANSWERED BY THIS COURT IN THE CASE OF ASSOCIATED CAPSULES P. LTD. V. DEPUTY COMMI SSIONER OF INCOME- TAX(INCOME TAX APPEAL NO. 3036 OF 2010) DECIDED ON 10 TH JANUARY 2011 IN FAVOUR OF THE ASSESSEE AND AGAINST HE REVENUE. ITA NO. 5046/M/2007 IPCA LABORATORIES LTD 2 3. IN SO FAR AS FOURTH QUESTION IS CONCERNED, LD COUN SEL ON BOTH THE SIDES STATE THAT THE SAME HAS ALREADY BEEN ANSWERED BY THI S COURT IN THE CASE OF LIBERTY INDIA VS CIT REPORTED IN (2009) 317 ITR 218(S C) IN FAVOUR OF THE REVENUE AND AGAINST THE ASSESSEE. 4. THE APPEAL IS DISPOSED OFF ACCORDINGLY WITH A DI RECTION TO THE TRIBUNAL TO RE- COMPUTE THE DEDUCTION IN THE LIGHT OF AFORESAID DECI SION OF THIS COURT. NO ORDER AS TO COSTS. 2.1 IN THE SAID DECISION IN THE CASE OF ASSOCIATED CAPSULES P. LTD. (SUPRA) IT HAS BEEN HELD THAT THE DEDUCTION U/S 80HHC HAS TO BE CO MPUTED ON THE PROFIT OF THE BUSINESS BEFORE REDUCING THE PROFIT ALLOWED U/S 80I A AND SECTION 80IA(9) DOES NOT AFFECT THE COMPUTATION OF DEDUCTION UNDER THE PROVI SIONS OF CHAPTER IX-C AND WOULD ONLY AFFECT THE ALLOWABILITY OF SUCH DEDUCTI ON IN OTHER PROVISIONS SO THAT THE AGGREGATE DEDUCTION U/S 80IA AND OTHER PROVISIONS U NDER CHAPTER VI-A DOES NOT EXCEED THE PROFIT OF BUSINESS. 3 THE LD DR AS WELL AS THE LD AR OF THE ASSESSEE HA VE FAIRLY SUBMITTED THAT IN VIEW OF THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT (SUPRA) IN ASSESSEES OWN CASE, THE COMPUTATION PART OF THE DEDUCTION MAY BE DONE BY THE ASSESSING OFFICER. 4 IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WE DI RECT THE ASSESSING OFFICER TO WORK OUT DEDUCTION IN THE LIGHT OF THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF ASSOCIATED CAPSULES P. LTD. (SUPRA). 5 AS REGARDS THE ISSUE OF DEDUCTION U/S 80IB ON EXP ORT INCENTIVE AND DEPB, THE SAME HAS BEEN DECIDED AGAINST THE ASSESSEE AND IN F AVOUR OF THE REVENUE BY THE HONBLE SUPREME COURT IN THE CASE OF LIBERTY INDIA V. COMMISSIONER OF INCOME-TAX REPORTED IN 317 ITR 218. THE HONBLE HIGH COURT HA S ALSO TAKEN A NOTE OF THIS IN ITA NO. 5046/M/2007 IPCA LABORATORIES LTD 3 THE ORDER PASSED IN THE ASSESSEES APPEAL. ACCORDIN GLY, THIS ISSUE IS DECIDED AGAINST THE ASSESSEE AND IN FAVOUR OF THE REVENUE. 6 SO FAR AS THE OTHER ISSUES INVOLVED IN THE APPEAL OF THE REVENUE IS STAND DISPOSED OFF BY THE ORDER OF THE TRIBUNAL DT 10.10. 2009. 7 IN THE RESULT, THE APPEAL OF THE REVENUE IS PARTL Y ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 26 TH , DAY OF SEPT 2012. SD/- SD/- ( RAJENDRA SINGH ) ACCOUNTANT MEMBER ( VIJAY PAL RAO ) JUDICIAL MEMBER PLACE: MUMBAI : DATED: 26 TH , SEPT 2012 RAJ* COPY FORWARDED TO: 1 APPELLANT 2 RESPONDENT 3 CIT 4 CIT(A) 5 DR /TRUE COPY/ BY ORDER DY /AR, ITAT, MUMBAI