DCIT, CHENNAI V. M/s. Amsteel Castings Pvt. Ltd., CHENNAI

ITA 534/CHNY/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 8212 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2010
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 02-09-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 22-04-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P B SEKARAN
• Assessee Lawyers: R M NARAYANAN
• Section: 80HHC; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHENNAI BENCH B : CHENNAI [BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI ABRAHAM P GEORGE, ACCOUNTANT MEMBER] I.T.A.NOS.532 TO 534/MDS/10 ASSESSMENT YEARS : 2002-03 TO 2004-05 THE DY. CIT COMPANY CIRCLE I(1) CHENNAI VS M/S AMSTEEL CASTINGS PVT. LTD 1C, PRINCE APARTMENTS 59, ORMES ROAD KILPAUK, CHENNAI 600010 [PAN - AAACA5352Q] (APPELLANT) (RESPONDENT) C.O.NOS.23 TO 25/MDS/10 ASSESSMENT YEARS : 2002-03 TO 2004-05 M/S AMSTEEL CASTINGS PVT. LTD 1C, PRINCE APARTMENTS 59, ORMES ROAD KILPAUK, CHENNAI 600010 VS THE DY. CIT COMPANY CIRCLE I(1) CHENNAI (CROSS OBJECTOR) (RESPONDENT) DEPARTMENT BY : SHRI P.B SEKARAN ASSESSEE BY : SHRI R.M. NARAYANAN O R D E R PER BENCH: THE APPEALS BY THE REVENUE AND THE CRO SS OBJECTIONS BY THE ASSESSEE, FOR ASSESSMENT YEARS 2002-03 TO 2004-05, ARE DIRECTED AGAINST SEPARATE ORDERS OF THE LD. CIT(A), BUT DA TED 19.1.2010. ITA 532 TO 534/10 CO 23 TO 25/10 :- 2 -: 2. THE ONLY ISSUE INVOLVED IN THESE APPEALS IS WITH REGARD TO THE INCLUSION OF THE ENTIRE SALE PROCEEDS OF DEPB BY TH E ASSESSING OFFICER AS AGAINST THE PROFIT ON SALE OF DEPB LICENSE TO BE EXCLUDED IN THE COMPUTATION. AS THE FACTS IN ALL THE ASSESSMENT YEARS ARE IDENTICAL, WE NARRATE THE FACTS AS OBTAINING IN ASSESSMENT YEA R 2002-03. THE ASSESSEE FILED ITS RETURN OF INCOME FOR ASSESSMENT YEAR 2002-03 DECLARING A TOTAL INCOME OF ` 1,92,54,106/- ON 22.10.2002. LIMITED SCRUTINY ASSESSMENT U/S 143(2)(I) WAS COMPLETED BY THE ASSESSING OFFICER ON 27.12.2004 AT AN INCOME OR ` 2,01,80,050/-. THE ASSESSEE HAD CLAIMED DEDUCTION U/S 80HHC ON ITS DEPB RECEIPT S. THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAS NOT SHOWN TH AT IT HAS FULFILLED THE CONDITIONS LAID DOWN FOR CLAIMING DEDUCTION ON DEPB. HENCE, THE ASSESSMENT WAS REOPENED BY ISSUING NOTICE U/S 148 DATED 8.3.2007. THE ASSESSMENT WAS FINALLY COMPLETED ON A TOTAL INC OME OF ` 3,47,17,417/-. AGGRIEVED, THE ASSESSEE FILED APP EAL BEFORE THE LD. CIT(A). RELYING ON THE DECISION OF THE SPECIAL BENCH IN THE CASE OF M/S TOPMAN EXPORTS 318 ITR (AT) 87(MUM), THE LD. CI T(A) HAS DIRECTED THE ASSESSING OFFICER TO INCLUDE THE PROFI T ON SALE OF DEPB WHILE COMPUTING DEDUCTION U/S 80HHC AND NOT THE ENT IRE SALE PROCEEDS AND ALLOW APPROPRIATE RELIEF AFTER DUE VERIFICATION . FOR ASSESSMENT YEARS 2003-04 AND 2004-05 ALSO THE LD. CIT(A) HAS I SSUED SIMILAR DIRECTION BASED ON HIS ORDER FOR ASSESSMENT YEAR 2 002-03. AGAINST ITA 532 TO 534/10 CO 23 TO 25/10 :- 3 -: THIS DIRECTION, THE REVENUE IS IN APPEAL BEFORE US ON THE GROUND THAT APPEAL HAS BEEN PREFERRED BY THE DEPARTMENT AGAINS T THE SPECIAL BENCH DECISION BEFORE THE HIGH COURT AND THE HON' BLE HIGH COURT HAS PASSED A JUDGMENT BY REVERSING THE ABOVE SPECIAL BE NCH DECISION BY MAKING CERTAIN OBSERVATIONS. BUT A COPY OF THE SAM E COULD NOT BE FILED NOR CITATION COULD BE GIVEN. THEREFORE, IN THE GIV EN CIRCUMSTANCES, WE ARE RESTORING THIS ISSUE TO THE FILE OF THE ASSESSI NG OFFICER TO DECIDE THE SAME IN THE LIGHT OF THE LATEST DECISION AVAILABLE ON THIS ISSUE. THE ASSESSING OFFICER SHALL GIVE OPPORTUNITY OF HEARING TO THE ASSESSEE. ACCORDINGLY, ALL THE APPEALS OF THE REVENUE ARE ALL OWED FOR STATISTICAL PURPOSES. 3. IN THE CROSS OBJECTIONS FILED BY THE ASSESSEE, N O MATERIAL GROUNDS HAVE BEEN RAISED, SO, THESE ARE BEING DISMI SSED. 4. IN THE RESULT, THE APPEALS BY THE REVENUE ARE ALLO WED FOR STATISTICAL PURPOSES WHEREAS THE CROSS OBJECTIONS B Y THE ASSESSEE ARE DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT O N 9.9.2010. SD/- SD/- ( ABRAHAM P GEORGE ) ACCOUNTANT MEMBER ( HARI OM MARATHA ) JUDICIAL MEMBER DATED: 9 TH SEPTEMBER, 10 RD COPY TO: APPELLANT /RESPONDENT/CIT(A)/CIT/DR