DCIT 7(1), MUMBAI V. PRINCE PIPES & FITTINGS P. LTD, MUMBAI

ITA 5488/MUM/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 55328 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 06-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80IB

Judgement Text

1 PRINCE PIPES & FITTINGS P LTD IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI C BENCH MUMBAI BENCHES, MUMBAI BEFORE SHRI T R SOOD, AM & SHRI VIJAY PAL RAO, JM ITA NO. 5488/MUM/2010 (ASST YEAR 2007-08) THE DY COMMR OF INCOME TAX 7(1), MUMBAI VS PRINCE PIPES & FITTINGS P LTD 4 TH FL B WING RUBBY HOUSE J K SAWANT MARG DADAR (W), MUMBAI (APPELLANT) (RESPONDENT) PAN NO. AAACP2319J ASSESSEE BY MS MRUGAKSHI K JOSHI REVENUE BY SHRI DEVI SINGH DT.OF HEARING 3 RD OCT 2011 DT OF PRONOUNCEMENT 5 TH , OCT 2011 PER VIJAY PAL RAO, JM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 23.2.2010 OF THE CIT(A) FOR THE AY 2007-08. 2 THE REVENUE HAS RAISED THE FOLLOWING EFFECTIVE GR OUNDS IN THIS APPEAL: I) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AN D IN LAW, THE LD CIT(A) ERRED IN DECIDING THAT THE UNITS I,II,III & V OF TH E ASSESSEE BUSINESS WERE SEPARATE UNIT, EACH OF WHICH WAS SEPARATELY ELIGIBLE TO CLAIM THE DEDUCTION U/S 80IB. II) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD CIT(A) FURTHER ERRED IN DIRECTING THE ASSESSING OFFICER T O EXAMINE WHETHER THE ELIGIBLE UNITS ARE WITHIN THE REASONABLE TIME PERIOD PRESCRIBED U/S 80I(3) AS IT TANTAMOUNT TO SETTING ASIDE OF THE ORDER AND IS BEYON D THE POWERS OF CIT(A). 3 WE HAVE HEARD THE LD DR AS WELL AS THE LD AR OF T HE ASSESSEE AND CONSIDERED THE RELEVANT MATERIAL ON RECORDS. AT THE OUTSET, W E NOTE THAT THE CIT(A) HAS ALLOWED THE CLAIM OF DEDUCTION U/S 80IB BY FOLLOWING THE OR DER OF THE TRIBUNAL IN ASSESSEE 2 PRINCE PIPES & FITTINGS P LTD OWN CASE FOR THE ASSESSMENT YEAR 2004-05 AND 2005- 06. THE LD AR OF THE ASSESSEE FILED A COPY OF THE ORDER OF THE TRIBUNAL IN ASSESS ES OWN CASE. THE TRIBUNAL VIDE ORDER DATED 14.7.2009 FOR THE ASSESSMENT YEARS 2004 -05 & 2005-06 IN ITA NOS.4163 AND 4164/MUM/2008 HAS DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE AS UNDER: 7. WE HAVE PERUSED THE ORDERS AND HAVE HEARD THE RIVA L CONTENTIONS. WE FIND THAT THE CIT(A) HAD ALLOWED THE CLAIM OF THE A SSESSEE FOR TREATING EACH OF THE UNITS AS INDEPENDENT FOR AVAILING DEDUCTION U/S 80IB OF THE ACT RELYING ON THE DECISION OF THE TRIBUNAL IN THE CASE OF M/S PRIN CE PLASTICS INTERNATIONAL PVT LTD., IN ITA NO.222/MUM/2004 DATED 30.3.2006. THIS WAS A SISTER CONCERN OF THE ASSESSEE WERE ALSO THERE WERE FIVE UNITS SIMILARLY P LACED ON WHICH DEDUCTION U/S 80IA/80IB WAS ALLOWED IN ASSESSEES APPEAL. WE ALSO FIND THAT THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2001-02 , THIS TRIBUNAL HAD IN ITS DECISION DATED 22.1.2009 IN ITA NO.2712/MUM/2007, F OLLOWING THE ORDER IN THE CASE OF M/S PRINCE PLASTICS INTERNATIONAL PVT LTD (S UPRA) HELD THAT ASSESSEE WAS ELIGIBLE FOR CLAIMING DEDUCTION U/S 80IA/80IB OF THE ACT CONSIDERING THE UNITS AS SEPARATE AND INDEPENDENT. THEREFORE, WE FIND THAT T HE LD CIT(A) WAS JUSTIFIED IN GIVING RELIEF TO THE ASSESSEE FOR BOTH THE ASSESSMENT YEARS. NOTHING HAS BEEN BROUGHT ON RECORD BY THE REVENUE TO SHOW TH AT THERE WAS ANY NEW UNIT IN THE IMPUGNED ASSESSMENT YEARS WHEREBY A DIFF ERENT LOOK INTO THE MATTER WAS WARRANTED. THEREFORE, IN VIEWS OF THE DECIS IONS OF THIS TRIBUNAL REFERRED SUPRA, WE ARE OF THE OPINION THAT THE APPEAL S OF THE REVENUE HAVE NO MERIT. 4 THEREFORE, RESPECTFULLY FOLLOWING THE ORDER OF TH E TRIBUNAL IN ASSESSEES OWN CASE, WE DECIDE THIS ISSUE IN FAVOUR OF THE ASSESSE E 5 THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED ON THE 5 TH DAY OF OCT 2011. SD/ SD/- ( T R SOOD ) ACCOUNTANT MEMBER ( VIJAY PAL RAO ) JUDICIAL MEMBER PLACE: MUMBAI : DATED: 5 TH , OCT 2011 RAJ* 3 PRINCE PIPES & FITTINGS P LTD COPY FORWARDED TO: 1 APPELLANT 2 RESPONDENT 3 CIT 4 CIT(A) 5 DR /TRUE COPY/ BY ORDER DY /AR, ITAT, MUMBAI