SHRI PRAKASH PRABHUDAS MANDAVIA, MUMBAI V. ACIT 13(2)NOW ACIT-17(2), MUMBAI

ITA 555/MUM/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7323 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 30-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N HEMALATHA
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'SMC' BENCH, MUMBAI BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER ITA NO. 555/MUM/2018 (ASSESSMENT YEAR: 2010-11) SHRI PRAKASH PRABHUDAS MANDAVIA 201, POOJA APTS., CROFT LANE ZANTACRUZ (W), MUMBAI 400054 VS. A C I T - 13(2) [NOW ACIT - 17(2)] ROOM NO. 123A, 1ST FLOOR AAYAKAR BHAVAN, M.K. ROAD MUMBAI 400020 PAN AACPM2814J APPELLANT RESPONDENT APPELLANT BY: SHRI KUMAR KALE RESPONDENT BY: MS. N. HEMALATHA DATE OF HEARING: 26.04.2018 DATE OF PRONOUNCEMENT: 11.05.2018 O R D E R PER R.C. SHARMA, AM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-28, MUMBAI DATED 10.10.2017 FOR A.Y. 2010-11 , IN THE MATTER OF ORDER PASSED UNDER SECTION 143(3) INCOME TAX ACT (H EREINAFTER THE ACT). 2. THE ASSESSEE IS BASICALLY AGGRIEVED BY THE ORDER OF THE LOWER AUTHORITIES DECLINING CLAIM OF DEDUCTION UNDER SECT ION 10A OF THE ACT ON THE INCOME ENHANCED DURING ASSESSMENT PROCEEDINGS. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN PROCESSING OF COMPUTER CHIPS AND PERIPHERALS. DURIN G THE COURSE OF SCRUTINY ASSESSMENT THE AO MADE ADHOC DISALLOWANCE IN RESPECT OF VARIOUS EXPENSES WHICH LED TO INCREASE IN ASSESSEES INCOME . FURTHER, WHILE GRANTING DEDUCTION UNDER SECTION 10A OF THE ACT, TH E AO DID NOT ALLOW THE DEDUCTION UNDER SECTION 10A ON THE ENHANCED INCOME. 4. THE ISSUE IS SQUARELY COVERED BY THE DECISION OF TH E HON'BLE BOMBAY HIGH COURT REPORTED AT 330 ITR 174, WHEREIN IT WAS HELD THAT EXEMPTION/ DEDUCTION UNDER SECTION 10A SHOULD BE GRANTED ON EN HANCED BUSINESS ITA NO. 555/MUM/2018 SHRI PRAKASH PRABHUDAS MANDAVIA 2 INCOME. ACCORDINGLY THE AO IS DIRECTED TO GIVE EXEM PTION/DEDUCTION UNDER SECTION 10A OF THE ACT ON ENHANCE INCOME. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED IN TERMS INDICATED HEREINABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH MAY, 2018. SD/ - (R.C. SHARMA) ACCOUNTANT MEMBER MUMBAI, DATED: 11 TH MAY, 2018 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) -28, MUMBAI 4. THE PR. CIT - 17, MUMBAI 5. THE DR, SMC BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.