RAJDHANI CRAFTS, Jaipur V. DCIT, Jaipur

ITA 557/JPR/2016

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3269 (ITAT-JAIPUR)
• Duration Of Justice: 3 year(s) 5 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 26-05-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MANMOHAN KANDPAL ACITOSDDR DHK
• Keywords: Business income
• Section: 143(3); 10B; 251

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ T;IQJ U;K;IHB] T;IQJ T;IQJ U;K;IHB] T;IQJ T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH JESK LH-'KEKZ] YS[KK LNL; DS LE{K BEFORE : SHRI RAMESH C.SHARMA, ACCOUNTA NT MEMBER VK;DJ VIHY LA-@ ITA NO. 557/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2011-12 M/S. RAJDHANI CRAFTS C-180, ROAD NO. 9J, VKI AREA JAIPUR CUKE VS. THE ACIT CIRCLE-4, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AADFR 7865 B VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI SATISH GUPTA, CA JKTLO DH VKSJ LS@ REVENUE BY: SHRI MANMOHAN KANDPAL, ACIT(OSD)-DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 22/11/2019 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 25 /11/2019 VKNS'K@ ORDER PER RAMESH C. SHARMA, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE LD. CIT(A)-2, JAIPUR DATED 30-11-2015 FOR THE ASSESS MENT YEAR 2011-12, IN THE MATTER OF ORDER PASSED U/S 143(3) OF THE I. T. ACT, 1961. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL . 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LOWER AUTHORITIES GROSSLY ERRED IN NOT ALLOWING THE BENEFIT OF SECTION 10B OF THE I.T. ACT, 1961 FOR RS. 2,87,3 13/-. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE LD. CIT(A) GROSSLY ERRED IN NOT DISPOSING OFF T HE ITA NO.557/JP/2016 M/S. RAJDHANI CRAFTS, JAIPUR VS ACIT, CIRCLE - 4, JAIPUR 2 APPLICATION FOR ACCEPTANCE OF ADDITIONAL GROUND OF APPEAL WHICH WAS AS FOLLOWS:- ON THE FACTS AND CIRCUMST ANCES OF THE CASE AND IN LAW THE LD. AO GROSSLY ERRED IN ADJ USTING LOSS OF ONE ELIGIBLE UNIT I.E. VKI UNIT FOR RS. 8,16,410 /- OUT OF PROFIT OF ANOTHER ELIGIBLE UNIT JETPURA UNIT. 2.1 DURING THE COURSE OF HEARING, THE LD.AR OF THE ASSESSEE HAS NOT PRESSED THE GROUND NO. 2 FOR WHICH THE LD. DR HAS N O OBJECTION. HENCE, THE GROUND NO. 2 OF THE ASSESSEE IS DISMISSED BEING NOT PRESSED. 3.1 THE GROUND NO. 1 OF THE ASSESSEE IS REGARDING N OT ALLOWING THE BENEFIT AMOUNTING TO RS. 2,87,313/- U/S 10B OF THE ACT. 3.2 RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORDS P ERUSED. AT THE OUTSET OF THE HEARING, THE LD.AR OF THE ASSESSEE PL ACED ON RECORD THE ORDER OF THE TRIBUNAL IN ASSESSEE'S OWN CASE (ITA NO. NO. 768/JP/2013 FOR THE ASSESSMENT YEAR 2008-09 DATED 22-01-2016) WHEREIN S IMILAR CLAIM OF DEDUCTION OF ASSESSEE WAS ALLOWED BY OBSERVING AS UNDER:- 2.2 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSE D THE MATERIALS AVAILABLE ON RECORD. THE HON'BLE RAJA STHAN HIGH COURT IN THE CASE OF CIT VS. HYCRON INDIA LTD . , 308 ITR 251 HAS HELD THAT IF THE INCOME IS EARNED BY T HE ASSESSEE ON THE DEPOSITS WHICH ARE INTRINSICALLY LI NKED TO ASSESSEES BUSINESS THEN THE SAME WILL BE ELIGIBLE AS BUSINESS INCOME U/S 10B OF THE ACT. SIMILAR VIEW HAS BEEN TA KEN BY THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS. AL FA LAVAL (INDIA) LTD. 294 ITR 70. IN MY CONSIDERED VIEW, THE INTEREST HAS BEEN EARNED AND FREIGHT REBATE HAS BEEN OBTAINE D ON THE ACTIVITIES WHICH ARE INTRINSICALLY LINKED TO THE BU SINESS OF THE ASSESSEE. IN VIEW THEREOF AND RESPECTFULLY THE ABOV E JUDICIAL PRECEDENTS, THE INCOME IS ELIGIBLE U/S 10B OF THE A CT. THUS THE APPEAL OF THE ASSESSEE IS ALLOWED. ITA NO.557/JP/2016 M/S. RAJDHANI CRAFTS, JAIPUR VS ACIT, CIRCLE - 4, JAIPUR 3 TAKING INTO CONSIDERATION THE FACTS, CIRCUMSTANCES OF THE CASE AND THE ORDER OF THE ITAT JAIPUR BENCH (SMC) (SUPRA), THE G ROUND NO. 1 OF THE ASSESSEE IS ALLOWED. 4.0 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED IN PART. ORDER PRONOUNCED IN THE OPEN COURT ON 25 /11/2 019. SD/- JESK LH 'KEKZ (RAMESH C. SHARMA) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 25/11/ 2019 *MISHRA VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. RAJASTHAN CRAFTS, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE ACIT, CIRCLE - 4, JAIPUR 3. VK;DJ VK;QDRVIHY ) @ CIT(A), 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO.557/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR