M/s. Pyramid Plastics, Daman V. The ACIT.,Vapi Circle, Vapi

ITA 579/AHD/2010

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0519 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 28-02-2013
• Assessment Year: 2004-2005
• Appeal Filed On: 22-02-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAHUL KUMAR
• Assessee Lawyers: S N SOPARKAR
• Section: 80HHC; 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD A BENCH BEFORE: SHRI D.K. TYAGI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNT ANT MEMBER M/S. PRAMID PLASTICS PAN NO. AADFP1691B (APPELLANT) VS . ASSISTANT COMMISSIONER OF INCOME-TAX, VAPI CIRCLE-VAPI (RESPONDENT) REVENUE BY : SRI RAHUL KUMAR, SR.D.R. ASSESSEE BY : SRI S.N. SOPARKAR, A.R. DATE OF HEARING : 01-3-2013 DATE OF PRONOUNCEMENT : 15-03-2013 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER:- IT IS A RECALLED MATTER VIDE ORDER DATED 05-10-201 2 IN M.A. NO. 147/AHD/2012. 2. HONBLE TRIBUNAL HAS RECALLED ITS EARLIER ORDER DATED 23-03-2012 IN RESPECT OF GROUND NOS. 1 TO 4 WHICH RELATE TO THE I SSUE WHETHER DEDUCTION U/S 80HHC AS WELL AS SECTION 80IB OF THE ACT IS TO BE C OMPUTED ON THE NET INCOME OR ON THE GROSS INCOME. AT THE TIME OF HEAR ING LEARNED COUNSEL FOR THE ASSESSEE PLACING RELIANCE ON THE FOLLOWING TWO HIGH COURT DECISIONS ITA NO. 579/AHD/2010 A.Y.:-2004-05 I.T.A NO. 579/ADH/2010 A.Y. 2004-05 PAGE M/S PYRAMID PLASTICS VS. ACIT 2 SUBMITTED THAT SECTION 80IA(9) DID NOT AFFECT COMPU TABILITY OF DEDUCTION IN VARIOUS PROVISIONS UNDER THE HEADING C OF CHAP TER-VIA OF THE ACT, AND ONLY AFFECT THE ALLOWABILITY OF SUCH DEDUCTIONS UND ER OTHER PROVISIONS SO THAT THE AGGREGATE DEDUCTION U/S 80IA AND OTHER PROVISIO NS OF CHAPTER VIA DO NOT EXCEED 100% PROFITS OF THE BUSINESS. 1. ASSOCIATED CAPSULES PVT. LTD. V DCIT 332 ITR 42 (BOMB) 2. CIT V MILLIPORE INDIA PVT. LTD 341 ITR 219 (KAR ). IT WAS FURTHER SUBMITTED THAT CO-ORDINATE BENCHES OF THIS TRIBUNAL HAS ALSO DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE FOLLOWI NG THESE TWO JUDGMENTS. IT WAS, THEREFORE, PRAYED THAT FOLLOWING THESE DECISIO NS THE ASSESSEES APPEAL MAY KINGLY BE ALLOWED. LD. D.R. ON THE OTHER HAND PLACED RELIANCE ON THE DECISION OF SPECIAL BENCH OF THE CHENNAI TRIBUNAL I N THE CASE OF ASSTT. COMMISSIONER OF I.T VS. ROGINI GARMENTS AND OTHERS 108 ITD 49 AND SUBMITTED THAT THE CLAIM OF THE ASSESSEE MAY KINDLY BE DISALLOWED AS THERE IS NO DECISION OF THE JURISDICTIONAL HIGH COURT ON THI S ISSUE. 3. AFTER HEARING BOTH THE PARTIES AND PERUSING THE RECORD, WE FIND THAT NOW JUDGMENTS OF TWO DIFFERENT HIGH COURTS ARE AVAI LABLE ON THIS ISSUE, THEREFORE, DECISION OF SPECIAL BENCH OF THE TRIBUNA L IS NO MORE A GOOD LAW ON THE ISSUE. WE FURTHER FIND THAT IN THE CASE OF ASSOCIATED CAPSULES PVT. LTD. V DCIT(SUPRA) HONBLE BOMBAY HIGH COURT HAS HE LD THAT THE TRIBUNAL WAS NOT RIGHT IN HOLDING THAT AS PER SECTION 80IA(9 ) OF THE INCOME TAX ACT THE AMOUNT OF PROFIT ALLOWED AS DEDUCTION U/S 80-IA (1) OF THE INCOME TAX ACT HAS TO BE REDUCED FROM THE PROFIT OF THE BUSINE SS OF THE UNDERTAKING WHILE COMPUTING DEDUCTION UNDER ANY OTHER SECTION UNDER CHAPTER VI-A OF I.T.A NO. 579/ADH/2010 A.Y. 2004-05 PAGE M/S PYRAMID PLASTICS VS. ACIT 3 THE INCOME TAX ACT. RESPECTFULLY FOLLOWING THIS JU DGMENT THE ASSESSING OFFICER IS DIRECTED TO RE-COMPUTE DEDUCTION U/S 80H HC ACCORDINGLY. THESE GROUNDS ARE ALLOWED FOR STATISTICAL PURPOSE. 4. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (A. MOHAN ALANKAMONY) ( D.K.TYAGI) ACCOUNTANT MEMBER J UDICIAL MEMBER AHMEDABAD : DATED 15 /03/2013 AK / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. / CONCERNED CIT 4. - / CIT (A) 5. , ! , '# / DR, ITAT, AHMEDABAD 6. $% &' / GUARD FILE. BY ORDER/ ( / ' ) ! , '# STRENGTHENED PREPARATION & DELIVERY OF ORDERS IN TH E ITAT 1) DATE OF TAKING DICTATION 04-03-2013 2) DIRECT DICTATION BY MEMBER STRAIGHT ON COMPUTER/LAPTOP/DRAGON DICTATE N.A. 3) DATE OF TYPING & DRAFT ORDER PLACE BEFORE MEMBER 05-03-2013 4) DATE OF CORRECTION 06-03-2013 5) DATE OF FURTHER CORRECTION XXXX 6) DATE OF INITIAL SIGN BY MEMBERS 11-03-2013 7) ORDER UPLOADED ON 01-04-2013 8) ORIGINAL DICTATION PAD HAS BEEN ENCLOSED IN THIS FILE YES 9) ORDER SENT TO BENCH CLERK 15-03-2013