METRO EXPORT (I) P.L TD ( AFTER MERGER, KNOWN AS METRO INVESTMENT P. LTD), MUMBAI V. DCIT 5(2), MUMBAI

ITA 5821/MUM/2011

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 8381 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 27-11-2014
• Assessment Year: 2000-2001
• Appeal Filed On: 17-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AKHILENDRA YADAV
• Section: 143(3); 5(2); 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH B , MUMBAI BEFORE SHRI D. KARUNAKAR RAO , ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIAL MEMBER ITA NO. 5821/MUM/2011 ASSESSMENT YEAR: 2000 - 01 M/S. METRO EXPORTERS (INDIA) PVT. LTD. (NOW KNOWN AS METRO INVESTMENT PVT. LTD.) 5, QUEENS DIAMONDS BUILDING, M.P. ROAD, CHARNI ROAD, MUMBAI 400 004 PAN:AACCM 575 B VS. DCIT 5(2) MUMBAI (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI NISHIT GANDHI REVENUE BY : SHRI AKHILENDRA YADAV DATE OF HEARING : 2 7 . 11 . 2014 DATE OF ORDER : 27 . 1 1 .2014 O R D E R PER AMIT SHUKLA , J M : THIS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAINST ORDER DATED 30.06.2011 , PASSED BY THE LD.CIT(A ) - 9 , MUMBAI , FOR THE QUANTUM OF ASSESSMENT PASSED U/S 143(3) FOR THE A.Y. 2000 - 01. 2. THE SOLE ISSUE RAISED IN THE GROUND OF APPEAL BY THE ASSESSEE IS THAT THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DENYING THE DEDUCTION U/S 80HHC IN RESPECT OF DEPB OF RS.39,73,966/ - . 3. THE ASSESSING OFFICER HAS DENIED THE CLAIM OF DEDUCTION U/S 80HHC IN RESPECT OF EXPORT INCENTIVE OF DEPB OF RS.35,76,570/ - AS THE ASSESSEE HAS FAILED TO PROVE THE CONDITIONS GIVEN UNDER THIRD PROVISO TO SECTION ITA NO. 5821/MUM/2011 M/S.METRO EXPORTS (INDIA) PVT. LTD. ASSESSMENT YEAR: 200 0 - 0 1 2 80HHC(3). THE LD.CIT( A) HAS CONFIRMED THE SAID ADDITION FOLLOWING THE DECISION OF THE HON BLE BOMBAY HIGH COURT IN THE CASE OF TOPM A N EXPORTS REPORTED IN 233 CTR 313. 4. BEFORE US THE LEARNED COUNSEL SUBMITTED THAT THE SAID DECISION OF THE HON BLE BOMBAY HIGH COURT HAS NOW BE EN REVERSED BY THE HON BLE SUPREME COURT IN THE CASE OF TOPMEN EXPORTS REPORTED IN 342 ITR PAGE 49 . THE LD. DR ALSO ADMITTED THAT THIS ISSUE NOW SQUARELY STANDS COVERED BY THE DECISION OF THE HON BLE SUPREME COURT. 5. AFTER CONSIDERING THE FINDING GIVEN B Y THE LD.CIT(A), WE FIND THAT NOW THE ISSUE OF CLAIM OF DEDUCTION U/S 80HHC ON DEPB HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE AND THE DECISION OF HON BLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. KALPATRU COLOURS AND CHEMICALS REPORTED IN (2010) 233 CTR (B OM) 313 HAS BEEN REVERSED. THE DECISION OF ITAT SPECIAL BENCH IN THE CASE OF TOPMEN EXPORT VS. CIT HAS BEEN UPHELD BY THE SUPREME COURT. T HUS IN VIEW OF THE LAW UPHELD BY SUPREME COURT ON THIS SCORE, WE HOLD THAT THE ASSESSEE IS ENTITLED FOR CLAIM OF DEDUC TION U/S 80HHC ON DEPB. ACCORDINGLY THE GROUND RAISED BY THE ASSESSEE IS ALLOWED. 6. IN THE RESULT APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONO UNCED IN THE OPEN COURT ON THIS 27 TH DAY OF NOVEMB ER , 2014. SD/ - SD/ - ( D.K ARUNAKAR RAO ) ( AMIT SHUKLA ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 27 . 11 .2014 *SRIVASTAVA ITA NO. 5821/MUM/2011 M/S.METRO EXPORTS (INDIA) PVT. LTD. ASSESSMENT YEAR: 200 0 - 0 1 3 COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR B BENCH // TRUE COPY // BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.