SHRENUJ DIAJEWELS LIMITED, MUMBAI V. DCIT 5(3), MUMBAI

ITA 6514/MUM/2013

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2949 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Assessment Year: 2009-2010
• Appeal Filed On: 06-11-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: G M MAKWANA
• Assessee Lawyers: APURVA R SHAH

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL E BE NCH, MUMBAI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER / I .T.A. NO.6514/MUM/2013 ( / ASSESSMENT YEAR:2009-10 M/S. SHRENUJ DIAJEWELS LTD., UNIT NO. G-20, GEMS & JEWELLERY COMPLEX-II, SEEPZ, ANDHERI (E), MUMBAI-400 096 / VS. THE DCIT 5(3), AAYAKAR BHAVAN, MUMBAI-400 020 ./ ./ PAN/GIR NO. : AAACA 5987D ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY: APURVA R. SHAH / RESPONDENT BY: SHRI G.M. MAKWANA / DATE OF HEARING :05.10.2015 ! / DATE OF PRONOUNCEMENT : 14.10.2015 '# / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST T HE ORDER OF THE LD. CIT(A)-9, MUMBAI DATED 2.09.2013 PERTAININ G TO ASSESSMENT YEAR 2009-10-. 2. THE ONLY GRIEVANCE OF THE ASSESSEE IS THAT THE L D. CIT(A) ERRED IN DENYING DEDUCTION U/S. 10A IN RESPECT OF THE FOL LOWING ITEMS OF INCOME: ITA. NO.6514/M/2013 2 1) SUNDRY CREDITORS WRITTEN BACK RS. 1.98 LKHS 2) SALE OF RESIDUAL GOLD DUST RS. 1.28 LAKHS 3) DISCOUNT RECEIVED RS. 0.07 LAKHS 4) REVERSAL OF SALARY RS. 0.04 LAKHS 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT WH ILE SCRUTINIZING THE RETURN OF INCOME, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS CLAIMED DEDUCTION U/S. 10A OF THE ACT TO THE TU NE OF RS. 6,86,76,009/-. THE AO FOUND THAT THE ASSESSEE HAS CREDITED MISCELLANEOUS INCOME OF RS. 3,37,474/- UNDER THE HE AD OTHER INCOME. THE AO WAS OF THE FIRM BELIEF THAT THE ITEMS OF MIS CELLANEOUS INCOME ARE NOT DERIVED FROM EXPORT OR ARTICLES AND THE REFORE NOT ELIGIBLE FOR DEDUCTION U/S. 10A OF THE ACT. THE AO EXCLUDED RS. 3,37,474/- FROM THE WORKING OF DEDUCTION U/S. 10A OF THE ACT. 4. AGGRIEVED, ASSESSEE CARRIED THE MATTER BEFORE TH E LD. CIT(A) BUT WITHOUT ANY SUCCESS. 5. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE STAT ED THAT SUNDRY CREDITORS ARE OUT OF THE CREDIT BALANCES PERTAINING TO THE PERIOD IN WHICH SEC. 10A DEDUCTIONS HAVE BEEN CLAIMED, SAME I S THE CASE WITH THE REVERSAL OF SALARY. IT IS THE SAY OF THE LD. C OUNSEL THAT THE DISCOUNTS HAVE BEEN RECEIVED ON TRANSACTIONS PERTAI NING TO THE EXPORT BUSINESS OF THE ASSESSEE AND IN SO FAR AS TH E SALE PROCEEDS OF RESIDUAL GOLD DUST IS CONCERNED, THE SAME MAY NOT B E SAID TO BE DERIVED FROM THE EXPORT BUSINESS BUT CERTAINLY FORM S PART OF THE TOTAL TURNOVER OF THE ASSESSEE. ITA. NO.6514/M/2013 3 6. PER CONTRA, THE LD. DEPARTMENTAL REPRESENTATIVE STRONGLY SUPPORTED THE FINDINGS OF THE REVENUE AUTHORITIES. 7. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE AUTH ORITIES BELOW. WE FIND FORCE IN THE CONTENTION OF THE LD. COUNSEL. IN OUR CONSIDERED OPINION, THE ISSUES RELATING TO THE WRITE BACK OF SUNDRY CREDITORS, REVERSAL OF SALARY AND DISCOUNT RECEIVED NEED TO BE VERIFIED BY THE AO TO SEE THAT THESE ENTRIES PERTAIN TO THE PERIOD OF THE CLAIM OF DEDUCTION U/S. 10A. SUBJECT TO THIS VERIFICATION AND AFTER SATISFYING HIMSELF, THE AO IS DIRECTED TO ALLOW THE CLAIM OF D EDUCTION U/S. 10A IN RESPECT OF THESE THREE ITEMS. 8. IN SO FAR AS THE SALE PROCEEDS OF RESIDUAL GOLD DUST IS CONCERNED, IN OUR CONSIDERED OPINION, THE SALE MAY NOT FORM PA RT OF THE EXPORT TURNOVER BUT IS CERTAINLY A PART OF THE TOTAL TURNO VER AND BECAUSE OF WHICH IT IS CERTAINLY A PART OF THE FORMULA FOR COM PUTING THE DEDUCTION U/S. 10A OF THE ACT. THE AO IS DIRECTED ACCORDINGLY. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED IN PART FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH OCTOBER, 2015 SD/- SD/- (SANJAY GARG ) (N.K. BILLAIYA) $% ' /JUDICIAL MEMBER ' / ACCOUNTANT MEMBER & ' MUMBAI; (' DATED : 14 TH OCTOBER, 2015 . % . ./ RJ , SR. PS ITA. NO.6514/M/2013 4 !' #' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ) ( ) / THE CIT(A)- 4. ) / CIT 5. *+, %%-. , -.! , & ' / DR, ITAT, MUMBAI 6. ,/0 1 / GUARD FILE. $ / BY ORDER, * % //TRUE COPY// % / $& ' (DY./ASSTT. REGISTRAR) , & ' / ITAT, MUMBAI