ITO 20(1)(4), MUMBAI V. KUMAR AUTO SALES, MUMBAI

ITA 6652/MUM/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3558 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2016
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 03-11-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MORYA PRATAP
• Assessee Lawyers: VIPUL K MODY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES A, MUMBAI BEFORE SHRI R.C.SHARMA (AM) AND SHRI RAM LAL NEGI (JM ) ITA NO. 6652/MUM/2014 ASSESSMENT YEAR: 2010-11 THE ITO 20(1)(4), ROOM NO. 608, 6 TH FLOOR, PIRAMAL CHAMBER, PAREL, MUMBAI- 400012. VS. M/S. KUMAR AUTO SALES, 1004, KANCHANGANGA, 9/10 MANISH NAGAR, J.P.ROAD, 4 BUNGLOW, ANDHERI(W), MUMBAI- 400053. PAN:-AAHFK2427N (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI. MORYA PRATAP RESPONDENT BY : SHRI. NITESH JOSHI & VIPUL K. MODY DATE OF HEARING: 3 0/05/2016 DATE OF PRONOUNCEMENT: 31/05/20 16 O R D E R PER RAM LAL NEGI, JM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST ORDER DT. 28/08/2014 PASSED BY THE LD. CIT(APPEALS)-31, MUMBA I, FOR THE ASST. YEAR 2010-11. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, A PARTNERSHIP FIRM ENGAGED IN THE BUSINESS OF MANUFACTURING AND TRADING OF VARIOU S TYPES OF AUTO ACCESSORIES, SPARE PARTS, COMPONENTS, TOOLS AND EQUIPMENTS, VEHI CLE DECORATIVE ITEMS ETC., FILED ITS RETURN OF INCOME DECLARING THE TOTAL INCO ME AS NIL AFTER CLAIMING DEDUCTION U/S 80-IC OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) TO THE TUNE OF RS. 1,76,90,440/- AFTER SCRUTINY, ASSESSMENT ORD ER U/S 143(2) OF THE ACT, 2 ITA NO. 6652/MUM/2013 ASSESSMENT YEAR: 2010-11 WAS PASSED BY THE ASSESSING OFFICER DETERMINING THE TOTAL INCOME AT RS.1,30,54,010/-. 3. THE ASSESSEE CHALLENGED THE ASSESSMENT ORDER BY FILING APPEAL BEFORE THE LD.CIT(A) INTER ALIA ON THE GROUND THAT THE AO HAS ERRED IN REJECTING T HE APPELLANTS CLAIM UNDER SECTION 80IC OF THE ACT. TH E CIT(A) FOLLOWING THE DECISION OF ITAT MUMBAI IN ASSESSEES OWN CASES ITO VS. M/S KUMAR AUTO SALES, ITA NO. 7505/MUM/2010 & ITA NO. 4762/MUM/201 2 FOR THE ASSESSMENT YEARS 2007-08 AND 2009-10 RESPECTIVELY, ALLOWED THIS GROUND OF APPEAL. AGGRIEVED BY THE IMPUGNED ORDER PASSED BY T HE LD. CIT(A) THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL ON THE FOLLOWING G ROUNDS OF APPEAL:- I. THE CIT(A) HAS ERRED IN LAW AND IN CIRCUMSTANCE OF THE CASE IN ALLOWING RS. 1,76,90,440/- AS DEDUCTION U/S 80IC OF THE I.T.ACT, 1961 CONSIDERING THE ASSESSEES BUSINESS ACTIVITY A S MANUFACTURING INSTEAD OF ASSEMBLING LUGGAGE CARRIERS, WHEEL CAPS ETC. II. THE APPELLANT PRAYS THAT THE ORDER OF THE CIT(A ) ON THE ABOVE GROUNDS BE SET ASIDE AND THAT OF THE AO BE RESTORED . 4. AT THE VERY OUTSET, THE LD. AUTHORISED REPRESENT ATIVE (AR) POINTED OUT THAT THE APPEAL OF THE ASSESSEE IS COVERED BY THE DECISI ON DATED. 27/08/2013 RENDERED BY THE ITAT, MUMBAI IN ASSESSEES OWN CAS E IN ITA NO. 7505/M/10 & ITA NO. 4762/M/12 FOR THE ASST. YEAR 2007-08 & 20 09-10. SINCE THE TRIBUNAL HAS DECIDED THE IDENTICAL ISSUE IN FAVOUR OF THE ASSESSEE, THE PRESENT APPEAL FILED BY THE REVENUE IS LIABLE TO BE DISMISS ED. ON THE OTHER HAND, THE LD. DEPARTMENTAL REPRESENTATIVE (DR) SUBMITTED THAT THE ORDER PASSED BY THE LD. CIT(A) DOES NOT SUFFER FROM ANY LEGAL INFIRMITY. 3 ITA NO. 6652/MUM/2013 ASSESSMENT YEAR: 2010-11 5. WE HAVE HEARD THE PARTIES AND ALSO PERUSED THE MATERIAL ON RECORD IN THE LIGHT OF THE RESPECTIVE SUBMISSIONS OF THE PARTIES. WE NOTICE THAT IN ASSESSEES OWN CASE ITO VS. M/S KUMAR AUTO SALES FOR THE A.Y. 2007-08 & 2009- 10(SUPRA), THE COMMON GROUND OF APPEAL WAS THAT THE CIT(A) HAS ERRED IN LAW AND IN CIRCUMSTANCES OF THE CASE AND IN ALLOWING D EDUCTION U/S 80IC OF THE I.T.ACT, CONSIDERING THE ASSESSEES BUSINESS ACTIVI TY AS MANUFACTURING INSTEAD OF ASSEMBLING LUGGAGE CARRIERS, WHEEL CAPS ETC. TH E CO-ORDINATE BENCH FOLLOWING THE RATIO LAID DOWN BY THE HONBLE SUPREM E COURT IN THE CASE OF COMPUTER GRAPHICS VS. CIT HONBLE JURISDICTIONAL HI GH COURT IN CIT VS. SUPREME GRAPHICS CREATION P. LTD. [276 ITR 668(BOM) ] , HONBLE PUNJAB AND HARYANA HIGH COURT IN THE CASE OF CIT VS. SHRI. MAHESH CHANDRA SHARMA [308 ITR 222 (P&H] HAS DECLINED TO INTERFERE WITH THE ORDER PASSED BY THE LD. CIT(A) AND DISMISSED THE REVENUES APPEAL HOLDING AS UNDER :-. IN VIEW OF THE AFOREMENTIONED POSITION OF LAW, WE ARE OF THE OPINION THAT LD. CIT(A) DID NOT COMMIT ANY ERROR IN HOLDING THAT THE ACTIVITIES OF THE ASSESSEE WERE IN THE NATURE OF MANUFACTURING, THERE FORE, THE ASSESSEE IS ENTITLED TO GET DEDUCTION UNDER SECTION 80 IC OF TH E ACT. WE DECLINE TO INTERFERE IN THE RELIEF GRANTED BY THE LD. CIT(A) A ND THE APPEALS FILED BY THE REVENUE ARE DISMISSED. 6. RESPECTFULLY FOLLOWING THE DECISION OF THE CO-OR DINATE BENCH IN ASSESSEES OWN CASE FOR THE A.Y. 2007-08 & 2009-10, WE HOLD TH AT THE IMPUGNED ORDER DOES NOT SUFFER FROM ANY LEGAL INFIRMITY TO INTERFE RE WITH. THE ORDER OF THE LD. CIT(A) IS IN ACCORDANCE WITH THE SETTLED POSITION O F LAW. WE, THEREFORE, UPHOLD THE SAME AND DISMISS THE APPEAL. 7. IN THE RESULT APPEAL OF THE ASSESSEE FOR THE A.Y . 2010-11 IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT 31 ST MAY, 2016. 4 ITA NO. 6652/MUM/2013 ASSESSMENT YEAR: 2010-11 SD/- SD/- ( R.C.SHARMA ) (RAM LAL NEGI) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED: 31/05/2016 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A)- 4. / CIT 5. !' , $ !'% , / DR, ITAT, MUMBAI 6. &' ( / GUARD FILE. / BY ORDER, ) //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI PRAMILA