M/s. KEVIN EXPORTS, MUMBAI V. ITO - 14(3)(3), MUMBAI

ITA 6697/MUM/2006

• Counselvise Citation: [2010] 119 COUNSELVISE.COM (IT) 6324 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 20-01-2010
• Assessment Year: 1999-2000
• Appeal Filed On: 11-12-2006
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S RANA
• Section: 80HHC; 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'A' BENCH, MUMBAI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER ITA NO. 6697/MUM/2006 (ASSESSMENT YEAR: 1999-2000) M/S. KEVIN EXPORTS INCOME TAX OFFICER - 14(3)(3) 10 DEVKARAN MANSION 606 EARNEST HOUSE, 6TH FLOOR 2ND FLOOR, PRINCESS STREET VS. NARIMAN POINT, MUMBAI 400021 MUMBAI 400002 PAN - AAAFK 3788 M APPELLANT RESPONDENT APPELLANT BY: MS. AARTI VISSANJI RESPONDENT BY: SHRI S.S. RANA O R D E R PER J. SUDHAKAR REDDY, A.M. THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE CIT(A) XV, MUMBAI DATED 01.09.2006. 2. TWO ISSUES ARISE IN THIS APPEAL, FIRSTLY THE CHALLE NGE TO REOPENING OF THE ASSESSMENT UNDER SECTION 147 AND THE SECOND BEI NG COMPUTATION OF DEDUCTION UNDER SECTION 80HHC WITH RESPECT TO PROFI T ON SALE OF DEPB LICENCE. 3. WE HAVE HEARD MS. AARATI VISASNJI, LEARNED COUNSEL FOR THE ASSESSEE AND SHRI S.S. RANA, THE LEARNED D.R. 4. RETURN OF INCOME IN THIS CASE AS FILED ON 26.11.199 9 AND THE SAME WAS PROCESSED UNDER SECTION 143(1). THERE WAS NO AS SESSMENT DONE UNDER SECTION 143(3). THEREAFTER THE ASSESSMENT WAS REOPE NED BY ISSUING NOTICE UNDER SECTION 148 ON 30.03.2005 ON THE GROUND THAT THE ASSESSEES CLAIM FOR DEDUCTION UNDER SECTION 80HHC, ON DEPB LICENCE, TREATING THE SAME AS EXPORT INCENTIVE, WAS EXCESSIVE. 5. IN OUR CONSIDERED OPINION, REOPENING CANNOT BE FAUL TED. THE A.O. HAS, IN OUR CONSIDERED OPINION, REASONABLE BELIEF THAT I NCOME ESCAPED ITA NO. 6697/MUM/2006 M/S. KEVIN EXPORTS 2 ASSESSMENT DUE TO AN EXCESSIVE CLAIM OF RELIEF UNDE R SECTION 80HHC. WE UPHOLD THE REOPENING RELYING OF THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF RAJESH JHAVERI STOCK BROKERS (P) LTD . 291 ITR 500 (SC). 6. COMING TO THE SECOND ISSUE, BOTH THE PARTIES AGREED THAT THE ISSUE IS COVERED BY THE DECISION OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF KALPATARU COLOURS AND CHEMICALS 233 CTR 313. IN VIE W OF THE MUTUAL AGREEMENT WE SET ASIDE THE ISSUE TO THE FILE OF THE A.O. FOR DECIDING THE ISSUE AFRESH, IN THE LIGHT OF THE DECISION OF KALPATARU C OLOURS AND CHEMICALS (SUPRA). 7. IN THE RESULT, ASSESSEES APPEAL IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH NOVEMBER 2010. SD/- SD/- (V. DURGA RAO) (J. SUDHAKAR REDDY) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 26 TH NOVEMBER 2010 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) XV, MUMBAI 4. THE CIT XIV, MUMBAI CITY 5. THE DR, A BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.