CHHAPARIA EXPORTS, MUMBAI V. JOINT C.I.T RANGE 20(1), MUMBAI

ITA 6730/MUM/2008

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 1570 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2005-2006
• Appeal Filed On: 21-11-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: MUMBAI BEFORE SHRI R.K. GUPTA, JUDICIAL MEMBER AND SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER ITA NO 6730/MUM/2008 (ASSESSMENT YEAR: 2005-06) M/S CHHAPARIA EXPORTS, C/O SHANKARLAL JAIN & ASSOCIATES, 12, ENGINEER BUILDING, 265, PRINCESS STREET, MUMBAI -400 002 PAN: AAAFC 8563 C VS JT COMMISSIONER OF INCOME TAX RANGE 20(1), MUMBAI -400 002 APPELLANT RESPONDENT APPELLANT BY: SHRI S L JAIN RESPONDENT BY: SHRI SANJEEV JAIN ORDER PER R.K. GUPTA, JUDICIAL MEMBER THIS APPEAL FILED BY THE ASSESSEE IS AGAINST THE OR DER OF CIT (A) RELATING TO ASSESSMENT YEAR 2005-06. 2. THE ONLY GROUND RAISED IN APPEAL OF THE ASSESSEE IS AGAINST NOT ALLOWING DEDUCTION U/S 80IB AT RS AT RS 7,15,483/- RECEIVED AS INTERES T ON DELAYED PAYMENTS FROM ITS CUSTOMERS. 3. THE ASSESSING OFFICER DISALLOWED THE CLAIM OF TH E ASSESSEE BY OBSERVING THAT THE INTEREST INCOME RECEIVED BY ASSESSEE IS INCOME FROM OTHER SOURCES, THEREFORE, THE SAME IS NOT ENTITLED FOR DEDUCING U/S 80IB. 4. THE CIT (A) CONFIRMED THE ACTION OF THE ASSESSIN G OFFICER BY OBSERVING THAT HIS PREDECESSOR HAS CONFIRMED DISALLOWANCE FOR EARLIER YEAR I.E. ASSESSMENT YEARS 2003-04 ITA 6730/M/2008 CHHAPARIA EXPORTS 2 AND 2004-05. FACTS REMAINS THE SAME FOR THE YEARS UNDER CONSIDERATION, THEREFORE, HE CONFIRMED THE ACTION OF THE ASSESSING OFFICER. THE LEARNED COUNSEL FOR THE ASSESSEE WHO APPEARED BEFORE THE TRIBUNAL HAS STATED THAT THE TR IBUNAL FOR EARLIER ORDER HAS ALLOWED THE ISSUE IN FAVOUR OF THE ASSESSEE, COPY OF ORDER IN ITA 3741/MUM/2008 FOR ASSESSMENT YEAR 2004-05 DATED 3.7.2009 WAS ALSO FILED. THE TR IBUNAL FOLLOWING THE ORDER OF THE TRIBUNAL FOR EARLIER YEAR I.E. 2003-04 WHEREIN FOLL OWING THE JURISDICTIONAL HIGH COURT JUDGMENT IN (306 ITR 194) THE ISSUE WAS DECIDED IN FAVOUR OF THE ASSESSEE. 5. ON THE OTHER HAND, THE LEARNED DEPARTMENTAL REPR ESENTATIVE PLACED RELIANCE ON THE ORDERS OF THE AO AND THE CIT (A). 6. AFTER CONSIDERING THE ORDER OF THE ASSESSING OFF ICER AND CIT (A) AND ORDER OF THE TRIBUNAL FOR ASSESSMENT YEAR 2004-05 (SUPRA) WE FOU ND THAT CIT (A) DISALLOWED THE CLAIM FOLLOWING THE ORDER OF HIS PREDECESSOR FOR ASSESSME NT YEAR 2004-05. THE ISSUE HAS BEEN DECIDED BY THE TRIBUNAL FOR ASSESSMENT YEAR 2004-05 IN FAVOUR OF THE ASSESSEE, THEREFORE, FOR THE SAME REASONING WE ALLOW THE ISSU E IN FAVOUR OF THE ASSESSEE AND DIRECT THE ASSESSING OFFICER TO ALLOW DEDUCTION U/S 80IB O N THE INTEREST RECEIVED BY ASSESSEE FROM ITS CUSTOMER AT RS 7,15,483/- ON ACCOUNT OF DE LAYED PAYMENT. WE ORDER ACCORDINGLY. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED ON 25TH DAY OF NOVEMBER 2009. SD/- (PRAMOD KUMAR) ACCOUNTANT MEMBER SD/- (R.K. GUPTA) JUDICIAL MEMBER MUMBAI, DATE: 25TH NOVEMBER 2009 ITA 6730/M/2008 CHHAPARIA EXPORTS 3 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) XX, MUMBAI. 4) THE CIT-20, MUMBAI. 5) THE D.R. C BENCH, ITAT, MUMBAI. BY ORDER / / TRUE COPY / / ASSTT. REGISTRAR CHAVAN* I.T.A.T., MUMBAI ITA 6730/M/2008 CHHAPARIA EXPORTS 4 SR.N. EPISODE OF AN ORDER DATE INITIALS CONCERNED 1 DRAFT DICTATED ON 18.11.09 SR.PS 2 DRAFT PLACED BEFORE AUTHOR 24.11.09 SR.PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.PS SR.PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS 7 FILE SENT TO THE BENCH CLERK SR.PS 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER