M/s DUFLON POLYMERS PVT. LTD., MUMBAI V. ACIT 8(1), MUMBAI

ITA 6884/MUM/2004

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 49580 (ITAT-MUMBAI)
• Duration Of Justice: 6 year(s) 10 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: K
• Next Hearing Date: 04-07-2011
• Assessment Year: 2001-2002
• Appeal Filed On: 24-09-2004
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P NAIK
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES K, MUMBAI BEFORE SHRI J.SUDHAKAR REDDY (A.M.) AND SMT ASHA VI JAYARAGHVAN (J.M.) ITA NO.6884/MUM/2004 ASSESSMENT YEAR : 2001-2002 M/S. DUFLON POLYMERS PVT. LTD. 3, NEFFIDHARA APARTMENTS, GR. FLR., SHRADDHANAND EXTN. RD., VILE PARLE (E), MUMBAI 400 057. PAN : AAACD1668G VS. THE C.I.T., RANGE 8(1), MUMBAI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI DEEPAK TRALSHAWALA (AR) RESPONDENT BY : SHRI P. NAIK (DR) O R D E R PER J. SUDHAKAR REDDY, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AG AINST THE ORDER OF THE LEARNED CIT (A)-VIII, MUMBAI DATED 20.07.2004 FOR T HE ASSESSMENT YEAR 2001-02 ON THE FOLLOWING GROUNDS: 1. THE LEARNED CIT(A) HAS ERRED IN CONFIRMING THE ADJUSTMENT (REDUCTION) OF DEDUCTION U/S.80IA FROM T HE BUSINESS PROFITS MADE THE ASSESSING OFFICER FOR THE PURPOSE OF COMPUTING DEDUCTION U/S.80HHC. 2. THE LEARNED CIT(A) HAS ERRED IN CONFIRMING THE WRONG INTERPRETATION OF SEC.80IA(9A) MADE BY THE ASSESSIN G OFFICER. 2. AFTER HEARING THE RIVAL CONTENTIONS, WE FIND THA T THE ISSUE IN QUESTION IS NO MORE RES-INTEGRA. THE JURISDICTIONAL HIGH COURT IN THE CASE OF ASSOCIATED CAPSULES (P.) LTD. VS. D.C.I.T., CENTRAL CIRCLE 43, MUMBAI [2011] [197 TAXMAN 84] (BOM) HAS HELD, THAT REASONABLE CON STRICTION OF SECTION 80IA(9) WOULD BE THAT WHERE DEDUCTION IS ALLOWED U/ S.80-IA(1), THEN DEDUCTION COMPUTED UNDER OTHER PROVISIONS UNDER HEA DING C OF CHAPTER VI-A HAS TO BE RESTRICTED TO PROFITS OF BUSINESS TH AT REMAIN AFTER EXCLUDING ITA NO.6884/MUM/2004 ASSESSMENT YEAR : 2001-2002 2 PROFITS ALLOWED AS DEDUCTION U/S.80-IA, SO THAT TOT AL DEDUCTION ALLOWED UNDER HEADING C OF CHAPTER VI-A DOES NOT EXCEED P ROFITS OF BUSINESS. 3. IN VIEW OF THE ABOVE DECISION, WE SET ASIDE THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION IN LINE WI TH THE PROPOSITIONS LAID DOWN IN THE CASE OF ASSOCIATED CAPSULES (P.) LTD.(S UPRA). 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR THE STATISTICAL PURPOSE. ORDER PRONOUNCED ON THIS 27 TH DAY OF JULY, 2011. SD/- (ASHA VIJAYARAGHAVAN) (JUDICIAL MEMBER) SD/- (J.SUDHAKAR REDDY) (ACCOUNTANT MEMBER) MUMBAI, DATED 27.07.2011 JANHAVI COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. COMMISSIONER OF INCOME TAX (APPEALS)-XVI, MUMBA I 4. COMMISSIONER OF INCOME TAX, CITY- , MUMBAI 5. DEPARTMENTAL REPRESENTATIVE, BENCH , MUM BAI //TRUE COPY// BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI