Appeal Details
Counselvise Citation
[2014] 120 COUNSELVISE.COM (IT) 5877 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
CRN Number
Duration Of Justice
1 year(s) 3 month(s) 20 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
26-03-2014
Appeal Filed By
Assessee
Order Result
Partly Allowed
Bench Allotted
E
Assessment Year
2009-2010
Appeal Filed On
06-12-2012
Judgement Text
, , , , IN THE INCOME TAX APPELLATE TRIBUNALE BENCH, MUMB AI BEFORE SHRI D.KARUNAKARA RAO, AM AND SHRI AMIT SHUK LA, JM ITA NO. 7242/MUM/2012 ASSESSMENT YEAR-2009-10 M/S TIME TECHNOPLAST LTD. 102, TODI COMPLEX, 35 SAKI VIHAR ROAD, ANDHERI (E), MUMBAI-400072 / VS. THE ADDL. COMMISSIONER OF INCOME-TAX, RANGE-8(3), MUMBAI. ./ PAN :AAACT2783J ( /ASSESSEE ) .. ( / RESPONDENT ) ! / ASSESSEE BY : SHRI RAKESH JOSHI '# ! / REVENUE BY : S HRI ASHOK SURI # $ / DATE OF HEARING : 26/03/2014 %&' $ / DATE OF PRONOUNCEMENT : 26/03/2014 () () () () / ORDER PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 06/12/2012 IS AGAINST THE ORDER OF THE CIT(A)-18, MUMBAI, DATED 29/10/2012 FO R THE ASSESSMENT YEAR 2009-10. 2. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE FILE D A CHART GIVING PARTICULARS OF THE GROUND, THE RELEVANT NUMBERS OF THE PARAGRAPH FROM ORDERS OF THE AO AND THE CIT(A) AND THE MANNER IN WHICH THE GROUNDS STAND COVERED BY EARLIER OTHER ORDERS OF TH E ITAT FOR THE A.Y.2007-08 & 2008-09 IN THE ASSESSEES OWN CASE IN ITA NO.8126/MUM/2010 & 7576/MUM/2011 RESPECTIVELY. THE SAID CHART IS REPRODUCED AS UNDER:- 2 ITA NO.7242/MUM/2012. M/S TIME TECHNOPLAST LTD. GROUND NO. RELEVANT DISCUSSION IN ASSESSMENT ORDER RELEVANT DISCUSSION IN CIT(A) ORDER COVERED BY ITA NO. 8126/MUM/2010 & 7576/MUM/2011 IN APPELLANT OWN CASE FOR AY 2007-08 & 2008-09 1.DISALLOWANCE OF CLAIM OF DEPRECIATION PAGE 2-3 PARA 3 PAGE 4 PARA 5 AGAINST THE ASSESSEE FOLLOWING DECISION OF BOMBAY HIGH COURT IN CASE OF PLASTIBEND INDIA LTD. (318 ITR 352) ON PAGE 2-3 PARA 3-4. 2.DISALLOWANCE U/S 14A AS PER RULE 8D OF RS.1,63,56,149/- PAGE 5-7 PARA 5-8 PAGE 10 PAGE 11 SET ASIDE THE MATTER TO CIT(A) PAGE 5-7 PARA 9- 12 3.DISALLOWANCE OF DEDUCTION U/S 80IB TO THE EXTENT OF INTEREST INCOME OF RS.78,58,885/- PAGE 8-10 PARA 6 PAGE 13 PARA 14 SET ASIDE THE MATTER CIT(A) TO VERIFY DIRECT NEXUS OF INTEREST PAGE 3-4 PARA 5-6 ADDITIONAL GROUND 1:- NOT ALLOWING NETTING OFF INTEREST EXPENSES WITH INTEREST INCOME FOR THE PURPOSE OF DEDUCTION U/S 80IB ADDITIONAL GROUND 2:- DISALLOWANCE U/S 115JB OF THE AMOUNT COMPUTED FOR THE PURPOSE OF 14A AS PER RULE 8D NO DISCUSSION IN AO ORDER GROUND NOT TAKEN BEFORE CIT(A) PRINCIPALLY DECIDED AGAINST THE APPELLANT BUT SET ASIDE CIT(A) TO DETERMINE THE QUANTUM. PAGE 7-12 PARA 13-16 3. FROM THE ABOVE, IT IS EVIDENT, THE ASSESSEE FAIR LY SUBMITTED THAT THE GROUND NO. 1 STANDS COVERED AGAINST THE ASSESSE E BY THE JURISDICTIONAL HIGH COURT IN THE CASE OF PLASTIBEND INDIA LTD. (318 ITR 3 ITA NO.7242/MUM/2012. M/S TIME TECHNOPLAST LTD. 352. THEREFORE, THE DECISION TAKEN BY THE AO AND T HE CIT(A) IS VALID AND THE SAME IS CONFIRMED. ACCORDINGLY GROUND NO. 1 IS DISMISSED. 4. IT IS THE PRAYER OF THE LD. COUNSEL FOR THE ASSE SSEE THAT GROUND NO. 2 AND 3 ALONGWITH ADDITIONAL GROUND NO. 1 ARE T O BE SET-ASIDE TO THE FILE OF THE CIT(A) FOR RE-ADJUDICATION OF THE S AME. WE ACCORDINGLY DIRECT THE CIT(A) TO HEAR THE ASSESSEE AND ADJUDICA TE THE SAME AFTER GRANTING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE CIT(A) SHALL FOLLOW THE BINDING JUDGMENTS RELEV ANT TO THIS MATTERS OF GIVING SET OFF OF THE INTEREST EXPENSES AGAINST THE INTEREST INCOME FOR THE PURPOSE OF COMPUTING DEDUCTION U/S 8 0IB OF THE ACT. THUS, GROUND NO. 2 AND 3 AND ADDITIONAL GROUND ARE ALLOWED FOR STATISTICAL PURPOSE. 5. IN CONNECTION WITH THE ADDITIONAL GROUND NO.2, IT IS PRAYER OF THE ASSESSEE THE SAME NEEDS TO BE ADMITTED AND ADJU DICATED CONSIDERING THE LEGAL NATURE AND ALSO EXISTING LEGA L PROPOSITION IN THIS REGARD. IT IS A PRAYER OF THE LD. COUNSEL, TH OUGH THE PROVISION OF SECTION 14A ARE APPLICABLE TO THE COMPUTATION OF BO OK PROFIT U/S115JB OF THE ACT, THERE IS A NEED FOR REVISITI NG THE REVENUE AUTHORITIES FOR DETERMINING THE QUANTUM OF DISALLOW ANCES U/S 14A READ WITH RELEVANT RULE 8D OF THE ACT 1961. AFTER HEARING THE PARTIES CONSIDERING THE LEGAL NATURE OF THE ISSUE RAISED IN THE SAID ADDITIONAL GROUND WE ADMIT THE SAME AND THE REMAND THE MATTER TO THE FILE OF THE CIT(A) FOR AFRESH ADJUDICATION. HE GRANT A REAS ONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE IN ACCORDANCE WITH T HE PRINCIPAL OF NATURAL JUSTICE. ACCORDINGLY THE APPEAL OF THE ASS ESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 4 ITA NO.7242/MUM/2012. M/S TIME TECHNOPLAST LTD. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 26/03/ 201 4. () %&' * +(, 26/03/2014 & - . SD/- SD/- AMIT SHUKLA D.KARUNAKARA RAO (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) MUMBAI , +( +( +( +( DATED: 26/03/2014 F{X~{T? P.S. () /$01 21'$ / COPY OF THE ORDER FORWARDED TO : (1) / 34$ / THE ASSESSEE; (2) '# / THE REVENUE; (3) 5() / THE CIT(A); (4) 5 / THE CIT, MUMBAI CITY CONCERNED; (5) 1#8- /$/ , , / THE DR, ITAT, MUMBAI; (6) -93 : / GUARD FILE. 1$ /$ / TRUE COPY () / BY ORDER ; / < ' / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI,
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