M/S. PRIVI ORGANICS LTD, MUMBAI V. THE ACIT 4(3), MUMBAI

ITA 7269/MUM/2007

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 1572 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2009
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: K
• Next Hearing Date: 18-11-2009
• Assessment Year: 2001-2002
• Appeal Filed On: 06-12-2007
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: RAJNISH ARVIND
• Section: 80HHC; 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL K BENCH, MUMBAI BEFORE S/SHRI R.K. GUPTA, J.M. AND PRAMOD KUMAR, A. M I.T.A. NO.7269/MUM./2007 (ASSESSMENT YEAR : 2001-02 ) DATE OF HEARING: 18.11.2009 PRIVI ORGANICS LTD., 205, PRINCESS STREET, MUMBAI 400 002 PAN AAACP4717A VS ITO 4(3)3, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI APPELLANT RESPONDENT REVENUE BY : SHRI SAMEER DALAL ASSESSEE BY : SHRI RAJNISH ARVIND O R D E R PER PRAMOD KUMAR, A.M. BY WAY OF THIS APPEAL, THE ASSESSEE HAS CHALLENGED CORRECTION OF LD. CIT(A)S ORDER DATED 27.7.2007, ON THE FOLLOWING GR OUNDS:- 1.1 THE LD. CIT ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER WHEREBY THE INITIATING RE-ASSESSMENT PROCEE DINGS AND FRAMING ASSESSMENT OF THE APPELLANT BY INVOKING THE PROVISI ONS OF SECTION 147 R.W.S. 148 OF THE ACT. 1.2 WHILE DOING SO, THE LD. CIT(A) FAILED TO APPREC IATE THAT THE MANDATORY CONDITIONS FOR INVOKING THE JURISDICTION AND FRAMING THE RE- ASSESSMENT AS LAID DOWN UNDER SECTION 147 R.W.S. 14 8 OF THE ACT WERE NOT FULFILLED. WITH PREJUDICE TO THE ABOVE THE LD. CIT(A) ERRED IN CONFIRMING THE ACTION OF TH E ASSESSING OFFICER WHEREBY THE ASSESSING OFFICER RE-COMPUTED THE DEDUC TION U/S 80HHC OF THE ACT. 2. THE LD. COUNSEL FOR THE ASSESSEE, HOWEVER, SUBMITS THAT HE DOES NOT WISH TO PRESS GROUND OF APPEAL NO.1. 3. GROUND NO.1 IS THUS DISMISSED AS WITHDRAWN. 4. SO FAR AS GROUND NO.2 IS CONCERNED, LD. COUNSEL FOR THE ASSESSEE SUBMITS THAT EVEN THOUGH THE AMOUNT INVOLVED IS INS IGNIFICANT, THE APPEAL HAS BEEN FILED SO AS THE ASSESSEE SHOULD NOT BE CON STRUED TO HAVE ACCEPTED LD. CIT(A)S STAND THAT INDIRECT EXPENSES FOR THE P URPOSE OF COMPUTATION OF DEDUCTION U/S 80HHC OF THE ACT WILL COVER ALL THE E XPENSES NOT DIRECTLY PRIVI ORGANICS LTD. I.T.A. NO.7269/MUM./2007 2 RELATED TO EXPORTS AND NOT, AS CONTENDED BY THE ASS ESSEE, ONLY SUCH INDIRECT EXPENSES AS RELATED TO EXPORTS. 5. HAVING REGARD TO THE FACT THAT THE ASSESSEE HIMSELF ACCEPTS THAT AMOUNT INVOLVED IN THE DISPUTE BEFORE US IS INSIGNI FICANT, AND HE HAS FILED THE APPEAL ONLY FOR THE PURPOSE OF PREEMPTING A POSSIBL E ARGUMENT BY THE REVENUE AUTHORITIES IN RESPECT OF LATER ASSESSMENT YEARS, WE SEE NO NEED TO ADJUDICATE ON THIS ISSUE EITHER. WE, HOWEVER, MAKE IT CLEAR THAT THE ASSESSEE IS AT LIBERTY TO TAKE UP THIS ISSUE AND SUCH LEGAL ARGUMENTS AS HE MAY WISH TO ADOPT FOR HIS STAND, IN OTHER ASSESSMENT YEARS. TO THAT EXTENT, THIS DECISION WILL OBVIOUSLY NOT BE TREATED AS PRECEDENCE ON MERI TS. 6. GROUND NO.2 IS ALSO DISMISSED. 7. IN THE RESULT, ASSESSEES APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25.11.2009. SD/- R.K. GUPTA JUDICIAL MEMBER SD/- PRAMOD KUMAR ACCOUNTANT MEMBER MUMBAI, DATED: 25.11.2009 COPY TO : (1) THE ASSESSEE (2) THE RESPONDENT (3) THE CIT(A), MUMBAI, CONCERNED (4) THE CIT, MUMBAI CITY CONCERNED (5) THE DR, K BENCH, ITAT, MUMBAI TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI PRADEEP PRADEEP PRADEEP PRADEEP PRIVI ORGANICS LTD. I.T.A. NO.7269/MUM./2007 3 DATE INITIAL 1. DRAFT DICTATED ON 19.11.2009 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 20.11.2009 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 20.11.2009 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 20.11.2009 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 20.11.2009 SR.PS/PS 6. DATE OF PRONOUNCEMENT 25.11.2009 SR.PS 7. FILE SENT TO THE BENCH CLERK 25.11.2009 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER