TUFROPES P.LTD, MUMBAI V. DCIT CIR 3(3), MUMBAI

ITA 7469/MUM/2012

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2052 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 11 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Next Hearing Date: 15-09-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 17-12-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K L KANAK
• Section: 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH E, MUMBAI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER ITA NOS.7469 & 7470/M/2012 ASSESSMENT YEARS: 2008-09 & 2009-10 M/S. TUFROPES PVT. LTD., 812-A, EMBASSY CENTRE, NARIMAN POINT, MUMBAI 400 021 PAN: AAACT 8968M VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 3(3), AAYAKAR BHAVAN, MUMBAI - 400020 (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI VIJAY MEHTA, A.R. REVENUE BY : SHRI K.L. KANAK, D.R. DATE OF HEARING : 01.10.2015 DATE OF PRONOUNCEMENT : 11.12.2015 O R D E R PER SANJAY GARG, JUDICIAL MEMBER: THE ABOVE TITLED APPEALS HAVE BEEN PREFERRED BY TH E ASSESSEE AGAINST THE COMMON ORDER DATED 25.09.2012 OF THE COMMISSIONER O F INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] R ELEVANT TO ASSESSMENT YEARS 2008-09 & 2009-10. SINCE THE FACTS AND ISSUES INVO LVED IN BOTH THE APPEALS ARE IDENTICAL IN NATURE, HENCE THE SAME ARE TAKEN T OGETHER AND DISPOSED OF WITH THIS COMMON ORDER. FIRST WE TAKE UP ITA NO.7469/M/ 2012 FOR A.Y. 2008-09. ITA NO.7469/M/2012 FOR A.Y. 2008-09 2. THE MAIN GROUND RAISED BY THE ASSESSEE IN THIS A PPEAL IS AGAINST THE DENIAL OF DEDUCTION, IN RESPECT OF INCOME FROM INTE REST AND COMMISSION INCOME AGGREGATING TO RS.6,14,165/-, MADE BY THE ASSESSING OFFICER (HEREINAFTER REFERRED TO AS THE AO) UNDER SECTION 80IB. ITA NOS.7469 & 7470/M/2012 M/S. TUFROPES PVT. LTD. 2 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS ENGAGED IN THE BUSINESS OF MANUFACTURER OF HDPE/PP ROPE. THE AO O BSERVED THAT THE ASSESSEE HAD CLAIMED DEDUCTION UNDER SECTION 80IB O F RS.6,14,165/- ON ACCOUNT OF INCOME FROM INTEREST AND COMMISSION INCOME. THE AO DISALLOWED THE SAID DEDUCTION ON THE GROUND THAT THE SAME WAS NOT DERIVED FROM THE BUSINESS ACTIVITY. BEING AGGRIEVED, THE ASSESSEE W ENT IN APPEAL BEFORE THE LD. CIT(A). 4. THE LD. CIT(A), RELYING UPON HIS OWN DECISION I N THE CASE OF THE ASSESSEE FOR A.Y. 2007-08, UPHELD THE FINDINGS OF THE AO. AGGRIEVED BY THE DECISION OF THE LD. CIT(A), THE ASSESSEE HAS COME I N APPEAL BEFORE US. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND HAVE ALS O GONE THROUGH THE RECORDS. THE LD. A.R. OF THE ASSESSEE HAS FAIRLY A GREED THAT SO FAR AS THE INTEREST INCOME IS CONCERNED, THE SAME CAN NOT BE S AID TO HAVE BEEN DERIVED FROM MANUFACTURING ACTIVITY OF THE ASSESSEE IN VIEW OF THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF LIBERTY INDI A VS. CIT (2009) 317 ITR 218 (SC). HE HOWEVER SUBMITTED THAT THE AMOUNT CLAIMED AS COMMISSION INCOME, IN FACT, WAS THE REFUND OF THE FREIGHT CHAR GES PAID TO THE SHIPPING AGENCIES. THE FREIGHT CHARGES WAS THE EXPENDITURE I NCURRED IN THE MANUFACTURING PROCESS AND THE REFUND OF THE SAME WA S JUST THE REDUCTION OF THE EXPENDITURE NOT AS AN INCOME FROM NEW OR ANY OTHER SOURCE. BOTH THE LD. REPRESENTATIVES OF THE PARTIES HAVE SUBMITTED THAT THIS CONTENTION NEEDS EXAMINATION/VERIFICATION AT THE HANDS OF THE AO. 6. IN VIEW OF THE ABOVE SUBMISSIONS, WE RESTORE THE MATTER BACK TO THE FILE OF THE AO WITH A DIRECTION TO EXAMINE/VERIFY THE AB OVE CONTENTIONS OF THE ASSESSEE IN RESPECT OF COMMISSION INCOME AND DECIDE THE ISSUE AFRESH AS PER LAW AFTER AFFORDING REASONABLE OPPORTUNITY TO THE A SSESSEE OF BEING HEARD AND SUBMIT THE NECESSARY DOCUMENTS ETC. ITA NOS.7469 & 7470/M/2012 M/S. TUFROPES PVT. LTD. 3 ITA NO.7470/M/2012 FOR A.Y. 2009-10 7. SINCE THE FACTS AND ISSUE INVOLVED IN THIS APPEA L ARE IDENTICAL, HENCE IN VIEW OF OUR OBSERVATIONS MADE ABOVE IN ITA NO.7469/ M/2012 FOR A.Y. 2008- 09, THE SAME ARE DECIDED ACCORDINGLY. 8. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 11.12.2015. SD/- SD/- (N.K. BILLAIYA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 11.12.2015. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.