DCIT RG 8(3), MUMBAI V. SHREE PAR FRAGRANCE P.LTD, MUMBAI

ITA 7525/MUM/2012

• Counselvise Citation: 752519914 RSA 2012
• Duration Of Justice: 1 year(s) 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2009-2010
• Appeal Filed On: 20-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK SURI
• Assessee Lawyers: R C MODI
• Section: 143(3); 80IB

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI , , , BEFORE SHRI SANJAY ARORA , ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA , JUDICIAL MEMB ER . / ITA NO. 7525 /MUM./ 2012 ( / ASSESSMENT YEAR : 20 0 9 10 ) ASSTT. COMMISSIONER OF INCOME TAX CIRCLE 8 ( 3 ), MUMBAI .. / APP ELLANT V/S SHREE PAR FRAGRANCE PVT. LTD. 981, SOLITAIRE CORPORA TE PARK CHAKALA, ANDHERI (EAST) MUMBAI 400 093 .... / RESPONDENT ./ PERMANENT ACCOUNT NUMBER AAFCS3683K / REVENUE BY : MR. ASHOK SURI / ASSESSEE BY : MR. R.C. MODI / DATE OF HEARING 0 4 . 03 .201 4 / DATE OF ORDER 14.03.2014 / ORDER , / PER AMIT SHUKLA , J.M. THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENUE CHALLEN GING THE IMPUGNED ORDER DATED 30 TH OCTOBER 2012 , PASSED BY THE LEARNED COMMISSIONER (APPEALS) XVIII , MUMBAI , FOR THE QUANTUM OF ASSESSMENT PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT, SHREE PAR FRAGRANCE PVT. LTD. 2 1961 (FOR SHORT 'THE ACT' ) FOR THE ASSESSMENT YEAR 2 0 09 10 . THE ON LY GROUND RAISED BY THE REVENUE READS AS UNDER: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT(A) ERRED IN ALLOWING THE DEDUCTION U/S 80IB CLAIMED BY THE ASSESSEE WITHOUT APPRECIATING THE FACTS OF THE CASE. 2 . FACTS IN BRIE F : THE ASSESSEE IS A PRIVATE LIMITED COMPANY ENGAGED IN THE BUSINESS OF MANUFACTURING OF PERFUMERY COMPOUNDS. IT HAS SET UP A UNIT IN SILVASSA. IN RESPECT OF THE PROFITS DERIVED FROM THIS UNIT, THE ASSESSEE HAS BEEN CLAIMING DEDUCTION UNDER SECTION 80IB(4 ) SINCE THE ASSESSMENT YEAR 2004 05. THE ASSESSING OFFICER OBSERVED THAT THE REVENUE HAS BEEN REJECTING THE ASSESSEES CLAIM RIGHT FROM THE ASSESSMENT YEAR 2004 05 TO 2008 09. HE EVEN NOTED THAT THE TRIBUNAL IN ASSESSEES OWN CASE HAS DECIDED THIS ISSUE IN FAVOUR OF THE ASSESSEE IN THE ASSESSMENT YEAR 2004 05, 2005 06 AND 2006 07 AND THE REVENUES APPEAL IS PENDING BEFORE THE HIGH COURT. ACCORDINGLY, HE DISALLOWED THE CLAIM OF DEDUCTION UNDER SECTION 80IB AMOUNTING TO ` 24,23,613. 3 . THE LEARNED COMMISSIONER (APPEALS), FOLLOWING THE DECISION OF THE TRIBUNAL FOR THE EARLIER YEARS, ALLOWED THE ASSESSEES CLAIM. 4 . BEFORE US, BOTH THE PARTIES AGREED THAT THIS ISSUE STANDS ALLOWED BY THE TRIBUNAL IN ASSESSEES OWN CASE RIGHT FROM THE ASSESSMENT YEAR 2004 05 TO 2007 08. 5 . AFTER CONSIDERING THE SUBMISSIONS AND ALSO THE FINDINGS OF THE ASSESSING OFFICER AND THE LEARNED COMMISSIONER (APPEALS), WE FIND THAT THIS ISSUE IS SQUARELY COVERED BY THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR SEVER YEARS IN ITA NO.5549 /MUM./2007, ASSESSMENT YEAR 2004 05, ORDER DATED 29 TH NOVEMBER 2007, THE SHREE PAR FRAGRANCE PVT. LTD. 3 TRIBUNAL HAS PASSED A VERY DETAIL ORDER WHEREIN IT HAS BEEN HELD THAT THE ASSESSEE FULL FILL THE CONDITIONS GIVEN IN SECTION 80IB INCLUDING THE CONDITION REGARDING EMPLOYMENT OF MINIM UM NUMBER OF WORKERS. THIS DECISION OF THE TRIBUNAL HAS BEEN FOLLOWED IN THE SUBSEQUENT YEARS ALSO. THUS, RESPECTFULLY FOLLOWING THE JUDICIAL PRECEDENCE, WE DO NOT FIND ANY MERIT IN THE GROUND RAISED BY THE REVENUE AND, ACCORDINGLY, THE SAME IS DISMISSED. 6 . 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED. 14 TH MARCH 2014 ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH MARCH 2014 SD/ - SANJAY ARORA ACCOUNTANT MEMB ER SD/ - AMIT SHUKLA JUDICIAL MEMBER MUMBAI, DATED : 14 TH MARCH 2014 / COPY OF THE ORDER FORWARDED TO : ( 1 ) / THE ASSESSEE ; ( 2 ) / THE REVENUE; ( 3 ) ( ) / THE CIT(A ) ; ( 4 ) / THE CIT, MUMBAI CITY CONCERNED ; ( 5 ) , , / THE DR, ITAT, MUMBAI ; ( 6 ) / GUARD FILE . / TRUE COPY / BY ORDER . / PRADEEP J. CHOWDHURY / SR. PRIVATE SECRETARY / / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI