RAJDHANI CRAFTS, Jaipur V. ACIT, Jaipur

ITA 768/JPR/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5530 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 08-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJINDER SINGH JCIT DR DHK
• Keywords: Business income
• Section: 10B

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 768/JP/2013 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 M/S. RAJDHANI CRAFTS 54-55, SHIV VIHAR COLONY, OPP. ROAD NO.5, VKI AREA , JAIPUR CUKE VS. THE ACIT CIRCLE- 4 JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AACCK 0420 F VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI SATISH GUPTA, CA JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJINDER SINGH , JCIT- DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 14/12/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 22 /01/2016 VKNS'K@ ORDER PER R.P. TOLANI, JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE LD. CIT(A)-II, JAIPUR DATED 20-08-2013 FOR THE ASSESSME NT YEAR 2008-09 WHEREIN THE SOLITARY GROUND RAISED BY THE ASSESSEE IS AS UNDER:- ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW ALSO, LD LOWER AUTHORITIES GROSSLY ERRED IN NOT ALLOWING THE DEDUCTION ON INTEREST AND BROKERAGE (DISCOUNT O N FREIGHT PAYMENT) AMOUNTING TO RS. 4,03,124/- ITA NO. 768/JP/2013 M/S. RAJDHANI CRAFTS VS. ACIT CIRCLE- 4, JAIPUR . 2 2.1 BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S EXPORTER OF WOODEN FURNITURE & HANDICRAFTS AND IS ELIGIBLE FOR DEDUCTI ON U/S 10B OF THE ACT. DURING THE COURSE OF ITS BUSINESS, ASSESSEE PURCHAS ED SOME FDRS AS A NECESSARY REQUIREMENT FOR OBTAINING THE CC LIMIT FR OM BANK AND EARNED INTEREST AMOUNTING TO RS. 2,30,078/-, NSC AMOUNTING TO RS. 1,039/- WAS PLEDGED WITH SALES TAX DEPARTMENT FOR REGISTRATION PURPOSES AND BROKERAGE REBATE WAS RECEIVED AGAINST FREIGHT PAYME NTS MADE DURING THE COURSE OF BUSINESS. THE AO REJECTED THE ASSESSEES CLAIM OF ITS BEING BUSINESS INCOME AND HELD THESE AMOUNTS TO BE INCOME FROM OTHER SOURCES AND EXCLUDED FROM ELIGIBLE INCOME U/S 10B OF THE AC T. THIS WAS CONFIRMED BY THE LD. CIT(A). 2.2 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. THE HON'BLE RAJASTHAN HIGH COU RT IN THE CASE OF CIT VS. HYCRON INDIA LTD. , 308 ITR 251 HAS HELD T HAT IF THE INCOME IS EARNED BY THE ASSESSEE ON THE DEPOSITS WHICH ARE IN TRINSICALLY LINKED TO ASSESSEES BUSINESS THEN THE SAME WILL BE ELIGIBLE AS BUSINESS INCOME U/S 10B OF THE ACT. SIMILAR VIEW HAS BEEN TAKEN BY THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS. ALFA LAVAL (INDIA) LTD . 294 ITR 70. IN MY CONSIDERED VIEW, THE INTEREST HAS BEEN EARNED AND F REIGHT REBATE HAS BEEN ITA NO. 768/JP/2013 M/S. RAJDHANI CRAFTS VS. ACIT CIRCLE- 4, JAIPUR . 3 OBTAINED ON THE ACTIVITIES WHICH ARE INTRINSICALLY LINKED TO THE BUSINESS OF THE ASSESSEE. IN VIEW THEREOF AND RESPECTFULLY THE ABOVE JUDICIAL PRECEDENTS, THE INCOME IS ELIGIBLE U/S 10B OF THE A CT. THUS THE APPEAL OF THE ASSESSEE IS ALLOWED. 3.0 IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED IN THE OPEN COURT ON 22 /0 1/2016. SD/- VKJ-IH-RKSYKUH (R.P.TOLANI) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 22 /01/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. RAJDHANI CRAFTS, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE ACIT, CIRCLE- 4, JAIPUR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 768/JP/2013) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR