ITO 14(1)-4, MUMBAI V. D.N.H. SPINNERS, MUMBAI

ITA 8379/MUM/2010

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4103 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 29-07-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 02-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KISHAN VYAS

Judgement Text

, , , , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES D, MUMBAI .. , ! ' # , $ ', % BEFORE SHRI R.S.SYAL, AM AND SHRI VIVEK VARMA, JM ITA NO.8379/MUM/2010 : ASST.YEAR 2007-2008 THE INCOME TAX OFFICER WARD 14(1)-4 MUMBAI. M/S.D.N.H.SPINNERS 601, 602 & 603 CHINCHOLI BUNDER ROAD, BUSINESS CLASIC, MALAD (WEST) MUMBAI PAN : AADFD3001F. ( &' / // / APPELLANT) ) ) ) ) / VS. ( *+&'/ RESPONDENT) &' , ,, , - - - - / APPELLANT BY : SHRI KISHAN VYAS *+&' , - , - , - , - / RESPONDENT BY : SHRI RAKESH JOSHI ) , .! / / / / DATE OF HEARING : 29.07.2013 /01 , .! / DATE OF PRONOUNCEMENT : 31.07.2013 ' 2 ' 2 ' 2 ' 2 / / / / O R D E R PER R.S.SYAL (AM) : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 13.09.2010 IN RELATION TO THE ASSESSMENT YEAR 2007-2008. 2. THE ONLY ISSUE RAISED THROUGH VARIOUS GROUNDS IS AGAINST THE GRANTING OF DEDUCTION U/S 80-IB IN RESPECT OF INTER EST INCOME OF ` 20,58,131, WHICH WAS RECEIVED FROM CUSTOMERS. BRIEF LY STATED THE FACTS OF THE CASE ARE THAT THE ASSESSEE RECEIVED A SUM OF ` 20.58 LAKH ITA NO.8379/MUM/2010. M/S.DNH SPINNERS. 2 AS INTEREST FROM CUSTOMERS ON ACCOUNT OF DELAYED PA YMENT OF SALE PROCEEDS AND CLAIMED DEDUCTION U/S 80-IB ON SUCH AM OUNT. THE ASSESSING OFFICER REFUSED THE DEDUCTION BY RELYING ON CERTAIN JUDGMENTS INCLUDING CIT V. STERLING FOODS [237 ITR 579], LIBERTY INDIA V. CIT [317 ITR 218 (SC)], CIT V. DR.V.P.GOPI NATHAN [248 ITR 449]. THE LEARNED CIT(A) OVERTURNED THE IMPUGNED ORDER ON THIS ISSUE. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD, WE FIND THAT SIMILAR I SSUE CAME UP BEFORE THE TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2004-2005. VIDE ITS ORDER DATED 09.07.2010 IN ITA NO.5773/MUM/ 2007, THE TRIBUNAL HAS HELD THAT THE ASSESSEE IS ENTITLED TO DEDUCTION U/S 80-IB ON INTEREST INCOME RESULTING FROM CUSTOMERS FOR DEL AYED PAYMENT. IT IS FURTHER NOTED THAT THE HONBLE JURISDICTIONAL HI GH COURT IN CIT V. VIDHYA CORPORATION [(2010) 324 ITR 221 (BOM.)] HAS GRANTED SIMILAR DEDUCTION U/S 80-IB IN RESPECT OF INTEREST ON DELAY ED PAYMENT OF THE PRICE OF THE GOODS SOLD. IN VIEW OF THE BINDING PRE CEDENT AVAILABLE FROM THE HONBLE JURISDICTIONAL HIGH COURT AND TRIB UNAL ORDER PASSED IN ASSESSEES FAVOUR, WE ARE OF THE CONSIDERED OPIN ION THAT THE LEARNED CIT(A) HAS TAKEN AN INESCAPABLE VIEW. THE SAME IS, THEREFORE, UPHELD. 5. 3 .4 5 !36 , 6. 78 IN THE RESULT, THE APPEAL IS DISMISSED. ITA NO.8379/MUM/2010. M/S.DNH SPINNERS. 3 ORDER PRONOUNCED ON THIS 31 ST DAY OF JULY, 2013. ' 2 , /01 9')4 0 , : SD/- SD/- (VIVEK VARMA) (R.S.SYAL) $ ' $ ' $ ' $ ' / JUDICIAL MEMBER ! ' ! ' ! ' ! ' / ACCOUNTANT MEMBER MUMBAI ; 9') DATED : 31 ST JULY, 2013. DEVDAS* ' 2 , *$.;# < #1. ' 2 , *$.;# < #1. ' 2 , *$.;# < #1. ' 2 , *$.;# < #1./ COPY OF THE ORDER FORWARDED TO : 1. &' / THE APPELLANT 2. *+&' / THE RESPONDENT. 3. = () / THE CIT, THANE. 4. = / CIT(A) 25, MUMBAI. 5. #@: *$.$) , , / DR, ITAT, MUMBAI 6. : A / GUARD FILE. ' 2) ' 2) ' 2) ' 2) / BY ORDER, +#. *$. //TRUE COPY// B B B B/ // /7 6 7 6 7 6 7 6 ( DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI