ANUSHAKTI CHEMICALS AND DRUGS LTD., MUMBAI V. ITO RG 10(3)(1), MUMBAI

ITA 9240/MUM/2010

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 79292 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 15-07-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 31-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business income

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A B ENCH, MUMBAI . , !' , #$ %&'( , #) *+ # ' BEFORE SHRI D.MANMOHAN, VICE PRESIDENT AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ./ I.T.A. NO.9240/MUM/2010 ( , , , , / ASSESSMENT YEAR :2007-08 M/S. ANUSHAKTI CHEMICALS & DRUGS LTD., (FORMERLY KNOWN AS AARTI HEALTHCARE LTD.), 2 ND FLOOR, UDYOG KSHETRA, MULUND GOREGAON LINK ROAD, MUMBAI-400 080 / VS. THE ITO, RANGE-10(3)(1), MUMBAI +- #) ./ ./ ./ PAN/GIR NO. : AAACA 3517H ( -0 / APPELLANT ) .. ( 12-0 / RESPONDENT ) -0 3 # / APPELLANT BY: SHRI GOVIND JAVERI 12-0 4 3 # / RESPONDENT BY: SHRI MAURYA PRATAP 4 5) / DATE OF HEARING :15.07.2014 6, 4 5) / DATE OF PRONOUNCEMENT :15.07.2014 *#7 / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST T HE ORDER OF THE LD. CIT(A)-22, MUMBAI DT.29.10.2010 PERTAINING TO A.Y. 2007-08. 2. THE GRIEVANCES OF THE ASSESSEE READ AS UNDER: ITA NO. 9240/M/2010 2 1. TREATMENT OF INCOME FROM MANUFACTURING SERVICES AS INCOME FROM OTHER SOURCES AMOUNTING TO RS. 1,74,33,189/-. 2. TREATMENT OF LEASE RENTAL AS INCOME FROM OTHER SOURCES- RS. 3,60,00,000/- 3. TREATMENT OF OTHER INCOME AMOUNTING TO RS. 10,12,937/- AS INCOME FROM OTHER SOURCES. 4. DISALLOWANCE OF DEDUCTION U/S. 35(1)(IV) OF RS. 15,31,784/- 3. AT THE VERY OUTSET, THE LD. COUNSEL FOR THE ASSE SSEE STATED THAT THE ISSUES INVOLVED IN THE PRESENT APPEAL ARE SQUARELY COVERED BY THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSME NT YEAR 2006-07. 4. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY CONCE DED TO THIS. 5. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE AUTH ORITIES BELOW. WE HAVE ALSO THE BENEFIT OF THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2006-07 IN ITA NO. 9039/MUM/2010. WE FIND THAT THE LD. CIT(A) WHILE DECIDING THE APPEAL HAS FOLLOWED THE F INDINGS GIVEN IN A.Y. 2006-07. 5.1. A PERUSAL OF THE ORDER OF THE TRIBUNAL FOR A.Y . 2006-07 SHOWS THAT GROUND NO. 5 OF THAT APPEAL IS GROUND NO. 1 OF THE PRESENT APPEAL. GROUND NO. 6 OF THAT APPEAL IS GROUND NO. 2 OF THE PRESENT APPEAL AND GROUND NO. 4 OF THAT APPEAL IS GROUND NO. 4 OF THE PRESENT APPEAL. GRIEVANCES RAISED VIDE GROUND NO. 3 OF THE PRESENT APPEAL HAS NOT BEEN DISCUSSED AT ALL BY THE AO. WE FIND THAT ALL THE G ROUNDS IN THE PRESENT APPEAL ARE IN A WAY INTER-LINKED CONSEQUENT TO THE TREATMENT GIVEN TO THE RECEIPT OF MANUFACTURING SERVICES INCOME AS INCOME FROM OTHER SOURCES AND NOT A BUSINESS INCOME. WE FIND THAT IN TRIBUNA L IN A.Y. 2006-07 AT ITA NO. 9240/M/2010 3 PARA-7 HAS SET ASIDE THE ISSUE TO THE FILE OF THE A O FOR EXAMINATION OF THE FACTS AND CONTENTIONS AFRESH AND TO DECIDE ACCORDIN GLY. AS NO DISTINGUISHING FACTS HAVE BEEN BROUGHT BEFORE US, R ESPECTFULLY FOLLOWING THE FINDINGS OF THE CO ORDINATE BENCH IN ITA NO. 90 39/M/2010(SUPRA), WE SET ASIDE THE ISSUE TO THE FILE OF THE AO. THE AO IS DIRECTED TO DECIDE THE ISSUE AFRESH IN THE LIGHT OF THE FINDINGS GIVEN AS PER THE DIRECTIONS OF THE TRIBUNAL FOR A.Y. 2006-07. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON 15 TH JULY, 2014. SD/- SD/- (D.MANMOHAN ) (N.K. BILLAIYA) !' /VICE PRESIDENT #) *+ / ACCOUNTANT MEMBER MUMBAI; 8* DATED : 15.07.2014 . . ./ RJ , SR. PS *#7 *#7 *#7 *#7 4 44 4 15% 15% 15% 15% 9#%,5 9#%,5 9#%,5 9#%,5 / COPY OF THE ORDER FORWARDED TO : 1. -0 / THE APPELLANT 2. 12-0 / THE RESPONDENT. 3. : ( ) / THE CIT(A)- 4. : / CIT 5. %;< 15 , , / DR, ITAT, MUMBAI 6. < = / GUARD FILE. *#7 *#7 *#7 *#7 / BY ORDER, 2%5 15 //TRUE COPY// / . . . . (DY./ASSTT. REGISTRAR)