M/s. Intas Exports, Ahmedabad V. The Dy.CIT.,Cent.Circle-2(1), Ahmedabad

ITSSA 756/AHD/2010

• Counselvise Citation: [2013] 121 COUNSELVISE.COM (IT) 8605 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 20 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 11-01-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 26-12-2012
• Assessment Year: 2002-2003
• Appeal Filed On: 21-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D S KALYAN
• Assessee Lawyers: URVASHI SHODHAN ARS; S N SAPORKAR
• Section: 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD B BENCH BEFORE: SHRI D.K. TYAGI, JUDICIAL MEMBER AND SHRI T.R. MEENA, ACCOUNTANT MEMBER I.T.(SS)A. NO.756 TO 758/AHD/2010 A.Y. 2002-03 TO 04-05 M/S INTAS EXPORTS, 230, CHINUBHAI CENTRE ASHRAM ROAD, AHMEDABAD PAN-AAAFI4923J APPELLANT VS. THE D.C.I.T., CENTRAL CIRCLE-2(1) AHMEDABAD RESPONDENT WITH I.T.A. NO.2362/AHD/2012 A.Y. 2000-01 M/S INTAS EXPORTS, 230, CHINUBHAI CENTRE ASHRAM ROAD, AHMEDABAD PAN-AAAFI4923J APPELLANT VS. THE A.C.I.T., CIRCLE-10 AHMEDABAD RESPONDENT DEPARTMENT BY : SHRI D.S. KALYAN, CIT- D.R. ASSESSEE BY : SHRI S.N. SAPORKAR & SMT. URVASHI SHODHAN, A.RS. DATE OF HEARING : 26.12.2012 DATE OF PRONOUNCEMENT : 11.01.2013 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER ALL THESE APPEALS ARE AGAINST THE ORDER OF LD. CIT (A), AHMEDABAD DATED 19.08.2010 AND 31.08.2012. 2. SINCE ALL THE APPEALS BELONG TO THE SAME ASSESSE E, THEY WERE HEARD TOGETHER, FOR THE SAKE OF CONVENIENCE THEY ARE BEIN G DISPOSED OF BY PASSING THIS CONSOLIDATED ORDER. I.T.(SS)A. NO.756 TO 758/AHD/2010 A.Y. 2002-03 TO 04-05 WITH I.T.A. NO.2362/AHD/2012 A.Y. 2000-01 2 I.T.A. NO.2362/AHD/2012 3. AT THE TIME OF HEARING ONLY GROUND NO.2 WAS PRES SED WHICH READS AS UNDER:- LD. CIT(A) ERRED IN LAW AND ON FACTS IN DISMISSING THE CLAIM OF THE APPELLANT SIMPLY FOLLOWING DECISION OF EARLIER YEAR S WITHOUT APPRECIATING THE RATIO OF THE JUDGMENT IN TOPMAN EX PORTS VS. CIT IN 343 ITR 42 (SC) THAT ONLY 90% OF PROFITS AND NOT TH E ENTIRE SALE PROCEEDS OF DEPB LICENSE FALLING WITHIN PROVISIONS OF SEC.28(IIID) HAS TO BE REDUCED FROM THE PROFITS OF BUSINESS WHILE COMPU TING DEDUCTION U/S 80HHC OF THE ACT. LD. CIT(A) OUGHT TO HAVE ACCEPTE D WORKING SUBMITTED BY THE APPELLANT FOR GRANTING DEDUCTION A S HELD BY THE APEX COURT. 4. AT THE TIME OF HEARING BOTH THE PARTIES AGREED T HAT THE ISSUE IS COVERED BY THE DECISION OF HONBLE APEX COURT RENDERED IN T HE CASE OF ACG ASSOCIATED CAPSULES PVT. LTD. VS. CIT REPORTED IN 343 ITR 89 AND THEREFORE, IT REQUIRE TO BE SENT TO THE FILE OF THE A.O. FOR FRESH ADJUDI CATION IN THE LIGHT OF DECISION OF HONBLE APEX COURT RENDERED IN THE CASE OF ACG ASSOCIATED CAPSULES PVT. LTD. (SUPRA). FOR DOING THE SAME THE MATTER IS RESTORED BACK TO THE FILE OF THE A.O. THIS GROUND OF THE ASSESSEE IS ALLOWED FOR ST ATISTICAL PURPOSE. I.T.(SS)A. NO.756 TO 758/AHD/2010 5. IN ALL THESE APPEALS COMMON GROUNDS HAVE BEEN TA KEN BY THE ASSESSEE AND AT THE TIME OF HEARING ONLY GROUND NO.5 WAS PRE SSED WHICH READS AS UNDER:- WITHOUT PREJUDICE, ON THE FACTS AND IN THE CIRCUMS TANCES OF THE CASE, LD. CIT(A) SHOULD HAVE NOT UPHELD THE ADJUSTMENTS M ADE BY THE ASSESSING OFFICER IN REGARD TO THE ASSESSEES CLAIM S FOR DEDUCTION U/S 80HHC. 6. THIS GROUND HAS TWO FACETS: (I) DEDUCTION U/S 80 HHC OF DEPB LICENSE, AND (II) DEDUCTION U/S 80HHC ON THE GROSS INTEREST INCO ME. I.T.(SS)A. NO.756 TO 758/AHD/2010 A.Y. 2002-03 TO 04-05 WITH I.T.A. NO.2362/AHD/2012 A.Y. 2000-01 3 7. AT THE TIME OF HEARING, BOTH THE PARTIES AGREED THAT BOTH THE ISSUES I.E. (I) DEDUCTION U/S 80HHC OF THE DEPB LICENSE, AND ( II) DEDUCTION U/S 80HHC ON THE DEPB HAS TO BE DECIDED IN THE LIGHT OF THE DECI SION OF HONBLE APEX COURT RENDERED IN THE CASE OF ACG ASSOCIATED CAPSULES PVT. LTD. (SUPRA). SO, FOR THIS PURPOSE, BOTH THE ISSUES ARE RESTORED BACK TO THE FILE OF THE A.O. FOR FRESH ADJUDICATION. THIS GROUND OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSE. 8. IN THE COMBINED RESULT, ALL THE APPEALS ARE ALLO WED FOR STATISTICAL PURPOSE. SD/- SD/- (T.R. MEENA) (D.K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER TRUE COPY N.K. CHAUDHARY, SR. P.S. COPY OF THE ORDER FORWARDED TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT (APPEALS) 5. THE DR, AHMEDABAD 6. THE GUARD FILE BY ORDER AR,ITAT,AHMEDABAD