Sagar Drugs & Pharmaceuticals Ltd., Ahmedabad V. The ACIT.,Circle-8, Ahmedabad

MA 149/AHD/2012

• Counselvise Citation: [2012] 123 COUNSELVISE.COM (IT) 9593 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 14-12-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2002-2003
• Appeal Filed On: 30-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y P VERMA
• Section: 80HHC

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD , . .!'#$, % & BEFORE SHRI MUKUL KR.SHRAWAT, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER MA NO.149/AHD/2012 ( ./ ARISING OUT OF I.T.A. NO.4042/AHD/2008) ( ( ) ( ) ( ) ( ) / / / / ASSESSMENT YEAR : 2002-03) SAGAR DRUGS & PHARMACEUTICALS LTD. SAGAR NR.SAHAJANAND COLLEGE AMBAWADI,AHMEDABAD ( ( ( ( / VS. THE ACIT INCOME TAX CIRCLE-8 AHMEDABAD * % ./+, ./ PAN/GIR NO. : AADCS 9311 E ( *- / // / APPLICANT ) .. ( ./*- / RESPONDENT ) *- 0 / APPLICANT BY : MS.URVASHI SHODHAN, A.R. ./*- 1 0 / RESPONDENT BY : SHRI Y.P.VERMA, SR.D.R. (2 1 3% / / / / DATE OF HEARING : 07/12/2012 4') 1 3% / DATE OF PRONOUNCEMENT : 14/12/12 5 / O R D E R PER SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER : THIS MISCELLANEOUS PETITION HAS BEEN FILED ON 30/ 07/2012 ARISING FROM THE ORDER OF THE TRIBUNAL AS REFERRED HEREINAB OVE IN THE NOMENCLATURE DATED 26/11/2010. THE PETITIONER HAS STATED THAT THE TRIBUNAL HAS FOLLOWED THE THEN AVAILABLE PRECEDENT OF THE HON'BLE BOMBAY HIGH COURT PRONOUNCED IN THE CASE OF KAPATAR U COLOUR & CHEMICALS LTD. VS. CIT REPORTED AT 238 ITR 451 (MUM .) AND THUS MA NO.149AHD/2012 ( OUT OF ITA NO.4042/ AHD/2008) SAGAR DRUGS & PHARMACEUTICALS LTD. VS. ASST.CIT ASST.YEAR 2002-03 - 2 - DISMISSED THE GROUND IN THAT RECORD IN RESPECT OF D EPB CLAIM FOR THE PURPOSE OF COMPUTATION OF 80HHC DEDUCTION. THE PET ITIONER HAS STATED THAT NOW THE HON'BLE SUPREME COURT HAS REVERSED THA T VIEW IN A LATEST DECISION OF TOPMAN EXPORTS REPORTED AT 342 ITR 49 ( SC), THEREFORE, THE SAID ORDER OF THE TRIBUNAL IS RECTIFIABLE AS HELD I N THE CASE OF SAURASHTRA KUTCH STOCK EXCHANGE REPORTED AT 305 ITR 227 (SC). 2. WITH THIS BRIEF BACKGROUND, WE HAVE HEARD BOTH T HE SIDES. THERE IS NO DISPUTE ABOUT THE AVAILABILITY OF A LATEST ORDER OF HON'BLE APEX COURT PRONOUNCED IN THE CASE OF TOPMAN EXPORTS (342/49)[S C], WHEREIN A VIEW HAS BEEN EXPRESSED IN FAVOUR OF THE ASSESSEE. WE H AVE ALSO BEEN INFORMED THAT ON IDENTICAL SITUATION, ITAT C BENC H AHMEDABAD IN A MISCELLANEOUS PETITION OF JAY CHEMICALS INDUSTRIES LTD. VS. DCIT BEARING MA NO.50/AHD/2012 [IN ITA NO.4237/AHD/2007 A.Y. 2 004-05] ORDER DATED 31/08/2012 HAS ALLOWED SUCH PETITION IN THE F OLLOWING MANNER:- 4. RESPECTFULLY FOLLOWING THIS JUDGEMENT OF HON'B LE GUJARAT HIGH COURT RENDERED IN THE CASE OF SUHRID GIEGY LTD. (SU PRA) AND ALSO THE JUDGEMENT OF HON'BLE APEX COURT RENDERED IN THE CASE OF SAURASHTRA KUTCH STOCK EXCHANGE (SUPRA), WE HOLD TH AT THERE IS APPARENT MISTAKE IN IMPUGNED TRIBUNAL ORDER AS THE CLAIM OF THE ASSESSEE REGARDING DEDUCTION U/S.80HHC IN RESPECT O F DEPB ENTITLEMENT/DEPB INCOME WAS DECIDED AGAINST THE ASS ESSEE FOR THE WHOLE AMOUNT BUT AS PER THE JUDGMENT OF HON'BLE APE X COURT RENDERED IN THE CASE OF TOPMAN EXPORTS (SUPRA), ONL Y PROFIT ON SALE OF DEPB SHOULD BE CONSIDERED FOR THE PURPOSE O F EXCLUSION FORM BUSINESS PROFIT FOR COMPUTING DEDUCTION ALLOWA BLE TO THE ASSESSEE U/S.80HHC AND FOR THE COMPUTATION OF PROFI T ON SALE OF DEPB, FACE VALUE OF DEPB IS TO BE CONSIDERED AS COS TS OF DEPB. WE, THEREFORE, RECTIFY THIS APPARENT MISTAKE IN THE IMPUGNED MA NO.149AHD/2012 ( OUT OF ITA NO.4042/ AHD/2008) SAGAR DRUGS & PHARMACEUTICALS LTD. VS. ASST.CIT ASST.YEAR 2002-03 - 3 - TRIBUNAL ORDER AND HOLD THAT THIS ISSUE SHOULD GO B ACK TO THE FILE OF THE A.O. FOR A FRESH DECISION AS PER THIS JUDGEMENT OF HON'BLE APEX COURT RENDERED IN THE CASE OF TOPMAN EXPORTS (SUPRA ). 3. IN THE LIKE MANNER, WE HEREBY HOLD THAT THE ISSU E IS NOW REQUIRED TO BE DECIDED BY THE ASSESSING OFFICER IN THE LIGHT OF THE DECISION OF THE HON'BLE APEX COURT. THEREFORE, THE GROUND IN QUEST ION IS SET ASIDE FOR RE-ADJUDICATION AS PER LAW BY THE ASSESSING OFFICER . 4. IN THE RESULT, THIS MISCELLANEOUS APPLICATION ST ANDS ALLOWED IN THE TERMS INDICATED HEREINABOVE. SD/- SD/- ( . .!'#$ ) ( ) % ( A.K. GARODIA ) ( M UKUL KR. SHRAWAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 14/ 12 /2012 63..(, .(../ T.C. NAIR, SR. PS 5 1 .7 8 7) 5 1 .7 8 7) 5 1 .7 8 7) 5 1 .7 8 7)/ COPY OF THE ORDER FORWARDED TO : 1. *- / THE APPELLANT 2. ./*- / THE RESPONDENT. 3. 9 / CONCERNED CIT 4. 9() / THE CIT(A)-XIV, AHMEDABAD 5. 7 >> >/ // / + + + + ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD