Johnson Pump (India) Limited, Ahmedabad v. The ACIT.,(OSD)Circle-8,, Ahmedabad

ITA 1620/AHD/2012 | 2004-2005
Pronouncement Date: 07-10-2016 | Result: Allowed

Appeal Details

RSA Number 162020514 RSA 2012
Assessee PAN AAACS7234B
Bench Ahmedabad
Appeal Number ITA 1620/AHD/2012
Duration Of Justice 4 year(s) 2 month(s) 12 day(s)
Appellant Johnson Pump (India) Limited, Ahmedabad
Respondent The ACIT.,(OSD)Circle-8,, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 07-10-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 07-10-2016
Date Of Final Hearing 29-09-2016
Next Hearing Date 29-09-2016
Assessment Year 2004-2005
Appeal Filed On 26-07-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH AHMEDABAD BEFORE SHRI RAJPAL YADAV JUDICIAL MEMBER AND SHRI MANISH BORAD ACCOUNTANT MEMBER ./ ITA.NO.1620/AHD/2012 / ASSTT. YEAR: 2004-2005 JOHNSON PUMP (INDIA) LTD. (NOW KNOWN AS SPX FLOW TECHNOLOGY (INDIA) PVT.LTD. SURVEY NO.275 OPP: MURLIDHAR SOCIETY ODHAV ROAD ODHAV AHMEDABAD 382 415. PAN : AAACS 7234 B VS ACIT (OSD) CIR.8 AHMEDABAD. ! / (APPELLANT) '# ! / (RESPONDENT) ASSESSEE BY : SHRI N.B. SHAH AR REVENUE BY : SHRI JAMES KURIAN SR.DR / DATE OF HEARING : 29/09/2016 / DATE OF PRONOUNCEMENT: 07/10/2016 $%/ O R D E R PER RAJPAL YADAV JUDICIAL MEMBER ASSESSEE IS IN APPEAL AGAINST THE ORDER OF THE LD.C IT(A)-4 MUMBAI DATED 18.5.2012 FOR THE ASTT.YEAR 2004-05. 2. GROUNDS OF APPEAL TAKEN BY THE ASSESSEE ARE NOT IN CONSONANCE WITH THE RULE 8 OF THE INCOME TAX (APPELLATE TRIBUNAL) RULES 1963 - THEY ARE DESCRIPTIVE AND ARGUMENTATIVE IN NATURE. IN BRIEF ISSUE INVOLVED IN THIS APPEAL IS WHETHER WHILE COMPUTING DEDUCTION ADMISSIBLE UND ER SECTION 80HHC OF THE INCOME TAX ACT SALES-TAX AND EXCISE DUTY ARE REQUI RED TO BE EXCLUDED FROM THE TOTAL TURNOVER. ITA NO.1620/AHD/2012 2 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HA S FILED ITS RETURN OF INCOME ON 30.10.2004 DECLARING TOTAL INCOME AT RS.1 13 65 560/-. THE ASSESSEE HAS CLAIMED DEDUCTION UNDER SECTION 80HHC. WHILE COMPU TING SUCH DEDUCTION IT HAS EXCLUDED EXCISE DUTY AND SALES TAX AGGREGATING TO RS.16 13 55 627/- FROM THE TOTAL TURNOVER. THELD.AO DID NOT APPROVE THIS TYPE OF CALCULATION BY FOLLOWING JUDGMENT OF HONBLE SUPREME COURT IN THE CASE OF M/S.CHOWRINGHEE SALES BUREAU PVT. LTD. 87 ITR 542. THE ASSESSEE CONTENDED BEFORE THE AO THAT THIS ISSUE IS SQUARELY COVERED BY THE DECISION OF HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. SU DARSHAN CHEMICAL INDUSTRIES LTD. 245 ITR 769 (BOM). THE LD.AO DID NOT ACCEPT THE CONTENTION OF THE ASSESSEE ON THE GROUND THAT THIS DECISION WA S NOT ACCEPTED BY THE REVENUE AND IT WAS CHALLENGED BEFORE THE HONBLE S UPREME COURT. 4. IT IS BROUGHT TO OUR NOTICE THAT ISSUE IN DISPUT E IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HONB LE SUPREME COURT IN THE CASE OF CIT VS. LAKSHMI MACHINE WORKS 290 ITR 667. HONBLE SUPREME COURT HAS UPHELD VIEW TAKEN BY THE HONBLE BOMBAY H IGH COURT IN THE CASE OF SUDARSHAN CHEMICAL INDUSTRIES LTD. (SUPRA). IT HAS BEEN HELD THAT SALES-TAX AND EXCISE DUTY WOULD NOT FORM PART OF THE TOTAL TU RNOVER WHILE COMPUTING THE DEDUCTION UNDER SECTION 80HHC. THEREFORE WE ALLOW THE APPEAL OF THE ASSESSEE AND DIRECT THE AO TO COMPUTE THE DEDUCTION AFTER EXCLUDING THE SALES TAX AND EXCISE DUTY FROM THE TOTAL TURNOVER. 5. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE COURT ON 7 TH OCTOBER 2016 AT AHMEDABAD. SD/- SD/- (MANISH BORAD) ACCOUNTANTN MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 07/10/2016