DCIT CIR 2(2), MUMBAI v. PATEL STATIONERS P. LTD, MUMBAI

ITA 1670/MUM/2010 | 2006-2007
Pronouncement Date: 14-01-2011 | Result: Dismissed

Appeal Details

RSA Number 167019914 RSA 2010
Bench Mumbai
Appeal Number ITA 1670/MUM/2010
Duration Of Justice 10 month(s) 11 day(s)
Appellant DCIT CIR 2(2), MUMBAI
Respondent PATEL STATIONERS P. LTD, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 14-01-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 14-01-2011
Assessment Year 2006-2007
Appeal Filed On 04-03-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C : MUMBAI BEFORE SHRI D.K. AGARWAL (JM) AND SHRI B. RAMAKO TAIAH (AM) ITA NO.1670/MUM/2010 ASSESSMENT YEAR : 2006-07 DY. COMMISSIONER OF INCOME TAX CIRCLE-2(2) AAYAKAR BHAVAN ROOM NO.545 5 TH FLOOR M.K. ROAD MUMBAI-20. ..( APPELLANT ) VS. PATEL STATIONERS P. FORWARDERS LTD. 510 HIMALAYA HOUSE 79 PALTON ROAD MUMBAI-1. ..( RESPONDENT ) P.A. NO. (AAACP 2477 M) APPELLANT BY : SHR I S.K. SINGH RESPONDENT BY : MS. L ATA PARULEKAR O R D E R PER D.K. AGARWAL (JM). THIS APPEAL PREFERRED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER DATED 23.12.2009 PASSED BY THE LD. CIT(A) FOR T HE ASSESSMENT YEAR 2006-07. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE ASSESSEE COM PANY IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF LACQUER A ND PROCESSING OF PENCIL LED. THE ONLY DISPUTE IS WITH REGARD TO THE D ENIAL OF DEDUCTION U/S.80-IA/80-IB OF THE INCOME TAX ACT 1961 (THE ACT) CLAIMED BY THE ASSESSEE IN RESPECT OF SILVASSA AND UMERGAON II UNITS. THE ASSESSING OFFICER AFTER NOTICING THE FACT THAT THE TRIBUNAL IN A SSESSEE'S OWN CASE FOR THE ASSESSMENT YEAR 2001-02 IN ITA NO.3044/M/06 DAT ED ITA NO.1670/M/10 A.Y:06-07 2 5.9.2008 ASSESSMENT YEAR 2002-03 IN ITA NO.4247/M/06 D ATED 25.8.2008 AND FOR ASSESSMENT YEAR 2003-04 IN ITA NO.438 8/M/06 DATED 15.9.2008 HAS ALLOWED THE CLAIM OF THE ASSESSEE W HILE OBSERVING THAT THE DECISION OF THE ITAT HAS NOT BEEN ACCE PTED BY THE DEPARTMENT AND APPEAL U/S.260A HAS BEEN FILED BEFORE THE HONBLE HIGH COURT HOWEVER FOLLOWED THE FINDING RECORDED I N THE ASSESSMENT ORDER FOR THE EARLIER YEARS WHEREIN IT HAS BEEN HELD THAT THE ASSESSEE IS NOT ELIGIBLE FOR DEDUCTION U/S.80-IA/80-IB DENIED THE CLAIM OF DEDUCTION U/S.80-IA AND 80-IB FOR THE YEAR UNDER CONSID ERATION. ON APPEAL THE LD. CIT(A) FOLLOWING THE ORDERS OF THE L D. CIT(A) AND THE TRIBUNAL HOWEVER ALLOWED THE CLAIM OF THE ASSESSEE. 3. BEING AGGRIEVED BY THE ORDER OF THE LD. CIT(A) T HE REVENUE IS IN APPEAL BEFORE US CHALLENGING IN ALL THE GROUNDS THE D ELETION OF DISALLOWANCE OF DEDUCTION U/S.80-IA AND 80-IB OF THE A CT. 4. AT THE TIME OF HEARING THE LD. DR SUPPORTS THE OR DER OF THE ASSESSING OFFICER. 5. ON THE OTHER HAND THE LD. COUNSEL FOR THE ASSESSEE WH ILE RELYING ON THE ORDER OF THE LD. CIT(A) SUBMITS THAT THE ISSUE ST ANDS COVERED IN FAVOUR OF THE ASSESSEE BY THE ORDERS OF THE TRIBUNAL IN ASSESSEE'S OWN CASE IN ITA NO.3625/MUM/06 ORDER DATED 24.9.2008 FOR THE ASSESSMENT YEAR 2001-02 IN ITA NOS. 3192 & 3193/MUM/200 7 ORDER DATED 27.1.2009 FOR THE ASSESSMENT YEARS 2002-03 AND 200 3-04 AND IN ITA NO.2148/MUM/2008 ORDER DATED 28.5.2009 FOR T HE ASSESSMENT YEAR 2005-06. SHE ALSO PLACED ON RECORD THE COPY OF TH E SAID ORDER OF THE TRIBUNAL. ITA NO.1670/M/10 A.Y:06-07 3 6. HAVING CAREFULLY HEARD THE SUBMISSIONS OF THE RIVAL P ARTIES AND PERUSING THE MATERIAL AVAILABLE ON RECORD WE FIND MER IT IN THE PLEA OF THE LD. COUNSEL FOR THE ASSESSEE THAT THE ISSUE STANDS COVERE D AGAINST THE REVENUE AND IN FAVOUR OF THE ASSESSEE BY THE AFORESA ID ORDERS OF THE TRIBUNAL IN ASSESSEE'S OWN CASE. IN ASSESSEE'S OWN CASE IN I TA NO.4246/M/2006 FOR ASSESSMENT YEAR 1998-99 DATED 25.8. 2008 THE TRIBUNAL AFTER CONSIDERING THE VARIOUS DECISIONS HELD THA T THE LD. CIT(A) WAS JUSTIFIED IN ALLOWING THE CLAIM OF THE ASSESSEE. THE ABOVE ORDER OF THE TRIBUNAL HAS BEEN FOLLOWED BY THE TRIBUNAL IN TH E APPEALS FOR THE SUBSEQUENT ASSESSMENT YEARS AS MENTIONED ABOVE AND DISMISSED THE APPEALS FILED BY THE REVENUE. IN THE ABSENCE OF ANY D ISTINGUISHING FEATURE BROUGHT ON RECORD BY THE REVENUE WE RESPECTFUL LY FOLLOWING THE CONSISTENT VIEW OF THE TRIBUNAL HOLD THAT ON THE FACTS A ND CIRCUMSTANCES OF THE CASE THE ASSESSEE IS ENTITLED TO DEDUCTION U/S.80- IA/80-IB OF THE ACT AND ACCORDINGLY WE ARE INCLINED TO UPHOLD THE ORDER OF THE LD. CIT(A) IN ALLOWING THE CLAIM OF THE ASSESSEE. THE GROUNDS TAKEN BY THE REVENUE ARE THEREFORE REJECTED. 7. IN THE RESULT THE REVENUES APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14.1.2011. SD/- SD/- (B. RAMAKOTAIAH) ( D.K. AGARWAL ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI DATED: 14.1.2011. JV. COPY TO: THE APPELLANT THE RESPONDENT THE CIT CONCERNED MUMBAI THE CIT(A) CONCERNED MUMBAI THE DR BENCH TRUE COPY BY ORDER DY/ASSTT. REGISTRAR ITAT MUMBAI.