ACIT 2(1) CITY-2, MUMBAI v. HARDKIN PAINTS P.LTD, MUMBAI

ITA 1875/MUM/2010 | 2006-2007
Pronouncement Date: 15-07-2011 | Result: Dismissed

Appeal Details

RSA Number 187519914 RSA 2010
Assessee PAN AAACH1168B
Bench Mumbai
Appeal Number ITA 1875/MUM/2010
Duration Of Justice 1 year(s) 4 month(s) 5 day(s)
Appellant ACIT 2(1) CITY-2, MUMBAI
Respondent HARDKIN PAINTS P.LTD, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 15-07-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted H
Tribunal Order Date 15-07-2011
Date Of Final Hearing 04-07-2011
Next Hearing Date 04-07-2011
Assessment Year 2006-2007
Appeal Filed On 10-03-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH: MUMBAI BEFORE SHRI P.M. JAGTAP ACCOUNTANT MEMBER AND SHRI R.S. PADVEKAR JUDICIAL MEMBER ITA NO.1875/MUM/2010 (ASSESSMENT YEAR: 2006-07) ACIT -2(1) AAYAKAR BHAVAN R. NO.561 5 TH FLOOR M.K. ROAD MUMBAI -400 020 ....... APPELLANT VS M/S. HARDIK PAINTS PVT. LTD. 510 HIMALAYA HOUSE 79 PALTON ROAD MUMBAI -400 001 ..... RESPONDENT PAN: AAACH 1168 B APPELLANT BY: SHRI A.G. NAYAK RESPONDENT BY: MISS POONAM SOMAIYA O R D E R PER R.S. PADVEKAR JM IN THIS APPEAL THE REVENUE HAS CHALLENGED THE IMPUG NED ORDER OF THE LD. CIT (A)-4 MUMBAI DATED 29.12.2009 FOR THE A.Y. 2006-07. THE REVENUE HAS TAKEN THE FOLLOWING EFFECTIVE GROUN D:- 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW CIT (A) ERRED IN HOLDING THAT THE ASSESSEE IS E NTITLED TO DEDUCTION U/S.80IA OF THE IT ACT 1961 OVERLOOKING THE FINDINGS BY THE ASSESSING OFFICER THAT THE ASSESSEE IS NOT AN INDUSTRIAL UNDERTAKING ENGAGED IN MANUFACTURE OR PRODUCTION OF ANY ARTICLE OR THINGS. 2. WE HAVE HEARD THE PARTIES. THE LD. COUNSEL SUBM ITS THAT THE ISSUE OF THE ALLOWABILITY OF THE DEDUCTION U/S.80IA HAS ALREADY BEEN DECIDED IN FAVOUR OF THE ASSESSEE BY THE TRIBUNAL I N THE A.YS. 2004-05 ITA 1875/MUM/2010 M/S. HARDIK PAINTS PVT. LTD. 2 AND 2005-06. THE LD. COUNSEL FILED COPY OF THE TRI BUNAL ORDER FOR THE A.Y. 2005-06 BEING ITA NO.1431/M/2005 DATED 20.6.20 09 WHICH IS PLACED ON RECORD. WE HAVE ALSO HEARD THE LD. D.R. 3. THE ASSESSEE-COMPANY IS ONE OF THE COMPANIES IN THE APSARA GROUP OF COMPANIES. THE SAID GROUP IS MANUFACTURIN G THE STATIONERY ITEMS UNDER THE SHIP BRAND OF APSARA AND NATRAJ . THE ASSESSEE HAS CLAIMED THE DEDUCTION U/S.80IA IN RESPECT OF SI LVASSA UNIT. THE DEDUCTION CLAIMED BY THE ASSESSEE WAS REJECTED BY T HE A.O. MAINLY ON THE REASON THAT THE ASSESSEE WAS NOT CARRYING ON AN Y FULL MANUFACTURING ACTIVITY BUT PART OF PROCESSING OR AS SEMBLING OF THE ARTICLES OR PRODUCT ARE DONE. THE A.O. ALSO NOTED THAT THE ASSESSEE- COMPANY IS FORMED BY SPLITTING THE OTHER COMPANY AS SOME OF THE MACHINERY WAS SHIFTED FROM ANOTHER COMPANY. THE AS SESSEE CARRIED THE ISSUE BEFORE THE LD. CIT (A) AND LD. CIT (A) FO LLOWING THE ORDER OF THE TRIBUNAL IN THE ASSESSEES OWN CASE ALLOWED THE DEDUCTION. NOW THE REVENUE IS IN APPEAL BEFORE US. 4. WE HAVE PERUSED THE ORDER OF THE TRIBUNAL FOR TH E A.Y. 2005-06. WE FIND THAT THIS ISSUE IS CONSISTENTLY DECIDED IN FAVOUR OF THE ASSESSEE FORM THE A.Y. 2002-03. THERE IS NO CHANGE IN THE FACTS IN THIS YEAR HENCE WE DO NOT SEE ANY REASON TO TAKE ANY DIFFERENT VIEW THEN TAKEN IN THE PRECEDING YEAR WE FIND NO REASON TO INTERFERE WITH THE ORDER OF THE LD. CIT (A). WE ACCORDINGLY CONFI RM THE SAME. 5. IN THE RESULT REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 1 5TH JULY 2011. SD/- SD/- ( P.M. JAGTAP ) ACCOUNTANT MEMBER ( R.S. PADVEKAR ) JUDICIAL MEMBER MUMBAI DATE: 15TH JULY 2011 ITA 1875/MUM/2010 M/S. HARDIK PAINTS PVT. LTD. 3 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A)4 MUMBAI. 4) THE CIT-2 MUMBAI. 5) THE D.R. H BENCH MUMBAI. BY ORDER / / TRUE COPY / / ASSTT. REGISTRAR I.T.A.T. MUMBAI *CHAVAN ITA 1875/MUM/2010 M/S. HARDIK PAINTS PVT. LTD. 4 SR.N. EPISODE OF AN ORDER DATE INITIALS CONCERNED 1 DRAFT DICTATED ON 05.07.2011 SR.PS 2 DRAFT PLACED BEFORE AUTHOR 06.07.2011 SR.PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 FILE SENT TO THE BENCH CLERK SR.PS/PS 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER