DYNA HITECH POWER SYSTEMS LTD, MUMBAI v. ACIT 8(3), MUMBAI

ITA 2050/MUM/2011 | 2006-2007
Pronouncement Date: 25-04-2014 | Result: Partly Allowed

Appeal Details

RSA Number 205019914 RSA 2011
Assessee PAN AAACD5391A
Bench Mumbai
Appeal Number ITA 2050/MUM/2011
Duration Of Justice 3 year(s) 1 month(s) 12 day(s)
Appellant DYNA HITECH POWER SYSTEMS LTD, MUMBAI
Respondent ACIT 8(3), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 25-04-2014
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted D
Tribunal Order Date 25-04-2014
Date Of Final Hearing 12-02-2014
Next Hearing Date 12-02-2014
Assessment Year 2006-2007
Appeal Filed On 14-03-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH MUM BAI ! BEFORE SHRI SANJAY ARORA AM AND DR. S. T. M. PAVA LAN JM ' # I.T.A. NO. 2050/MUM/2011 ( / ASSESSMENT YEAR: 2006-07) DYNA HITECH POWER SYSTEMS LTD. DYNA HOUSE PLOT NO. A-57 MIDC SECTOR I ANDHERI (EAST) MUMBAI-400 093 # VS. ASST. CIT-8(3) AAYKAR BHAVAN MUMBAI $ #'%' ./PAN/GIR NO. AAACD 5391 A ( $& /APPELLANT ) : ( '($& / RESPONDENT ) $&)* / APPELLANT BY : SHRI KISHORE K. PODDAR '($&)* / RESPONDENT BY : SHRI B. P. K. PANDA + )- / DATE OF HEARING : 12.02.2014 ./0 )- / DATE OF PRONOUNCEMENT : 25.04.2014 '1# O R D E R PER SANJAY ARORA A. M.: THIS IS AN APPEAL BY THE ASSESSEE DIRECTED AGAINST THE ORDER BY THE COMMISSIONER OF INCOME TAX (APPEALS)-16 MUMBAI (CIT(A) FOR SH ORT) DATED 07.12.2010 PARTLY ALLOWING THE ASSESSEES APPEAL CONTESTING ITS ASSES SMENT U/S.143(3) OF THE INCOME TAX ACT 1961 (THE ACT HEREINAFTER) FOR THE ASSESSMEN T YEAR (A.Y.) 2006-07 VIDE ORDER DATED 14.11.2008. 2. THE APPEAL RAISES TWO ISSUES PER ITS TWO GROUNDS WHICH WE SHALL TAKE UP IN SERIATIM. THE FIRST GROUND RELATES TO AN ADDITION I N RESPECT OF UNUTILIZED MODVAT CREDIT 2 ITA NO. 2050/MUM/2011 (A.Y. 2006-07) DYNA HITECH POWER SYSTEMS LTD. VS. ASST. CIT EFFECTED IN THE SUM OF RS.1 59 649/- U/S.145A OF TH E ACT READ WITH EXPLANATION THERETO. THE SAME STOOD CONFIRMED BY THE LD. CIT(A) IN APPEA L IN-AS-MUCH AS IT WAS CONFIRMED THAT THE ADJUSTMENT OF THE UNUTILIZED MODVAT BOTH FOR THE OPENING STOCK AND PURCHASES STILL LEFT AN UNUTILIZED CREDIT FOR THE IMPUGNED SU M AND WHICH WAS THEREFORE TO BE ADDED TO THE VALUE OF THE CLOSING STOCK U/S.145A. RELIANC E FOR THE PURPOSE HAS BEEN PLACED BY THE REVENUE ON THE DECISIONS IN THE CASE OF CIT VS. MALAYALA MANORAMA CO. LTD. [2002] 253 ITR 378 (KER) AND CIT VS. MAHAVIR ALLUMINIUM LTD. [2008] 297 ITR 77 (DEL). AGGRIEVED THE ASSESSEE IS IN APPEAL. 3. WE HAVE HEARD THE PARTIES AND PERUSED THE MATER IAL ON RECORD. 3.1 THE FACTS OF THE CASE ARE LARGELY UNDISPUTED. T HIS ISSUE (I.E. THE APPLICATION OF SECTION 145A QUA THE UNUTILIZED MODVAT CREDIT) IS NO LONGER RES INTEGRA HAVING BEEN EXAMINED OVER A SERIES OF DECISIONS BY THE TRIBUNAL BESIDES THUS BY THE HIGHER COURTS OF LAW. WE MAY FOR THE SAKE OF CONVENIENCE AND CLARITY IN THE MATTER REPRODUCE THE HEAD NOTES OF A DECISION IN THE CASE OF HERCLUES PIGMENT INDUSTRY VS. ITO (IN ITA NO. 271/MUM/2012 DATED 29.05.2013 H BENCH)/[2013] 93 DTR (MUM)(TRIB) 49). AFTER EXAMINING THE MATTER AT LENGTH DULY NOTING THE DEC ISIONS BY THE HIGHER COURTS AS WELL AS THE PRINCIPLES INVOLVED IT IN SUM OPINED AS UNDE R: ACCOUNTSMETHOD OF ACCOUNTINGUNUTILIZED CENVAT CR EDIT (UCC) ASSESSEE CLAIMED TO HAVE VALUED ITS CLOSING STOCK I NCLUSIVE OF ALL TAXESIT FOLLOWS INCLUSIVE METHOD OF ACCOUNTING FOLLOWING MA NDATE OF SECTION 145A WHICH IS IN FACT OTHERWISE TAX-NEUTRAL SO THAT IT SHOULD NOT RESULT IN ANY ENHANCEMENT OR CHANGE IN INCOMEAO MADE ADDITIO N ON ACCOUNT OF OUTSTANDING BALANCE IN UNUTILISED CENVAT CREDIT ACC OUNTCIT(A) OBSERVED THAT ENTIRE UNUTILISED MODVAT CREDIT PERTAINS TO CU RRENT YEAR; OPENING BALANCE IN ACCOUNT BEING NIL DIRECTED ADJUSTMENT O F OUTSTANDING BALANCE IN ACCOUNT TO ASSESSEE'S INCOME INASMUCH AS SAME WAS O NLY EXCISE COMPONENT ON RAW MATERIAL SEMI-FINISHED GOODS AND FINISHED G OODS IN STOCKHELD SECTION 145A IS ONLY AN ACCOUNTING PRESCRIPTION ST ATUTORILY MANDATED WHICH IS IN CONSISTENCE WITH THE ACCEPTED ACCOUNTIN G PRINCIPLES OF VALUATION AT COST OR IN CASE OF FINISHED GOODS AT MARKET VA LUE WHERE IT IS LESS THAN COSTVALUATION OF STOCK CONSIDERED IN ITS PROPER PE RSPECTIVE COULD NEVER BE A SOURCE OF INCOME OR PROFITASSESSEE'S ACCOUNTS CANNOT BE SAID TO BE IN ACCORDANCE WITH SECTION 145AOUTSTANDING UNTILIZ ED CENVAT CREDIT REFLECTED AS A PART OF COST OF RAW MATERIAL AS AT Y EAR-END WAS BALANCING 3 ITA NO. 2050/MUM/2011 (A.Y. 2006-07) DYNA HITECH POWER SYSTEMS LTD. VS. ASST. CIT FIGURE AND DOES NOT REPRESENT THE EXCISE COMPONENT ON THE RAW MATERIAL OR EVEN THAT ON THE CLOSING INVENTORIES OF FINISHED AN D SEMI-FINISHED GOODS ONLY ADOPTING ALL THE FIGURES AT CORRECT VALUES WOU LD LEAD TO CORRECT PROFIT IN TERMS OF SECTION 145A AND BALANCE IN UCC A/C (F OR THE TIME BEING) CANNOT BE TAKEN AS A SURROGATE MEASURE OF EXCISE CO MPONENT IN INVENTORIES AT THAT POINT OF TIMEUCC A/C AS BEING PREPARED W AS NOT IN CONSISTENCE WITH ACCOUNTING PRINCIPLESONLY A CORRECT STATEMENT OF CURRENT ASSETS AND LIABILITIES I.E. WHICH ARE NOT ON CAPITAL ACCOUNT IN BALANCE-SHEET WOULD ENABLE REFLECTION OF CORRECT OPERATING RESULTS FOR THE RELEVANT ACCOUNTING PERIODONLY BOOKING OF PROFIT (AGAINST EXCESS RECOV ERY OF EXCISE DUTY) WOULD ENABLE AN AGREEMENT OF THE OUTSTANDING BALANC E IN UCC A/C WITH EXCISE COMPONENT IN CLOSING INVENTORIES SO THAT AC COUNTS WHETHER MAINTAINED ON GROSS OR NET BASIS REFLECT CURRENT A SSET IN RESPECT OF EXCISE PAID THEREON AT THE SAME CORRECT VALUEFURTHER IT IS ONLY THIS RECKONING 'PROFIT' ON EXCESS RECOVERY AS THE DIFFERENCE BETWE EN THE PROFIT PER THE TWO STATEMENTS PREPARED ON NET AND GROSS BASIS THAT WO ULD STATE UCC A/C AT CORRECT VALUE OF CURRENT ASSET REPRESENTED BY IT W HERE ACCOUNTS ARE MAINTAINED ON NET BASIS BRINGING PROFIT PER TWO ME THODS AT PARPROVISION BECOMES TAX-NEUTRAL ONLY WHEN DUTY IS PAID ON VALUE ADDITION ELSE NOT IN VIEW OF NON OBSTANTE PROVISION OF SECTION 43BTHAT HOWEVER CANNOT BE A GROUND FOR NOT OBSERVING THE METHOD OF ACCOUNTING THAT YIELDS CORRECT PROFITS OR OPERATING RESULTSEVEN WHERE ACCOUNTING TREATMENT PROVIDES CORRECT RESULTS PROVISION OF SECTION 43B WOULD HAV E TO BE GIVEN DUE EFFECTSAME CANNOT BE DEFEATED BY NON-BOOKING STATU TORY LIABILITY IN RESPECT OF EXCISE IN ACCOUNTSSECTIONS 43B AND 145A BOTH NON OBSTANTE PROVISIONS ARE TO BE READ IN HARMONYIN FINAL ANAL YSIS TAX NEUTRALITY OF NET METHOD IS SUBJECT TO IT BEING ESTABLISHED WITH THE NON OBSTANTE PROVISION OF SECTION 43B WHICH IN FACT OBTAINS IRR ESPECTIVE OF THE METHOD OF ACCOUNTING FOLLOWED ASSUMING A CRUCIAL SIGNIFIC ANCE WHEN LIABILITY IN RESPECT OF ALL LEVIES AS ACCRUED ARE BOOKED OR ACCO UNTED FOR. 3.2 IN VIEW OF THE AFORE-SAID ANALYSIS BY THE TRIBU NAL WHICH IN FACT REPRESENTS ITS CONSISTENT VIEW IN THE MATTER IT STANDS CLARIFIED THAT THERE IS NO PRINCIPLE IN ACCOUNTANCY WHICH WOULD SANCTION OR AUTHORIZE THE INCLUSION OF THE UNUTILIZED MODVAT CREDIT AS PART OF THE VALUE OF THE CLOSING STOCK AND THEREBY GO TO IN CREASE THE INCOME FOR THE RELEVANT YEAR. THE SAID CREDIT IS ESSENTIALLY QUA AN ACCOUNT MAINTAINED BY THE ASSESSEE FOR THE PURPO SE OF THE DEPOSIT OF DUTY WITH THE EXCISE DEPARTMENT. THE MANDATE OF LAW PER SECTION 145A WOULD STAND MET AND SATISFIED ONLY UPON SCRUPULOUSL Y FOLLOWING ITS PRESCRIPTION I.E. BY VALUING THE OPENING AND CLOSING INVENTORIES AS WELL AS THE PURCHASES AND SALES DURING THE 4 ITA NO. 2050/MUM/2011 (A.Y. 2006-07) DYNA HITECH POWER SYSTEMS LTD. VS. ASST. CIT YEAR AT INCLUSIVE OF ALL DUTIES AND LEVIES INCIDENT THEREON. WE THEREFORE ONLY CONSIDER IT FIT AND PROPER THAT THE MATTER IS LIKE WISE RESTORE D BACK TO THE FILE OF THE ASSESSING OFFICER (A.O.) TO GIVE EFFECT TO THE DIRECTION/S AFORE-STA TED WHICH WE CONFIRM AND ADOPT AFTER OF COURSE HEARING THE ASSESSEE IN THE MATTER. WE DECID E ACCORDINGLY. AS REGARDS THE DECISIONS RELIED UPON BY THE REVENUE (REFER PARA 2 OF THIS ORDER) WHICH WE HAVE PERUSED THE SAME BEING ON DIFFERENT ISSUES ALTOGETHER ARE NOT RELEVANT. 4. THE SECOND AND THE ONLY OTHER ISSUE ARISING IN T HE INSTANT APPEAL RELATES TO THE NON- ADMISSIBILITY OF THE CERTAIN INCOMES AGGREGATING T O RS.10 45 582/- IN THE COMPUTATION OF INCOME ELIGIBLE FOR DEDUCTION U/S.80-IB OF THE ACT AS UNDER: INTEREST RS.3 19 378/- OTHER INCOME RS.1 42 074/- BST REFUND RS.4 96 260/- COMMISSION RS.87 870/- THE SAME STAND EXCLUDED BY THE A.O. ON ACCOUNT OF B EING NON-BUSINESS INCOMES AND IN ANY CASE OF THE MATTER BEING NON-MANUFACTURING REC EIPTS SO THAT THE SAME WERE NOT DERIVED FROM THE ASSESSEES ELIGIBLE UNIT SO AS TO QUALIFY FOR DEDUCTION U/S.80-IB OF THE ACT. THE SAME STOOD CONFIRMED BY THE LD. CIT(A) ON THE SAME BASIS OF THE SAME REASONS RELYING ON A SERIES OF DECISIONS BY AMONG OTHERS THE APEX COURT AS IN THE CASE OF PANDIAN CHEMICALS LTD. VS. CIT [2003] 262 ITR 278 (SC); CIT VS. AUTOKAST LTD. [2001] 248 ITR 110 (SC); CIT VS. STERLING FOODS [1999] 237 ITR 579 (SC); AND TUTICORIN ALKALI CHEMICALS & FERTILIZERS VS. CIT [1997] 227 ITR 172 (SC). AGGRIEVED THE ASSESSEE I S IN APPEAL. 5. WE HAVE HEARD THE PARTIES AND PERUSED THE MATER IAL ON RECORD. 5.1 THE LAW IN THE MATTER IS WELL-SETTLED AND TOWA RD WHICH THE REVENUE HAS RELIED ON A SERIES OF DECISIONS BY THE APEX COURT WITH ITS DECISION IN THE CASE OF LIBERTY INDIA VS. CIT [2009] 317 ITR 218 (SC) WHICH IS ALSO IN THE CONTE XT OF SECTION 80-IB REITERATING THE SAME VIEW. THE ISSUE AS WE DISCERN IS WHETHER ANY OF THE SAID RECEIPTS COULD BE SAID TO BE DERIVED FROM THE BUSINESS OF THE ASSESSEES E LIGIBLE UNDERTAKING IN-AS-MUCH AS THE 5 ITA NO. 2050/MUM/2011 (A.Y. 2006-07) DYNA HITECH POWER SYSTEMS LTD. VS. ASST. CIT RELEVANT PROVISION OF SECTION 80-IB(1) EMPLOYS THE WORDS DERIVED FROM THE BUSINESS REFERRED TO IN SUB-SECTIONS (3) TO (11) OF THE SECT ION FURTHER REFERRING TO IT AS THE ELIGIBLE BUSINESS. THIS ASPECT HAS BEEN THE SUBJECT MATTER OF CONSIDERATION BY THE TRIBUNAL IN THE CASE OF TESSITURA MONTI (P.) LTD. VS. ITO [2013] 141 ITD 531(MUM.) [22 ITR (TRIB) 329]. THOUGH THE SAID DECISION IS IN CONTEXT OF S. 10B OF THE ACT THE SAME EMPLOYING THE SAME EXPRESSION I.E. PROFITS DERIVED FROM THE BUS INESS OF THE ELIGIBLE UNDERTAKING IS PARI MATERIA AND THUS RELEVANT. THE WORDS BUSINESS OF THE UN DERTAKING IT STANDS EXPLAINED ARE WIDER IN AMBIT THAN THE WORDS PROFITS OF THE U NDERTAKING AND THEREFORE ANY PROFIT WHICH IS DERIVED FROM THE BUSINESS OF THE ASSESSEE S UNDERTAKING WOULD QUALIFY TO BE THE PROFITS OF THE BUSINESS OF THE UNDERTAKING AND UPO N EXCLUDING THAT ATTRIBUTABLE TO DOMESTIC TURNOVER (OR NON-QUALIFIED EXPORTS) WOULD BE THE PROFITS DERIVED BY THE HUNDRED PER CENT. EXPORT-ORIENTED UNDERTAKING FROM EXPORTS AS CONTEMPLATED IN SECTION 10B(1) AND ON WHICH DEDUCTION IS TO BE ALLOWED. IN OTHER WORDS THE WORD DERIVED WOULD CONTROL OR GUIDE THE WORD PROFITS IN THE DEDUCTIO N PROVISION BUT THE ACTIVITY FROM WHICH THE PROFITS ARE DERIVED IS THE ECONOMIC ACTIV ITY THAT COMPRISES THE BUSINESS OF THE ELIGIBLE UNDERTAKING RATHER THAN BEING RESTRICTED STRICTLY TO THE ELIGIBLE UNDERTAKING. AS SUCH AS LONG AS A RECEIPT IS INTIMATELY AND INEXTR ICABLY CONNECTED WITH THE BUSINESS OF THE UNDERTAKING IT CANNOT BE EXCLUDED IN RECKONIN G THE ELIGIBLE PROFITS UNDER SECTION 10B(1) . THE CONTENTION THAT THE PROFITS DERIVED BY AN UNDER TAKING ARE SIMPLY THE PROFITS OF THE BUSINESS ADJUSTED IN THE RATIO OF THE EXPORT T URNOVER TO THE TOTAL TURNOVER IN VIEW OF SECTION 10B(6) OF THE ACT WAS IN FACT REPELLED BY T HE TRIBUNAL STATING THAT THAT RATHER REPRESENTS ONE OF THE THREE STEPS INVOLVED IN ARRIV ING AT THE ELIGIBLE PROFIT; THE FIRST STEP BEING TO ASCERTAIN IF THE ASSESSEES UNDERTAKING IS AN ELIGIBLE UNDERTAKING U/S.10B AND THE SECOND BEING THE DETERMINATION OF THE PROFITS AS DE RIVED BY/FROM THE ELIGIBLE UNDERTAKING WHICH REPRESENTS THE FUNDAMENTAL CONDITION FOR THE APPLICATION OF THE PROVISION OF SECTION 10B(1). THE DIFFERENT CREDITS UNDER CONSIDERATION I N THAT CASE WERE: (A) INTEREST ON MONIES HELD IN FIXED DEPOSIT WITH THE BANK FOR AVAILING OF CREDIT FACILITIES BY WAY OF LETTER OF CREDIT AND BANK GUAR ANTEE; (B) INTEREST ON FIXED DEPOSITS AND BANK ACCOUNTS O N SURPLUS FUNDS; 6 ITA NO. 2050/MUM/2011 (A.Y. 2006-07) DYNA HITECH POWER SYSTEMS LTD. VS. ASST. CIT (C) SALES TAX REFUND AND EXCISE DUTY DRAWBACK FOR AN EARLIER PERIOD BEING NOT PAYABLE BY AN EXPORT UNIT; (D) SCRAP SALE; AND (E) MISCELLANEOUS INCOME COMPRISING CANTEEN RECOVE RY DISCOUNT AND FINE FROM WORKERS CREDITED TO THE ACCOUNT HEAD OTHER INCOME BY THE ASSESSEE IN ITS BOOKS OF ACCOUNT WITH THE TRIBUNAL PROCEEDING TO DECIDE ON THE EXIG IBILITY OF EACH OF THESE RECEIPTS ON THE ANVIL OF THE RATIO AFORE-STATED. THE SAME WOULD IN OUR VIEW APPLY I N EQUAL MEASURE TO THE INSTANT CASE AS WELL. REFERENCE IN T HIS CONTEXT MAY ALSO BE MADE TO THE DECISION BY THE HONBLE JURISDICTIONAL HIGH COURT I N THE CASE OF CIT VS. RACHNA UDHYOG [2010] 230 CTR (BOM) 72 (COPY ON RECORD). 5.2 WE SHALL PROCEED RECEIPT-WISE: A) INTEREST INCOME ON BANK DEPOSIT (RS.3 19 378/-) AS EXPLAINED IN THE CASE OF TESSITURA MONTI (P.) LTD . (SUPRA) WHERE THE MONIES HELD IN DEPOSIT ACCOUNT/S FORM PART OF THE REGULAR ARRANGEMENT ADOPTED OR FOLLOWED BY THE BANK FOR EXTENDING NON-FUND BASED CREDIT FACILITIES TO ITS CONSTITUENTS THE SAME CAN ONLY BE REGARDED AS INTEGRAL TO THE ASSESSEE'S BUSINESS AND ACCORDINGLY WOULD FORM PART OF THE PROFITS OF THE BUSINESS OF THE ASSESSEE'S INDUSTRIA L UNDERTAKING. ON THE OTHER HAND IF AND TO THE EXTENT THE DEPOSIT WITH THE BANK REPRESENTS INVESTMENT OR PARKING OF THE ASSESSEES SURPLUS FUNDS (FOR THE TIME BEING) THE SAME WOULD IN FACT QUALIFY TO BE CONSIDERED AS INCOME ASSESSABLE U/S.56. NO CASE FOR DEDUCTION U/ S.80-IB ON SUCH INTEREST IS MADE OUT. WE DECIDE ACCORDINGLY. B) OTHER INCOME (RS.1 42 074/-) THE SAME AS CONTENDED IS ON ACCOUNT OF SALE OF SC RAP ARISING OUT OF THE ASSESSEES INDUSTRIAL UNDERTAKING. THE SAME AGAIN AS CLARIFIE D BY THE TRIBUNAL OVER A SERIES OF DECISIONS AS ALSO IN THE CASE OF TESSITURA MONTI (P.) LTD . (SUPRA) AND WITH REFERENCE TO THE DECISIONS BY THE HIGHER COURTS WOULD CERTAINLY QUALIFY FOR DEDUCTION U/S.80-IB. ACCORDINGLY SUBJECT TO THE VERIFICATION OF THE SAI D INCOME BEING ON ACCOUNT OF SALE OF SCRAP THE ASSESSEES CLAIM IS ALLOWED. 7 ITA NO. 2050/MUM/2011 (A.Y. 2006-07) DYNA HITECH POWER SYSTEMS LTD. VS. ASST. CIT C) BST REFUND (RS.4 96 260/-) THE SAME REPRESENTS REFUND OF SALES-TAX FROM THE SA LES TAX DEPARTMENT. THE SAME ARISING ON ACCOUNT OF A GOVERNMENT POLICY TOWARD NO N-LEVY OF TAX ON EITHER THE PURCHASES OR SALES FROM A CLASS OF UNDERTAKINGS TO WHICH THE RELEVANT SCHEME OF THE GOVT. APPLIES THE FIRST DEGREE RELATIONSHIP THEREOF WOULD NOT BE WITH THE GOODS PRODUCED BY THE SAID UNDERTAKING BUT WITH THE SAID POLICY INSTRUMENT OF THE STATE GOVERNMENT SEEKING TO PROVIDE INCENTIVE TO UNITS AND THEREBY ENCOURAGE TH E (RELEVANT) INDUSTRY. ACCORDINGLY THE SAME WOULD NOT QUALIFY FOR DEDUCTION U/S.80-IB THO UGH SHALL WITHOUT DOUBT FORM PART OF THE ASSESSEES BUSINESS INCOME EVEN AS CLARIFIED B Y THE TRIBUNAL IN TESSITURA MONTI (P.) LTD . (SUPRA) WITH REFERENCE TO THE DECISION BY THE APE X COURT IN THE CASE OF LIBERTY INDIA (SUPRA). D) COMMISSION (RS.87 870/-) THE SAME IS ADMITTEDLY EARNED FROM THE TRADING DIVI SION OF THE ASSESSEES ENTERPRISE WHICH IS STATED TO BE A PART OF THE IND USTRIAL UNDERTAKING AND DOES NOT REPRESENT ANY INDEPENDENT OR ISOLATED ACTIVITY. WE CANNOT BUT DISAGREE. THE SAME ARISES ONLY ON ACCOUNT OF SERVICES RENDERED BY THE ASSESSEE WHICH IS AN ECONOMIC ACTIVITY APART FROM AND INDEPENDENT OF THAT OF THE INDUSTRIAL UNDERTAKI NG PRODUCING THE GOODS. ACCORDINGLY THE SAME WOULD NOT BE ELIGIBLE FOR DEDUCTION U/S.80 -IB. WE DECIDE ACCORDINGLY. BEFORE PARTING WITH OUR ORDER WE MAY CLARIFY THAT IT IS CONSISTENT WITH THE ORDER BY THE TRIBUNAL IN THE CASE OF DY. CIT VS. MEDLEY PHARMACEUTICAL LTD. [2007] 109 TTJ 328 (MUM) RELIED UPON BEFORE US. 6. IN THE RESULT THE ASSESSEES APPEAL IS PARTLY A LLOWED. 20 -34 52-) '61 7 -) -89! ORDER PRONOUNCED IN THE OPEN COURT ON APRIL 25 201 4 SD/- SD/- (DR. S. T. M. PAVALAN) (SANJAY ARORA) / JUDICIAL MEMBER / ACCOUNTANT MEMBER + : MUMBAI; ; DATED : 25.04.2014 8 ITA NO. 2050/MUM/2011 (A.Y. 2006-07) DYNA HITECH POWER SYSTEMS LTD. VS. ASST. CIT # ROSHANI SR. PS !' # $%&' (!'% # COPY OF THE ORDER FORWARDED TO : 1. $& / THE APPELLANT 2. '($& / THE RESPONDENT 3. '' + <- = > / THE CIT(A) 4. '' + <- / CIT CONCERNED 5. ?@ A'-B4 ' B40 + : / DR ITAT MUMBAI 6. A 5C # GUARD FILE !' ) / BY ORDER */)+ (DY./ASSTT. REGISTRAR) + : / ITAT MUMBAI