The DCIT, Circle-2,, JUNAGADH v. M/s. AVadh Agro Exports,, AMRELI

ITA 272/RJT/2011 | 2004-2005
Pronouncement Date: 02-12-2011 | Result: Partly Allowed

Appeal Details

RSA Number 27224914 RSA 2011
Assessee PAN AAGFA0810L
Bench Rajkot
Appeal Number ITA 272/RJT/2011
Duration Of Justice 5 month(s) 15 day(s)
Appellant The DCIT, Circle-2,, JUNAGADH
Respondent M/s. AVadh Agro Exports,, AMRELI
Appeal Type Income Tax Appeal
Pronouncement Date 02-12-2011
Appeal Filed By Department
Order Result Partly Allowed
Bench Allotted DB
Tribunal Order Date 02-12-2011
Date Of Final Hearing 01-11-2011
Next Hearing Date 01-11-2011
Assessment Year 2004-2005
Appeal Filed On 17-06-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH RAJKOT BEFORE SHRI T.K. SHARMA (JM) AND SHRI A.L. GEHLOT ( AM) I.T.A. NO.271 & 272/RJT/2011 (ASSESSMENT YEAR 2003-04 & 2004-05) THE DY.CIT CIR.2 VS M/S AVADH AGRO EXPORTS JUNAGADH 86/2 GIDC UDHYOGNAGAR AMRELI PAN : AAGFA0810L (APPELLANT) (RESPONDENT) DATE OF HEARING : 01-11-2011 DATE OF PRONOUNCEMENT : 02-12-2011 APPELLANT BY : SHRI K PRABHAKAR RESPONDENT BY: WRITTEN SUBMISSION O R D E R PER T.K. SHARMA (JM) THESE TWO APPEALS BY THE REVENUE ARE AGAINST THE O RDERS BOTH DATED 31- 03-2011 PASSED BY THE CIT(A)-XXI RAJKOT FOR THE AS SESSMENT YEARS 2003-04 AND 2004-05. 2. THE TAX EFFECT IN THESE APPEALS ARE BELOW THE TA X LIMIT PRESCRIBED IN THE CBDT CIRCULAR NO. NO.3/2011 (F.NO.279/MISC.142/2007 -ITJ) DATED 9-2-2011 FOR FILING THE APPEAL BEFORE THE TRIBUNAL; HOWEVER IT IS COVERED BY THE EXCEPTIONAL CIRCUMSTANCES EXPLAINED IN THE SAID CIRCULAR. THER EFORE WE PROCEED TO DISPOSE OF THESE APPEALS ON MERIT. 3. THE GROUNDS RAISED IN THE APPEAL FOR ASSESSMENT YEAR 2003-04 ARE AS UNDER: ITA NO.271 & 272/RJT/2011 2 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.5 13 057/- ON ACCOUNT OF DEDUCTION U /S 80HHC. 2. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN D ELETING THE ADDITION OF RS.2 34 324/- ON ACCOUNT OF DEDUCTION U /S 80IB. 4. THE GROUNDS RAISED IN THE APPEAL FOR ASSESSMENT YEAR 2004-05 ARE AS UNDER: 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.3 28 895/- ON ACCOUNT OF DEDUCTION U /S 80HHC. 2. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN D ELETING THE ADDITION OF RS.3 04 533/- ON ACCOUNT OF DEDUCTION U /S 80IB. 5. THE CONTROVERSY INVOLVED IN GROUND NO.1 FOR BOTH THE ASSESSMENT YEARS IS THAT IN THE ASSESSMENT ORDER RELYING ON THE LANGUA GE OF SUB SECTION (4)(B) OF SECTION 80HHC THE ASSESSING OFFICER REDUCED THE AM OUNT OF DEDUCTION U/S 80IB TO WORK OUT THE DEDUCTION U/S 80HHC OF THE ACT. ON APPEAL IN THE IMPUGNED ORDER THE LD.CIT(A) ACCEPTED THE CONTENTION OF THE ASSESSEE THAT DEDUCTION U/S 80HHC WITHOUT DEDUCTING CLAIM OF DEDUCTION U/S 80IB OF THE I.T. ACT 1961. THE VIEW TAKEN BY LD.CIT(A) IN THE IMPUGNED ORDER IS IN CONFORMITY WITH THE LATEST DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CA SE OF ASSOCIATED CAPSULES P LTD VS DY.CIT & ANR 332 ITR 42 (BOM). WE THEREFOR E DECLINE TO INTERFERE. 6. THE CONTROVERSY INVOLVED IN GROUND NO.2 IS WHETH ER DEPB CREDIT WOULD FORM PART OF PROFIT FOR THE PURPOSE OF COMPUTING DE DUCTION U/S 80IB OF THE ACT. THIS ISSUE IS COVERED AGAINST THE ASSESSEE BY THE J UDGMENT OF THE HONBLE APEX COURT IN THE CASE OF LIBERTY INDIA VS CIT 317 ITR 2 18 (SC) WHEREIN IT HAS BEEN HELD THAT DUTY DRAW BACK RECEIPT AND DEPB BENEFIT D ID NOT FORM PART OF NET PROFIT ITA NO.271 & 272/RJT/2011 3 FOR THE PURPOSE OF COMPUTING DEDUCTION U/S 80IB OF THE ACT. RESPECTFULLY FOLLOWING THIS JUDGMENT OF APEX COURT WE REVERSE T HE ORDER OF LD CIT(A) AND ALLOW GROUND NO.2 OF THE REVENUE. 7. IN THE RESULT THE APPEAL FILED BY THE REVENUE I S PARTLY ALLOWED. THIS ORDER HAS BEEN PRONOUNCED ON THE DATE AS MENTI ONED ABOVE. SD/- SD/- (A.L. GEHLOT) (T.K. SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER RAJKOT DT : 02 ND DECEMBER 2011 PK/- COPY TO: 1. ASSESSEE 2. REVENUE 3. THE CIT(A)-XXI RAJKOT 4. THE CIT-III RAJKOT 5. THE DR I.T.A.T. RAJKOT (TRUE COPY) BY ORDER ASSTT.REGISTRAR ITAT RAJKOT