ACIT, UDAIPUR v. M/s. Sun Polytex Pvt. Ltd.,, UDAIPUR

ITA 342/JODH/2009 | 2006-2007
Pronouncement Date: 22-03-2011 | Result: Allowed

Appeal Details

RSA Number 34223314 RSA 2009
Bench Jodhpur
Appeal Number ITA 342/JODH/2009
Duration Of Justice 1 year(s) 9 month(s) 10 day(s)
Appellant ACIT, UDAIPUR
Respondent M/s. Sun Polytex Pvt. Ltd.,, UDAIPUR
Appeal Type Income Tax Appeal
Pronouncement Date 22-03-2011
Appeal Filed By Department
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 22-03-2011
Date Of Final Hearing 09-02-2011
Next Hearing Date 09-02-2011
Assessment Year 2006-2007
Appeal Filed On 12-06-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH JODHPUR. BEFORE SHRI S.V. MEHROTRA ACCOUNTANT MEMBER AND SHRI V. DURGA RAO JUDICIAL MEMBER ITA NO.342/JU/2009 (ASSESSMENT YEAR : 2006-07) ASST. COMMISSIONER OF INCOME TAX CIRCLE 2 UDAIPUR. VS. M/S. SUN POLYTEX PVT. LTD. G-272-273 BHAMSHAH IND. AREA KALADWAS GIRWA UDAIPUR. PAN NO.AAECS9347 K (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AMIT NIGAM. RESPONDENT BY : SHRI .AMIT KOTHARI PER V. DURGA RAO : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAI NST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) U DAIPUR DT.25.03.2009. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APP EAL : ON THE FACTS AND IN THE PRESENT CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED IN DELETING THE DISALLOWAN CE OF DEDUCTION U/S.80IB AMOUNTING TO RS.5 37 820 AND OTHER INCOME OF RS.9 15 156. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS ENGAGED IN MANUFACTURING PP/HDPE TAPE/FABRIC/SACKS ETC. THE ASSESSEE HAS CLAIMED DEDUCTION U/S. 80IB OF THE I.T. ACT DFRC INCOME OF RS.5 37 820/- AND OTHER INCOME OF RS.9 15 156/-. THE ASSESSING OFFICER HAS DENIED THE CLAIM OF THE ASSESSEE ON THE GROUND THAT THE RECEIPTS ARE NOT DE RIVED FROM BUSINESS OF INDUSTRIAL UNDERTAKING AND NOT ALLOWED DEDUCTION. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LEARNED CIT(A). THE LEA RNED CIT(A) BY FOLLOWING ITA NO.342/JU/09 M/S SUN POLYTEX PVT. LTD. 2 THE DECISION TAKEN IN A.Y. 2004-05 DELETED THE ADDI TION MADE BY THE ASSESSING OFFICER AND ALLOWED THE APPEAL OF THE ASS ESSEE. 3. ON BEING AGGRIEVED THE REVENUE FILED APPEAL BEFO RE THE TRIBUNAL AGAINST THE ORDER OF THE LEARNED CIT(A). 4. AT THE TIME OF HEARING IT WAS BROUGHT TO OUR NO TICE THAT SIMILAR ISSUE HAD COME UP FOR CONSIDERATION BEFORE THE ITAT FOR T HE A.YS 2004-05 & 2005- 06 IN ASSESSEES OWN CASE IN ITA NOS.234 & 235/JU/ 2008 AND THE ITAT UPHELD THE ORDER OF THE ASSESSING OFFICER VIDE ITS ORDER DT.2.3.2010 BY FOLLOWING THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF LIBERTY INDIA VS. CIT (2009) 317 ITR 218 (SC). THE RELEVANT PORT ION OF THE ORDER OF TRIBUNAL IS EXTRACTED HEREUNDER : WE HAVE HEARD THE PARTIES AND HAVE PERUSED THE EN TIRE MATERIAL AVAILABLE ON RECORD. AS REGARDS DFRC INCOME WE FI ND THAT IT IS AN EXPORT INCENTIVE AND CANNOT FORM PART OF PROFITS AND GAINS DERIVED FROM INDUSTRIAL UNDERTAKING. THE ASSESSEE THEREFORE IS NOT ENTITLED TO GET DEDUCTION ON IT U/S.80IB OF THE ACT. OUR THIS VIEW STANDS FORTIFIED BY THE DECISION OF HONBLE SU PREME COURT RENDERED IN THE CASE OF LIBERTY INDIA VS. CIT (2009 ) 317 ITR 218 (SC). SETTING ASIDE THE ORDER OF LEARNED CIT(A) W E THEREFORE RESTORE THE DECISION REACHED BY ASSESSING OFFICER O N THIS COUNT. 5. RESPECTFULLY FOLLOWING THE DECISION OF THE CO-OR DINATE BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE A.Y. 2004-0 5 AND 2005-06 THIS GROUND OF APPEAL RAISED BY THE REVENUE IS ALLOWED. ACCORDINGLY WE SET ASIDE ITA NO.342/JU/09 M/S SUN POLYTEX PVT. LTD. 3 THE ORDER OF THE CIT(A) AND RESTORE THE DECISION OF ASSESSING OFFICER ON THIS GROUND. 6. IN THE RESULT THE APPEAL OF REVENUE IS ALLOWED. PRONOUNCED ON 22 ND MARCH 2011. SD/- SD/- (S.V. MEHROTRA) (V. DURGA RAO) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI DT. 22 ND MARCH 2011. *GPR COPIES OF THE ORDER FORWARDED TO : (1) THE APPELLANT (2) THE RESPONDENT (3) CIT(A) (4) CIT CONCERNED. (4) DR (5) GUARD FILE TRUE COPY BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES ITA NO.342/JU/09 M/S SUN POLYTEX PVT. LTD. 4 DATE INI TIALS DRAFT DICTATED ON 15/03/2011 DRAFT PLACED BEFORE AUTHOR DRAFT PROPOSED & PLACED BEFORE SECOND MEMBER DRAFT DISCUSSED & APPROVED BY SECOND MEMBER APPROVED DRAFT COMES TO SR.PS/PS KEPT FOR PRONOUNCEMENT ON FILE SENT TO BENCH CLERK DATE ON WHICH FILE GOES TO THE HEAD CLERK DATE OF DISPATCH OF ORDER.