SHALIMAR PACKAGING P. LTD ( NOW MERGED WITH TIME TECHNOPLAST LTD, MUMBAI v. DCIT RG 8(3), MUMBAI

ITA 3432/MUM/2009 | 2005-2006
Pronouncement Date: 30-04-2010 | Result: Dismissed

Appeal Details

RSA Number 343219914 RSA 2009
Assessee PAN AADCS9560K
Bench Mumbai
Appeal Number ITA 3432/MUM/2009
Duration Of Justice 11 month(s) 4 day(s)
Appellant SHALIMAR PACKAGING P. LTD ( NOW MERGED WITH TIME TECHNOPLAST LTD, MUMBAI
Respondent DCIT RG 8(3), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 30-04-2010
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted E
Tribunal Order Date 30-04-2010
Assessment Year 2005-2006
Appeal Filed On 26-05-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH MUMBAI. BEFORE SHRI S.V.MEHROTRA AM & SMT ASHA VIJAYRAGHA VAN JM I.T.A. NO. 3432 /MUM/2009 ASSESSMENT YEAR: 2005-06 SHALIMAR PACKAGING P.LTD. V. THE DCIT RANGE 8(3 ) (NOW MERGED WITH TIME TCHNOPLAST LTD.) MUMBAI. 102 TODI COMPLEX 35 SAKI VIHAR ROAD ANDHERI(E) MUMBAI. PA NO.AADCS 9560 K (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI RAKESH JOSHI REVENUE BY : SHRI MAYANK PRIYADARSHI O R D E R PER S.V.MEHROTRA AM THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 21.4.2009 OF LD CIT (A)-XXVIII MUMBAI TREATING THE INTEREST ON FDR OF RS.4 07 902/- AS INCOME FROM OTHER SOURCES INSTEAD OF BUSINESS INCOME FOR THE ASSESSMENT YEAR 2006-07. 2. FACTS IN BRIEF ARE THAT THE ASSESSEE IN THE REL EVANT ASSESSMENT YEAR WAS ENGAGED IN THE MANUFACTURING OF PLASTIC ARTIFICIAL TURF AND LAWN & TRADING IN GOODS. IT HAD FILED ITS RETURN OF INCOME DECLARING TOTAL INCOME AT RS.40 90 132/- INTER ALIA CLAIMING DEDUCTION U/S. 80IB. THE AO NOTICED THAT THE ASSESSEE HAD DE BITED INTEREST EXPENSES OF RS.23 13 506/- AFTER NETTING IT OFF WITH INTEREST I NCOME OF RS.4 07 902/- ON FDRS. HE OBSERVED THAT INCOME OF RS.4 07 902/- WAS ASSESSABL E AS INCOME FROM OTHER SOURCES. HE FURTHER OBSERVED THAT THIS INTEREST INCOME WAS NOT DERIVED FROM MANUFACTURING ACTIVITY ALSO AND THEREFORE NOT ELIGIBLE FOR DEDUCTION U/S . 80IB. LD CIT (A) REJECTED THIS GROUND OF APPEAL FOLLOWING THE DECISION OF THE HONBLE SUP REME COURT IN THE CASE OF PANDIAN CHEMICALS LTD V. CIT 262 ITR 278 (SC). 2 3. AT THE TIME OF HEARING LD COUNSEL FOR THE ASSES SEE FILED BEFORE US A COPY OF TRIBUNALS ORDER DATED 5 TH JUNE 2008 IN ITA NO.6360/M/2005 FOR THE ASSESSMEN T YEAR 2002-03 IN ITS OWN CASE WHEREIN THE TRIBUNAL HAD ALLOWED THE ASSESSES CLAIM ON THIS COUNT. HE THEREFORE SUBMITTED THAT THE ASSESSEE S CLAIM BE ALLOWED. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE S IDES. WE FIND THAT NOW THIS ISSUE IS COVERED AGAINST THE ASSESSEE BY THE DECISI ON OF THE HONBLE SUPREME COURT IN THE CASE OF LIBERTY INDIA 317 ITR 218 (SC) WHEREIN I T WAS HELD THAT SECTION 80-IB PROVIDES FOR ALLOWING OF DEDUCTION IN RESPECT OF PROFITS AND GAINS DERIVED FROM THE ELIGIBLE BUSINESS. THE CONNOTATION OF THE WORDS DERIVED FRO M IS NARROWER AS COMPARED TO THAT OF THE WORDS ATTRIBUTABLE TO. BY USING THE EXPRESSI ON DERIVED FROM PARLIAMENT INTENDED TO COVER SOURCES NOT BEYOND THE FIRST DEGREE. IN THIS CASE THE SOURCE OF INCOME IS FIXED DEPOSIT AND NOT INDUSTRIAL UNDERTAKING. THEREFO RE FOLLOWING THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF LIBERTY INDIA (SUPRA) WE UPHOLD THE ORDER OF LD CIT(A) AND REJECT THE GROUND TAKEN BY THE ASSESSEE. 5. IN THE RESULT APPEAL FILED BY THE ASSESSEE STAN DS DISMISSED. PRONOUNCED ON 30 TH APRIL 2010 SD/- (ASHA VIJAYRAGHAVAN) (JUDICIAL MEMBER) SD/- (S.V. MEHROTRA) (ACCOUNTANTMEMBER) MUMBAI DATED 30 TH APRIL 2010 PARIDA COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. COMMISSIONER OF INCOME TAX (APPEALS)- MUMBAI 4. COMMISSIONER OF INCOME TAX CITY- MUMBAI 5. DEPARTMENTAL REPRESENTATIVE BENCH E MUMBAI //TRUE COPY// BY ORDER ASSTT. REGISTRAR ITAT MUMBAI 3 DATE INITIALS 1. DRAFT DICTATED ON 21.4.2010 PS 2. DRAFT PLACED BEFORE AUTHOR 21.4.2010 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER AM/JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/J M 5. APPROVED DRAFT COMES TO THE SR. PS PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER 4