DCIT 8(2), MUMBAI v. PRINCE SWR SYSTEMS P. LTD, MUMBAI

ITA 3581/MUM/2009 | 2006-2007
Pronouncement Date: 09-03-2010 | Result: Dismissed

Appeal Details

RSA Number 358119914 RSA 2009
Assessee PAN AAACP6281H
Bench Mumbai
Appeal Number ITA 3581/MUM/2009
Duration Of Justice 9 month(s) 7 day(s)
Appellant DCIT 8(2), MUMBAI
Respondent PRINCE SWR SYSTEMS P. LTD, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 09-03-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 09-03-2010
Assessment Year 2006-2007
Appeal Filed On 02-06-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES C MUMBAI BEFORE SHRI R V EASWAR SENIOR VICE PRESIDENT AND SHRI P M JAGTAP ACCOUNTANT MEMBER I T A NO: 3581/MUM/2009 (ASSESSMENT YEAR: 2006-07) DEPUTY COMMISSIONER OF INCOME TAX 8(2) APPELLANT MUMBAI VS M/S PRINCE SWR SYSTEMS PVT. LTD. MUMBAI RESPONDE NT (PAN: AAACP6281H) APPELLANT BY: MR NAVEEN GUPTA RESPONDENT BY: MS MRUGAKSHI K JOSHI O R D E R R V EASWAR SENIOR VICE PRESIDENT: THE ONLY GROUND TAKEN BY THE DEPARTMENT IN THIS AP PEAL IS THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW THE CIT(A) WAS NOT JUSTIFIED IN TREATING UNITS I AND II AS SEPARATE INDUSTRIAL UNDERTAKINGS ELIGIBLE FOR DEDUCTION UNDER SECTION 8 0-IB OF THE INCOME TAX ACT 1961. IT IS FURTHER STATED IN THE GROUND THAT THE CIT(A) DID NOT APPRECIATE THAT BOTH THE UNITS WERE PART OF A SINGL E UNIT WHICH WAS EXPANDED OVER A PERIOD OF TIME. 2. AT THE TIME OF HEARING THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF TH E ASSESSEE BY THE ORDERS OF THE TRIBUNAL FOR THE ASSESSMENT YEARS 200 3-04 TO 2005-06 AND COPIES OF THESE ORDERS WERE ALSO FILED. THE LE ARNED DEPARTMENTAL REPRESENTATIVE WAS ALSO GIVEN COPIES OF THE AFORESA ID ORDERS FOR HIS PERUSAL AND SUBMISSION. ON GOING THROUGH THE AFORE SAID ORDERS WE FIND THAT THE MAIN ORDER IS THE ONE PASSED ON 25 TH MARCH 2009 IN ITA 2 NOS: 3351 AND 3411/MUM/2007 FOR THE ASSESSMENT YEAR 2003-04. IN THIS ORDER THE ASSESSEES CASE WAS THAT THE FACTS W ERE IDENTICAL WITH THE CASE OF ITS SISTER CONCERN BY NAME M/S PRINCE P LASTICS INTERNATIONAL PRIVATE LIMITED IN WHICH CASE THE TRIBUNAL BY ORDE R DATED 30 TH MARCH 2006 IN IT(SS)A NO: 222/MUM/2004 HAD HELD WHILE DEA LING WITH A SIMILAR CONTROVERSY THAT ALL THE UNITS WERE NEWLY E STABLISHED INDEPENDENT AND SEPARATE INDUSTRIAL UNDERTAKINGS. THE TRIBUNAL IN ITS ORDER IN THE ASSESSEES CASE (SUPRA) FOUND THE CONT ENTION TO BE CORRECT AND THEREFORE UPHELD THE ASSESSEES CLAIM THAT UN ITS I AND II WERE ALSO TO BE SIMILARLY TREATED AS NEWLY ESTABLISHED INDEPENDENT AND SEPARATE INDUSTRIAL UNDERTAKINGS. IT IS SEEN FROM THE AFORESAID ORDER OF THE TRIBUNAL IN THE ASSESSEES OWN CASE THAT EVEN T HE CIT(A) HAS PROCEEDED ON THE BASIS THAT THE FACTS OF THE ASSESS EES CASE AND THE FACTS OF THE SISTER CONCERN WERE IDENTICAL AND HAS FOLLOWED THE TRIBUNALS ORDER IN THE CASE OF THE SISTER CONCERN NAMELY M/S PRINCE PLASTICS INTERNATIONAL PRIVATE LIMITED. 3. THE ORDER OF THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2003-04 HAS BEEN FOLLOWED BY THE TR IBUNAL IN THE ASSESSMENT YEAR 2004-05 IN ITA NO: 5228/MUM/2007 O RDER DATED 9 TH JULY 2009. FOR THE ASSESSMENT YEAR 2005-06 THE SA ME VIEW HAS BEEN TAKEN BY THE TRIBUNAL IN ITS ORDER DATED 28 TH MAY 2009 IN ITA NO: 2185/MUM/2008. IN THIS ORDER THE FACTS OF THE ASSE SSEES CASE HAVE BEEN NARRATED IN SOME DETAIL IN PARAGRAPH 3. 4. A PERUSAL OF ALL THE THREE ORDERS OF THE TRIBUNA L SHOWS THAT THE FACTS OF THE ASSESSEES CASE HAVE BEEN FOUND TO BE SIMILAR TO THE FACTS 3 OF ITS SISTER CONCERN BY NAME M/S PRINCE PLASTICS I NTERNATIONAL PRIVATE LIMITED IN WHOSE CASE THE TRIBUNAL HAS PASSED THE LEADING ORDER WHICH ORDER HAS BEEN FOLLOWED BY THE TRIBUNAL IN TH E ASSESSEES OWN CASE FOR THE ASSESSMENT YEARS 2003-04 TO 2005-06. THE FACTS FOR THE YEAR UNDER APPEAL ALSO BEING THE SAME RESPECTFULLY FOLLOWING THE AFORESAID ORDERS OF THE TRIBUNAL WE CONFIRM THE DE CISION OF THE CIT(A) AND DISMISS THE APPEAL FILED BY THE REVENUE WITH NO ORDER AS TO COSTS. ORDER PRONOUNCED ON MARCH 2010. (P M JAGTAP) (R V EASWAR) ACCOUNTANT MEMBER SENIOR VICE PRESI DENT MUMBAI DATED MARCH 2010 SALDANHA COPY TO: 1. M/S PRINCE SWR SYSTEMS PVT. LTD. PRINCE ARCADE C-10 CENTRAL ROAD MAROL MIDC ANDHERI (EAST) MUMBAI 400 093 2. DCIT 8(2) 3. CIT-VIII 4. CIT(A)-VIII 5. DR C BENCH TRUE COPY BY ORDER ASSTT. REGISTRAR ITAT MUMBAI DATE INITIALS 1. DRAFT DICTATED ON 08.03.10 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 08.03.10 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER VP 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM 5. APPROVED DRAFT COMES TO THE SR. PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. FILE SENT TO THE BENCH CLERK SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER