ACIT, Bhiwani v. Jai Bharat Gum & Chemicals Limited,, Bhiwani

ITA 4254/DEL/2009 | 2007-2008
Pronouncement Date: 05-01-2010 | Result: Allowed

Appeal Details

RSA Number 425420114 RSA 2009
Assessee PAN AAACJ2998M
Bench Delhi
Appeal Number ITA 4254/DEL/2009
Duration Of Justice 2 month(s)
Appellant ACIT, Bhiwani
Respondent Jai Bharat Gum & Chemicals Limited,, Bhiwani
Appeal Type Income Tax Appeal
Pronouncement Date 05-01-2010
Appeal Filed By Department
Order Result Allowed
Bench Allotted D
Tribunal Order Date 05-01-2010
Date Of Final Hearing 05-01-2010
Next Hearing Date 05-01-2010
Assessment Year 2007-2008
Appeal Filed On 04-11-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D NEW DELHI BEFORE SHRI I.P. BANSAL JUDICIAL MEMBER & SHRI A.K. GARODIA ACCOUNTANT MEMBER ITA NO. 4254 /DEL/2009 ASSESSMENT YEAR: 2007-08 ADDL. COMMISSIONER OF INCOME TAX VS. JAI BHARAT GU M & CHEMICALS LTD. BHIWANI. SIWANI. PAN NO. AAACJ2998M (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI B.K. GUPTA SR. DR RESPONDENT BY : SH. K. SANTANAM ADV. ORDER PER I.P. BANSAL J.M. THIS IS AN APPEAL FILED BY THE REVENUE. IT IS DI RECTED AGAINST THE ORDER OF CIT(A) DATED 28 TH AUGUST 2009 FOR A.Y. 2007-08. GROUNDS OF APPEAL READ AS UNDER: - 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE THE LD. CIT(A) WAS RIGHT IN LAW IN DELETING THE DISALLOWANC E OF RS. 25 59 119/- MADE ON ACCOUNT OF DEDUCTION CLAIMED U/ S 80IB ON DEPB BENEFITS. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) WAS RIGHT IN LAW IN ALLOWING DEDUCTION U/S 8 0IB ON DEPB WHICH DO NOT CONSTITUTE RECEIPT DERIVED FROM ELIGIB LE INDUSTRIAL UNDERTAKING. 3. THE APPELLANT CRAVES LEAVE TO ADD OR AMEND THE G ROUNDS OF APPEAL BEFORE THE APPEAL IS HEARD OR DISPOSED OFF. ITA NO. 4254/DEL/09 2 2. WHILE CONSIDERING THE DEDUCTION ALLOWABLE TO ASS ESSEE U/S 80IB AO REDUCED DEPB BENEFITS ON THE GROUNDS THAT THE SAME CANNOT FORM PART OF ELIGIBLE PROFIT. LD. CIT(A) HAS ALLOWED THE CLAIM OF THE ASSESSEE AGAINST WHICH THE REVENUE IS AGGRIEVED HENCE IN APPEAL. 3. DURING THE COURSE OF HEARING IT WAS SUBMITTED BY LD. DR THAT THIS ISSUE IS COVERED IN FAVOUR OF REVENUE BY THE LATEST DECISION OF HONBLE SUPREME COURT IN THE CASE OF LIBERTY INDIA VS. DCIT 317 ITR 218 (SC) WHEREIN IT HAS BEEN HELD THAT DUTY DRAWBACK RECEIPT S/DUTY ENTITLEMENT PASS BOOK BENEFITS ARE ON ACCOUNT OF STATUTORY PROVISION S IN CUSTOMS ACT/SCHEME(S) FRAME BY THE GOVERNMENT; THEREFORE P ROFITS SO DERIVED DO NOT FORM PART OF THE NET PROFIT OF ELIGIBLE INDUSTR IAL UNDERTAKING FOR THE PURPOSE OF SECTIONS 80IB 80I AND 80IA. THUS HE S UBMITTED THAT THIS APPEAL OF THE REVENUE SHOULD BE ALLOWED. 4. ON THE OTHER HAND LD. AR OF THE ASSESSEE HAS SU BMITTED WRITTEN SUBMISSIONS ACCORDING TO WHICH THOUGH IN AFOREMEN TIONED CASE HONBLE SUPREME COURT HAS DECIDED THE AFOREMENTIONED ISSUE IN FAVOUR OF REVENUE BUT HONBLE SUPREME COURT WAS NOT INFORMED ABOUT TH E DECISION OF HONBLE HIGH COURT AND ACCORDING TO INFORMATION AVAILABLE T HE AFOREMENTIONED DECISION PRESENTLY IS SUBJECT MATTER OF REVIEW AS P ER INFORMATION GIVEN BY THE ASSESSEE. THEREFORE IT HAS BEEN MENTIONED IN THE WRITTEN SUBMISSION THAT THIS ISSUE MAY BE KEPT PENDING OR THE APPEAL M AY BE DISPOSED OFF SUBJECT TO DECISION OF HONBLE SUPREME COURT ON THE REVIEW PETITION. ITA NO. 4254/DEL/09 3 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS IN THE LIGHT OF MATERIAL PLACED BEFORE US. THOUGH CONTENTION HAS B EEN RAISED THAT A REVIEW PETITION HAS BEEN FILED BEFORE HONBLE SUPREME COUR T BUT NO PAPER HAS BEEN SUBMITTED TO SUBSTANTIATE THE SAME. HOWEVER PRESENTLY THE ISSUE IS ADMITTEDLY COVERED AGAINST ASSESSEE BY THE AFOREMEN TIONED DECISION OF HONBLE SUPREME COURT. THEREFORE RESPECTFULLY FOLL OWING THE AFOREMENTIONED DECISION OF HONBLE SUPREME COURT W E ALLOW THE APPEAL FILED BY THE REVENUE AND WE HOLD THAT DEPB BENEFITS DO NOT FORM PART OF NET PROFIT OF ELIGIBLE INDUSTRIAL UNDERTAKING FOR THE P URPOSE OF DEDUCTION U/S 80IB. THEREFORE THE APPEAL FILED BY THE REVENUE IS ALLOW ED. 6. IN THE RESULT THE APPEAL IS ALLOWED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 05.01.201 0 (A.K. GARODIA) (I.P. BANSAL ) ACCOUNTANT MEMBER JU DICIAL MEMBER DATED: *KAVITA CHOPRA COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT TRUE COPY BY ORDER DEPUTY REGISTRAR ITA NO. 4254/DEL/09 4