DCIT 8(3), MUMBAI v. UNISOUND P. LTD, MUMBAI

ITA 4265/MUM/2013 | 2007-2008
Pronouncement Date: 26-11-2014 | Result: Dismissed

Appeal Details

RSA Number 426519914 RSA 2013
Assessee PAN AAACU1670P
Bench Mumbai
Appeal Number ITA 4265/MUM/2013
Duration Of Justice 1 year(s) 5 month(s) 28 day(s)
Appellant DCIT 8(3), MUMBAI
Respondent UNISOUND P. LTD, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 26-11-2014
Appeal Filed By Department
Order Result Dismissed
Bench Allotted F
Tribunal Order Date 26-11-2014
Date Of Final Hearing 26-11-2014
Next Hearing Date 26-11-2014
Assessment Year 2007-2008
Appeal Filed On 28-05-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNALF BENCH MUMB AI BEFORE SHRI JOGINDER SINGH JM AND SHRI SANJAY ARORA AM ITA NOS.4265/MUM/2013 ASSESSMENT YEARS-2007-08 DEPUTY COMMISSIONER OF INCOME-TAX-8(3) ROOM NO.217 AAYAKAR BHAVAN M.K.MARG MUMBAI-400020 / VS. M/S UNISOUND P. LTD UNIT NO.17-A SDF-I SEEPZ ANDHERI (E) MUMBAI-400069 ./ PAN :AAACU1670P ( / REVENUE ) .. ( / RESPONDENT ) / REVENUE BY: SHRI PAWAN KUMAR BEERLA / RESPONDENT BY : SHRI RAHUL R.SARDA ! '# $% / DATE OF HEARING 26/11/2014 &'( $% / DATE OF PRONOUNCEMENT : 26/11/2014 * / O R D E R PER JOGINDER SINGH JM: THE REVENUE IS AGGRIEVED BY THE IMPUGNED ORDER DATE D 21/03/2013 OF THE LD. FIRST APPELLATE AUTHORITY MU MBAI. THE ONLY GROUND RAISED IS THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN HOLDING THAT THE ASSESSEE IS NOT LIABLE TO PAY MAT IN VIEW OF SECTION 115JB(6) OF THE ACT AS THE ASSESSEE 2 M/S UNISOUND PVT. LTD. UNIT IS LOCATED IN SEEPZ(SEZ) WITHOUT APPRECIATING THAT THE ASSESSEE FAILED TO FURNISH ANY EVIDENCE TO SHOW THA T ITS UNDERTAKING IS ELIGIBLE FOR DEDUCTION U/S 10AA AND HENCE ELIGIBLE FOR EXCLUSION U/S115JB(6) OF THE ACT. 2. AT THE TIME OF HEARING THE LD. DR SHRI PAWAN KUMAR BEERLA ADVANCED HIS ARGUMENTS WHICH ARE IDENTICAL T O THE GROUND RAISED BY DEFENDING THE ASSESSMENT ORDER. O N THE OTHER HAND THE LD. COUNSEL FOR THE ASSESSEE SHREE RAHUL R. SHARDA DEFENDED THE CONCLUSION DRAWN BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) BY ASSERTING T HAT THE ASSESSEE UNIT WAS DECLARED AS SPECIAL ECONOMIC ZONE AND THUS ENTITLED TO EXEMPTION FROM PAYMENT OF MINIMUM ALTER NATE TAX (MAT) ON THE BOOK PROFITS IN RESPECT OF INCOME ACCR UED OR ARISING ON OR AFTER 1 ST APRIL 2005. 2.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND P ERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACTS IN BR IEF ARE THAT THE ASSESSEE UNIT DECLARED NIL INCOME IN ITS RETURN FILED ON 31/10/2007 WHICH WAS PROCESSED U/S 143(1) OF THE IN COME- TAX ACT 1961 (HEREINAFTER THE ACT) ACCEPTING THE R ETURNED INCOME. SINCE THE CASE WAS SELECTED FOR SCRUTINY ASSESSMENT THEREAFTER ORDER WAS PASSED U/S 143(3) OF THE ACT ON 07/05/2009 ASSESSING THE TOTAL INCOME AT NIL AFTER SETTING OFF BROUGHT FORWARD LOSSES AMOUNTING TO RS.54 46 982/-. THE CASE OF THE ASSESSEE WAS REOPENED THEREAFTER ON TH E PLEA THAT AS PER SECTION 115JB OF THE ACT THE ASSESSEE WAS L IABLE TO PAY MINIMUM 10% OF THE TAX WORKED OUT ON NORMAL BOOK PR OFIT. 3 M/S UNISOUND PVT. LTD. AS PER THE ASSESSING OFFICER IN VIEW OF SECTION 11 5JB(2)(III) THE BOOK PROFIT WAS TO BE REDUCED BY THE AMOUNT OF LOSS BROUGHT FORWARD/UNABSORBED DEPRECIATION WHICHEVER IS LESS. HOWEVER THE ASSESSEE BEFORE THE LD. COMMISSIONER O F INCOME TAX (APPEALS) VIDE LETTER DATED 03/07/2012 EXPLAINE D THAT THE CONDITIONS ENSHRINED IN SECTION 115JB(6) OF THE ACT WERE COMPLIED WITH AS THE ASSESSEE UNIT IS LOCATED IN SE EPZ WHICH IS DECLARED AS SEZ. IT WAS FURTHER CLAIMED THAT TH E ENTIRE INCOME WAS DERIVED FROM MANUFACTURING OF ELECTRON ICS GOODS BY THE ASSESSEE UNIT LOCATED IN SEZ. WE NOTE THAT THE ASSESSEE UNIT IS LOCATED AT 28 SDF-1 SEEPZ ANDHE RI (EAST) WHICH WAS DECLARED AS SEZ VIDE ORDER NOVEMBER 2000 AND THE ASSESSEE IS ENGAGED IN MANUFACTURING OF ELECTRONICS GOODS SINCE 1977. THERE IS UNCONTROVERTED FINDING IN THE IMPUGNED ORDER THAT THE ENTIRE INCOME OF THE ASSESSEE IS DE RIVED FROM MANUFACTURING THROUGH THIS UNIT LOCATED IN SEZ. WE FURTHER NOTE THAT THE LD. ASSESSING OFFICER DISALLOWED THE BENEFIT TO THE ASSESSEE MERELY ON THE BASIS OF AUDIT REPORT FILED ALONG WITH THE RETURN MENTIONING THAT THE PROVISION OF MAT ARE NOT APPLICABLE TO THE ASSESSEE UNIT AND THE ASSESSEE HA S NOT FILED ANY EVIDENCE TO THE EFFECT THAT THE ASSESSEE UNIT W AS LOCATED IN SEZ. SINCE THE ASSESSEE UNIT IS UNCONTROVERTEDLY LOCATED IN SEZ AND THE CLAIMED DEDUCTION U/S 10AA WAS ALLOWED TO THE ASSESSEE THEREFORE THE ASSESSEE IS NOT LIABLE TO PAY MAT IN VIEW OF SECTION 115JB(6) OF THE ACT FROM ANY BUSINE SS CARRIED ON OR SERVICES RENDERED BY AN ENTREPRENEUR OR DEVE LOPER IN A UNIT IN SPECIFIED ECONOMIC ZONE MORE SPECIFICALLY WHEN THE 4 M/S UNISOUND PVT. LTD. ASSESSMENT YEAR IS INVOLVED IN 2007-08 WHICH IS WI THIN THE PRESCRIBED PERIOD. IN VIEW OF THESE FACTS WE FIND NO INFIRMITY IN CONCLUSION DRAWN BY THE LD. COMMISSIONER OF INCO ME TAX (APPEALS). FINALLY THE APPEAL OF THE REVENUE IS DISMISSED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN TH E PRESENCE OF LD. REPRESENTATIVE FROM BOTH SIDES AT T HE CONCLUSION OF THE HEARING ON 26 TH NOVEMBER 2014. SD/- SD/- (SANJAY ARORA) ( JOGINDER SINGH) ACCOUNTANT MEMBER J UDICIAL MEMBER ! +# MUMBAI; ' DATED.- 26/11/2014 F{X~{T? P.S/. ' . . !' #'$ / COPY OF THE ORDER FORWARDED TO : 1. -. / THE APPELLANT 2. / THE RESPONDENT. 3. ! /$ ( -. ) / THE CIT(A)- CONCERNED MUMBAI 4. ! /$ / CIT CONCERNED MUMBAI 5. 01 $'2 -.% -2( ! +# / DR ITAT MUMBAI E BENCH 6. 34 5# / GUARD FILE. % / BY ORDER 0.$ $ //TRUE COPY// & / %' ( (DY./ASSTT. REGISTRAR) ! +# / ITAT MUMBAI.