DCIT circle 9 (1), v. Sudhir Genset Ltd,

ITA 4518/DEL/2007 | 2004-2005
Pronouncement Date: 17-03-2011 | Result: Allowed

Appeal Details

RSA Number 451820114 RSA 2007
Assessee PAN AABCS6697K
Bench Delhi
Appeal Number ITA 4518/DEL/2007
Duration Of Justice 3 year(s) 4 month(s)
Appellant DCIT circle 9 (1),
Respondent Sudhir Genset Ltd,
Appeal Type Income Tax Appeal
Pronouncement Date 17-03-2011
Appeal Filed By Department
Order Result Allowed
Bench Allotted I
Tribunal Order Date 17-03-2011
Date Of Final Hearing 17-03-2011
Next Hearing Date 17-03-2011
Assessment Year 2004-2005
Appeal Filed On 16-11-2007
Judgment Text
ITA NO. 4518/DEL/2007 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH I NEW DELHI BEFORE SHRI I.P. BANSAL JUDICIAL MEMBER AND SHRI SHAMIM YAHYA ACCOUNTANT MEMBER I.T.A. NO. 4518/DEL/2007 A.Y. : 2004-05 DCIT CIRCLE 9(1) ROOM NO. 163 CR BUILDING IP ESTATE NEW DELHI 110 002 VS. M/S SUDHIR GENSET LTD. 507 INTERNATIONAL TRADE TOWER NEHRU PLACE NEW DELHI (PAN/GIR NO. : AABCS6697K) (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSEESSEE BY : SH . M.S. SAHNI ADVOCATE DEPARTMENT BY : SH. A.K. MONGA SR. D.R. ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DATED 06.09. 2007 PERTAINING TO ASSESSMENT YEAR 2004-05. 2. THE ISSUE RAISED IS THAT LD. COMMISSIONER OF INCO ME TAX (APPEALS) ERRED IN DIRECTING THE ASSESSING OFFICER TO INCLUDE THE INTEREST INCOME OF THE ASSESSEE COMPANY FROM FDRS KEP T AS MARGIN MONEY WITH BANK WHILE COMPUTING THE DEDUCTION U/S 80I B. ITA NO. 4518/DEL/2007 2 3. IN THIS CASE THE ASSESSING OFFICER HAD NOT CONS IDERED INTEREST ON FDRS AS PROFIT FROM INDUSTRIAL UNDERTAKING WHILE WORKI NG OUT THE CLAIM OF SECTION 80IA OF THE IT ACT. 4. UPON ASSESSEES APPEAL LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS DECIDED THE ISSUE IN FAVOUR OF THE AS SESSEE. 5. AGAINST THIS ORDER THE REVENUE IS IN APPEAL BEFO RE US. 6. BOTH THE COUNSEL FAIRLY AGREED THAT NOW THE ISS UE STANDS COVERED AGAINST THE ASSESSEE BY THE DECISION OF THE HONBLE APEX COURT IN THE CASE OF LIBERTY INDIA VS. C.I.T. [317 ITR 218] (SC) . IN THIS CASE THE HONBLE APEX COURT HAS EXPOUNDED THAT SECTION 80IA AND SECTION 80IB ARE A CODE BY THEMSELVES AS THEY CONTAIN BOTH SUBSTA NTIVE AS WELL AS PROCEDURAL PROVISIONS. SECTION 80IB PROVIDES FOR T HE ALLOWING OF DEDUCTION IN RESPECT OF PROFITS AND GAINS DERIVED F ROM THE ELIGIBLE BUSINESS. THE CONNOTATION OF THE WORDS DERIVED FR OM IS NARROWER AS COMPARED TO THAT OF THE WORDS ATTRIBUTABLE TO. B Y USING THE EXPRESSION DERIVED FROM PARLIAMENT INTENDED TO COVE R SOURCES NOT BEYOND THE FIRST DEGREE. 7. RESPECTFULLY FOLLOWING THE ABOVE PRECEDENT WE HOLD THAT THE INTEREST INCOME EARNED BY THE ASSESSEE IS NOT ELIGI BLE FOR DEDUCTION U/S ITA NO. 4518/DEL/2007 3 80IB AND THE SAME CANNOT BE SAID TO HAVE BEEN DERIVE D FROM THE ELIGIBLE BUSINESS. 8. IN THE RESULT THE APPEAL FILED BY THE REVENUE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 17/03/2011 UP ON CONCLUSION OF HEARING. SD/- SD/- [ [[ [I.P. BANSAL I.P. BANSAL I.P. BANSAL I.P. BANSAL] ]] ] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 17/03/2011 SRB COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR ITAT TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT DELHI BENCHES