ACIT CIR 4(3), MUMBAI v. RUNGTA RAYON TEX P. LTD, MUMBAI

ITA 4916/MUM/2009 | 2006-2007
Pronouncement Date: 30-04-2010 | Result: Dismissed

Appeal Details

RSA Number 491619914 RSA 2009
Bench Mumbai
Appeal Number ITA 4916/MUM/2009
Duration Of Justice 8 month(s) 3 day(s)
Appellant ACIT CIR 4(3), MUMBAI
Respondent RUNGTA RAYON TEX P. LTD, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 30-04-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 30-04-2010
Assessment Year 2006-2007
Appeal Filed On 27-08-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES D MUMBAI BEFORE SHRI R.S.SYAL AM AND SMT.ASHA VIJAYARAGHAVAN JM ITA NO.4916/MUM/2009 : ASST.YEAR 2006-2007 THE ASSTT.COMMISSIONER OF INCOME-TAX CIRCLE 4(3) MUMBAI. VS. M/S.RUNGTA RAYON TEX PRIVATE LIMITED 306 KAKAD MARKET 306 KALBADEVI ROAD MUMBAI 400 002. PA NO.AAACS7868M. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PEEYUSH JAIN RESPONDENT BY : SHRI DEEPAK SHAH O R D E R PER R.S.SYAL AM : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 3 RD JULY 2009 IN RELATION TO THE ASSESSMENT YEAR 2006-2007. 2. THE ONLY EFFECTIVE GROUND IS AGAINST THE DIRECTI ON OF THE LEARNED CIT(A) TO ALLOW DEDUCTION U/S.80-IB AMOUNTING TO RS.28 73 432 BY HOLDING THAT PROCESSING OF POY INTO TEXTURISED YARN IS MANUFACTURING ACTIVITY FOLLOWING THE JUDGEMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF M/ S.EMPTEE POLY YARN PRIVATE LIMITED WHICH IS SUBJUDICE BEFORE THE HONBLE SUPREME COURT. 3. FILTERING OUT UNNECESSARY DETAILS IT IS SE EN THAT THE ASSESSING OFFICER DID NOT ALLOW DEDUCTION U/S.80-IB. HOWEVER THE LEARNED CIT (A) FOLLOWING THE JUDGEMENT OF THE BOMBAY HIGH COURT IN THE CASE OF EMPTEE POLY YARN PRIVATE LIMITED ACCEPTED THE ASSESSEES CLAIM. THE CASE OF THE ASSE SSEE FOR THE ASSESSMENT YEAR 2003-2004 CAME UP FOR ADJUDICATION BEFORE THE TRIBU NAL. VIDE ORDER DATED 30.1.2009 IN ITA NO.3973/MUM/2007 THE TRIBUNAL ACC EPTED THE ASSESSEES CLAIM QUA THE ALLOWABILITY OF DEDUCTION U/S.80-IB ON THE STRENGTH OF THE JUDGEMENT OF THE ITA NO.4916/MUM/2009 M/S.RUNGTA RAYON TEX PRIVATE LIMITED. 2 HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. EMPTEE POLY YARN P.LTD. [(2008) 305 ITR 309 (BOM.)] . IT IS NOTED THAT THE REVENUE PREFERRED AN APPEAL BEFORE THE HONBLE SUPREME COURT AGAINST THE JUDGEM ENT OF THE HONBLE JURISDICTIONAL HIGH COURT. THE HONBLE SUPREME COUR T IN CIT VS. EMPTEE POLY YARN PVT. LTD. [(2010) 320 ITR 665 (SC)] HAS UPHELD THE JUDGEMENT OF THE HONBLE BOMBAY HIGH COURT. IN VIEW OF THE FOREGOING DISCUSS ION IT IS NOTED THAT THE QUESTION OF ALLOWING DEDUCTION U/S.80-IB IN THE PRE SENT CIRCUMSTANCES IS NO MORE RES INTEGRA IN VIEW OF THE JUDGEMENT OF THE HONBLE SUPREME CO URT. WE THEREFORE APPROVE THE VIEW TAKEN BY THE LEARNED CIT(A). 4. IN THE RESULT THE APPEAL IS DISMISSED. ORDER PRONOUNCED ON THIS 30 TH DAY OF APRIL 2010. SD/- SD/- ( ASHA VIJAYARAGHAVAN ) ( R.S.SYAL ) JUDICIAL MEMBER ACCOUNTANT M EMBER MUMBAI : 30 TH APRIL 2010 . DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENTS. 3. THE CIT CONCERNED 4. THE CIT(A) - XIV MUMBAI. 5. THE DR/ITAT MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR ITAT MUMBAI. ITA NO.4916/MUM/2009 M/S.RUNGTA RAYON TEX PRIVATE LIMITED. 3 DATE INITIAL 1. DRAFT DICTATED ON 27.04.2010 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 28.04.2010 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/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. *