ACIT, Hyderabad v. Balaji Electro smelters Ltd.,, Secunderabad

ITA 577/HYD/2009 | 2000-2001
Pronouncement Date: 26-03-2010 | Result: Allowed

Appeal Details

RSA Number 57722514 RSA 2009
Assessee PAN AAACB7881P
Bench Hyderabad
Appeal Number ITA 577/HYD/2009
Duration Of Justice 10 month(s) 28 day(s)
Appellant ACIT, Hyderabad
Respondent Balaji Electro smelters Ltd.,, Secunderabad
Appeal Type Income Tax Appeal
Pronouncement Date 26-03-2010
Appeal Filed By Department
Order Result Allowed
Bench Allotted B
Tribunal Order Date 26-03-2010
Date Of Final Hearing 10-03-2010
Next Hearing Date 10-03-2010
Assessment Year 2000-2001
Appeal Filed On 28-04-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B HYDERABAD BEFORE SHRI G.C. GUPTA VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO.577/HYD/2009 ASSESSMENT YEAR: 2000-01 ITA NO.578/HYD/2009 ASST. YEAR 2001-02 ASST. CIT CIRCLE 1(3) HYDERABAD VS M/S BALAJI ELECTRO SMELTERS LTD. HYDERABAD. (AAACB 7881P) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI E.S. NAGENDRA PRASAD RESPONDENT BY : SHRI S. RAMA RAO O R D E R PER CHANDRA POOJARI ACCOUNTANT MEMBER: THESE TWO APPEALS PREFERRED BY THE REVENUE IS DIRE CTED AGAINST THE COMMON ORDER PASSED BY THE CIT(A)-II DATED 23.2.2009 AND PERTAINS TO THE ASSESSMENT YEAR 2000-01 AND 2001-02. SINCE ISSUES INVOLVED IN THESE TWO APPEALS ARE COMMON THEY ARE CLUB BED TOGETHER HEARD TOGETHER AND DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE REVENUE RAISED THE FOLLOWING COMMON GROUNDS: 1. THE CIT(A) ERRED IN DIRECTING THE ASSESSING OFF ICER TO ALLOW THE DEDUCTION U/S 80HHC ON BOOK PROFITS U/S 115JA/115JB OF THE ACT AS AGAINST THE NORMAL ALLOWABLE U/S 80HHC AND 80IA OF THE IT ACT. 2. THE CIT(A) OUGHT TO HAVE APPRECIATED THE FACT T HAT THE ADJUSTMENT U/S 115JA/115JB FOR SEC.80HHC AND 80IA HAS CLEARLY ENVISAGED COMPUTATION AS SPECIFIED IN PROVISIONS U/S 80HHC AN D 80IA. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MAT ERIAL ON RECORD. THE BOMBAY HIGH COURT IN THE CASE OF CIT V. AJ ANTA PHARMA 223 CTR 441 (MUM) WHEREIN IT WAS HELD THAT FOR THE PURPOSE OF 2 2 CALCULATING BOOK PROFIT U/S 115JB UNDER EXPLANATION 1 SUB CLAUSE (I)(IV) THE EXPORT PROFIT TO BE EXCLUDED FROM THE BOOK PROFI TS WOULD BE THE EXPORT PROFITS ALLOWED AS A DEDUCTION U/S 80HHC AFTER REST RICTING THE DEDUCTION AS PER THE PROVISIONS OF SUB SEC. (1B) TO SEC.80HHC AND NOT THE EXPORT PROFITS CALCULATED AS PER SUB SEC.((3) AND (3A ) TO SEC.80HHC BEFORE APPLYING THE RESTRICTION CONTAINED IN SEC.(1B) OF SEC.80HHC. FURTHER IT WAS OBSERVED IN THE SAID JUDGEMENT THAT THE RE CANNOT BE TWO VIEWS. THE ONLY VIEW AS EXPLAINED EARLIER IS THAT TH E MAT COMPANY ARE ENTITLED TO THE SAME DEDUCTION OF EXPORT PROFITS U/S 80 HHC AS ANY OTHER COMPANY INVOLVED IN EXPORT IN TERMS OF SEC. 80HHC (1B). ONCE THAT BE THE CASE THE GROUND RAISED BY THE ASSESSEE IS DEVOID OF M ERIT. IN VIEW OF THIS DECISION WE ARE INCLINED TO REVERSE THE ORDER OF THE CIT(A) AND ALLOW THE GROUND TAKEN BY THE REVENUE. 5. IN THE RESULT THE APPEALS OF THE REVENUE IN IT A NOS.577 & 578/HYD/2009 ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT : 26 .3.2010 SD/- SD/- G.C. GUPTA CHANDRA POOJARI VICE PRESIDENT ACCOUNTANT MEMBER DATED THE 26 TH MARCH 2010 COPY FORWARDED TO: 1. THE ACIT CIRCLE 1 (3) ROOM NO.413 4 TH FLOOR AYAKAR BHAVAN HYDERABAD 2. M/S BALAJI ELECTRO SMELTERS LTD. 202 PLOT NO.9 RAG HAVA COOPERATIVE HOUSING SOCIETY SIKH VILLAGE SECUNDERABAD . 3. CIT(A)- II HYDERABAD. 4. CIT HYDERABAD 5. THE D.R. ITAT HYDERABAD. NP