ACIT 6(3), MUMBAI v. GOLDEN CROSS PHARMA P.LTD, MUMBAI

ITA 5912/MUM/2010 | 2007-2008
Pronouncement Date: 18-11-2011 | Result: Partly Allowed

Appeal Details

RSA Number 591219914 RSA 2010
Bench Mumbai
Appeal Number ITA 5912/MUM/2010
Duration Of Justice 1 year(s) 3 month(s) 21 day(s)
Appellant ACIT 6(3), MUMBAI
Respondent GOLDEN CROSS PHARMA P.LTD, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 18-11-2011
Appeal Filed By Department
Order Result Partly Allowed
Bench Allotted G
Tribunal Order Date 18-11-2011
Date Of Final Hearing 03-11-2011
Next Hearing Date 03-11-2011
Assessment Year 2007-2008
Appeal Filed On 27-07-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH G MUMBAI BEFORE SHRI J. SUDHAKAR REDDY A.M. AND SHRI V. DUR GA RAO J.M. ITA NO. 5912/MUM/2010 ASSESSMENT YEAR : 2007-08 ASSTT. COMMISSIONER OF INCOME-TAX APPELLAN T R.NO. 522 5 TH FLOOR AAYAKAR BHAVAN M.K. ROAD MUMBAI 400 020. VS. M/S GOLDEN CROSS PHARMA PVT. LTD. RESPONDEN T 12 GUNBOW STREET FORT MUMBAI 400 001 (PAN AABCG541J) APPELLANT BY : MR. A.K. NAYAK REVENUE BY : NONE DATE OF HEARING : 03/11/2011 DATE OF PRONOUNCEMENT : 18/11/ 2011 ORDER PER V. DURGA RAO J.M.: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER OF CIT(A)- 12 MUMBAI PASSED ON 11/02/2010 FOR THE AS SESSMENT YEAR 2007-08. 2. NONE APPEARED ON BEHALF OF THE RESPONDENT-ASSESS EE AT THE TIME OF HEARING BEFORE US HOWEVER WE PROCEEDED TO DECI DE THE APPEAL AFTER HEARING THE LEARNED DR AND ON MERITS. 3. GROUND NO. 1 IS DIRECTED AGAINST THE ACTION OF T HE CIT(A) IN ALLOWING THE DEDUCTION U/S 80IB AMOUNTING TO RS. 1 51 01 912/-. 4. THE AO DENIED DEDUCTION CLAIM OF THE ASSESSEE U/ S 80IB FOLLOWING ASSESSMENT ORDERS OF EARLIER YEARS BY HOL DING THAT JOB WORK RECEIPTS WERE NOT INCOME ELIGIBLE FOR DEDUCTION U/S 80IB. ON APPEAL ITA NO. 5912/M/2010 M/S GOLDEN CROSS PHARMA PVT. LTD. 2 THE CIT(A) FOLLOWING THE DECISION OF CIT(A) IN ASSE SSEES OWN CASE IN AY 2006-07 ALLOWED THE CLAIM OF THE ASSESSEE. AGGRI EVED THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. 5. AFTER HEARING THE LEARNED DR AND PERUSING THE MA TERIAL ON RECORD WE FIND THAT THE ISSUE IS COVERED BY THE DE CISION OF CO-ORDINATE BENCH IN ASSESSEES OWN CASE FOR AY 2006-07 IN ITA NO. 4021/M/2009 VIDE ORDER DATED 21/05/2010 WHEREIN THE CO-ORDINATE BENCH HELD AS UNDER:- 2.2 WE HAVE PERUSED THE RECORDS AND CONSIDERED THE MATTER CAREFULLY. THE DISPUTE IS REGARDING ALLOWABILITY OF DEDUCTION U/S 80IB IN CASE OF GOODS MANUFACTURED BY THE ASSESSEE ON CONTRACT BASIS. THE AO HAS DENIED THE CLAIM OF THE ASSESSEE BASICALLY ON THE BASIS OF EXPLANATION TO SECTION 80IA AS PER WHI CH DEDUCTION UNDER SECTION 80IA IS NOT ALLOWABLE IN RESPECT OF G OODS MANUFACTURED ON WORK CONTRACT BASIS. WE AGREE WITH THE SUBMISSIONS OF THE LEARNED AR THAT THE SAID EXPLANA TION IS APPLICABLE ONLY TO THE BUSINESS IN RESPECT OF WHICH DEDUCTION UNDER SECTION 80IA IS ALLOWABLE AND THERE IS NO SUC H EXPLANATION INSERTED IN THE SECTION 80IB. THEREFORE THE SAID EX PLANATION TO SECTION 80IA WILL NOT BE APPLICABLE IN CASE OF SECT ION 80IB. AS REGARDS THE ALLOWABILITY OF DEDUCTION IN RESPECT OF GOODS MANUFACTURED ON JOB WORK BASIS THE ISSUE IS ALREAD Y DECIDED IN FAVOUR OF THE ASSESSEE BY THE JUDGMENT OF HONBLE H IGH COURT OF MADRAS IN CASE OF TAJ FIRE WORKS 288 ITR 92 (MADRA S) WHICH HAS BEEN FOLLOWED BY THE TRIBUNAL IN CASE OF M/S ADVANC E REMEDIES PVT. LTD. (ITA NO. 5714/M/2008 DATED 31/08/2009). N O CONTRARY JUDGMENT OF JURISDICTIONAL HIGH COURT OR THE APEX C OURT HAS BEEN BROUGHT TO THE NOTICE. WE THEREFORE RESPECTFULLY FO LLOWING THE JUDGMENT AFORESAID SEE NO INFIRMITY IN THE ORDER OF THE CIT(A) AND THE SAME IS THEREFORE UPHELD. 6. SINCE THE ISSUE UNDER CONSIDERATION IS IDENTICAL TO THAT OF AY 2006-07 WE RESPECTFULLY FOLLOW THE DECISION OF COO RDINATE BENCH AND IN THE LIGHT OF THAT WE FIND NO INFIRMITY IN THE OR DER OF CIT(A) IN ALLOWING THE DEDUCTION CLAIM OF ASSESSEE U/S 80IB THEREFORE THE SAME IS HEREBY UPHELD. ACCORDINGLY THIS GROUND IS DISMISSED. 7. GROUND NO. 2 IS DIRECTED AGAINST THE ACTION OF T HE CIT(A) IN DELETING THE ADDITION OF RS. 41 24 133/- ON ACCOUNT OF UNUTILIZED MODVAT CREDIT. ITA NO. 5912/M/2010 M/S GOLDEN CROSS PHARMA PVT. LTD. 3 8. THIS ISSUE IS ALSO COVERED BY THE DECISION OF CO ORDINATE BENCH IN ASSESSEES OWN CASE FOR AY 2006-07 (SUPRA) WHEREIN THE TRIBUNAL HELD AS UNDER:- 3.2 WE HAVE PERUSED THE RECORDS AND CONSIDERED THE MATTER CAREFULLY. THE DISPUTE IS REGARDING ADDITION ON ACC OUNT OF UNUTILIZED MODVAT CREDIT IN RESPECT OF INPUTS IN TH E CLOSING STOCK. THE CASE OF THE ASSESSEE IS THAT THE CLOSING STOCK BELONGED TO THE PARTIES ON WHOSE BEHALF THE ASSESSEE IS MANUFACTURI NG THE GOODS AND THE SAID STOCK HAD ALREADY BEEN DECLARED BY THO SE PARTIES IN THEIR BOOKS OF ACCOUNT AND THEREFORE NO ADDITION CO ULD BE MADE IN CASE OF THE ASSESSEE. IN OUR VIEW THE MATTER REQUIR ES VERIFICATION AS THIS ASPECT THAT THE STOCK HAD ALREADY BEEN DECL ARED BY THOSE PARTIES IN THEIR BOOKS HAS NOT BEEN LOOKED INTO BY THE AUTHORITIES BELOW. IN CASE THE STOCK HAS BEEN SHOWN BY THE ASSE SSEE ONLY FOR THE PURPOSE OF ACCOUNTING AND THIS HAS ALREADY BEEN DECLARED BY THOSE PARTIES IN THEIR BOOKS NO ADDITION COULD BE M ADE IN CASE OF THE ASSESSEE. WE THEREFORE RESTORE THIS ISSUE TO TH E FILE OF AO FOR PASSING A FRESH ORDER AFTER NECESSARY VERIFICATION AND AFTER ALLOWING OPPORTUNITY TO THE ASSESSEE. 9. SINCE THE ISSUE UNDER CONSIDERATION IS IDENTICAL TO THAT OF AY 2006-07 RESPECTFULLY FOLLOWING THE DECISION OF COO RDINATE BENCH IN THAT YEAR (SUPRA) WE SET ASIDE THE ORDER OF THE CIT(A) AND RESTORE THE ISSUE BACK TO THE FILE OF THE AO FOR PASSING A FRES H ORDER AFTER NECESSARY VERIFICATION AND AFTER ALLOWING OPPORTUNI TY TO THE ASSESSEE. THUS THIS GROUND IS ALLOWED FOR STATISTICAL PURPOS E. 10. IN THE RESULT APPEAL OF THE REVENUE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 18 TH DAY OF NOVEMBER 2011. SD/- SD/- (J. SUDHAKAR REDDY) (V . DURGA RAO) ACCOUNTANT MEMBER JUDI CIAL MEMBER MUMBAI DATED: 18 TH NOVEMBER 2011 KV ITA NO. 5912/M/2010 M/S GOLDEN CROSS PHARMA PVT. LTD. 4 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) CONCERNED. 4) THE CIT CONCERNED. 5) THE DEPARTMENTAL REPRESENTATIVE G BENCH I.T .A.T. MUMBAI. BY ORDER //TRUE COPY// ASST. REGISTRAR I.T.A.T. MUMBAI.