M/S. DR. SMITA P. NARAM, MUMBAI v. THE DY CIT CEN CIR-9, MUMBAI

ITA 6382/MUM/2007 | 2004-2005
Pronouncement Date: 07-05-2010 | Result: Allowed

Appeal Details

RSA Number 638219914 RSA 2007
Assessee PAN AAAPN6312Q
Bench Mumbai
Appeal Number ITA 6382/MUM/2007
Duration Of Justice 2 year(s) 6 month(s) 20 day(s)
Appellant M/S. DR. SMITA P. NARAM, MUMBAI
Respondent THE DY CIT CEN CIR-9, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 07-05-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted J
Tribunal Order Date 07-05-2010
Date Of Final Hearing 28-04-2010
Next Hearing Date 28-04-2010
Assessment Year 2004-2005
Appeal Filed On 17-10-2007
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES J MUMBAI BEFORE SHRI. N.V. VASUDEVAN (J.M.) AND SHRI. PRAMOD KUMAR (A.M) ITA NO.6382/MUM/2007 ASSESSMENT YEAR: 2004-2005 DR. SMITA P. NARAM C-49-50 PARVASHI INDL. ESTATE 2 ND FLR. OFF. AAREY RD. GOREGAON MUMBAI 400 063. PAN : AAAPN6312Q VS. ACIT CIR 18(2) PIRAMAL CHAMBER 1 ST FLR. LALBAUG PAREL MUMBAI 400 012. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ANUP MEHTA RESPONDENT BY : SHRI PRABHAT JHA O R D E R PER N.V. VASUDEVAN J.M. THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 11.09.2007 OF LEARNED CIT(A) CENTRAL - VII MUMBAI RELATING TO ASSESSMENT YEAR 2004- 05. 2. THE ONLY ISSUE THAT ARISES FOR THE CONSIDERATION ON THIS APPEAL BY THE ASSESSEE IS AS TO WHETHER THE ASSESSEE IS ENTITLED TO DEDUCTION U/S.80R OF A SUM OF RS.3 19 175/-. THE FACTS OF THE CASE ARE T HAT THE ASSESSEE IS BASICALLY A PRACTICING AYURVEDIC DOCTOR APART FROM BEING THE DIRECTOR OF A CONCERN ENGAGED IN MANUFACTURING AYURVEDIC MEDICINE S M/S. AYUSHAKTI AYURVED P. LTD. ALONG WITH HER HUSBAND SHRI PANKAJ K. NARAM WHO IS ALSO AN AYRVEDIC PHYSICIAN. DURING THE YEAR THE AS SESSEE CLAIMED DEDUCTION U/S.80R AMOUNTING TO RS.3 19 175/-. SIMILAR CLAIM OF THE APPELLANT WAS DISALLOWED IN THE BLOCK ASSESSMENT ORDER AND ALSO I N SUBSEQUENT YEARS IN REGULAR ASSESSMENTS. THE MAIN FINDING OF THE ASS ESSING OFFICER WAS THAT THE ASSESSEE WAS NEITHER A PROFESSOR NOR A TEACHER ATTACHED TO ANY INSTITUTION AND DERIVED PROFESSIONAL INCOME AS A PR ACTICING DOCTOR AND DERIVED INCOME FROM ABROAD IN THAT CAPACITY ONLY AN D WAS THEREFORE NOT ELIGIBLE FOR DEDUCTION U/S.80R OF THE ACT. ITA NO.6382/MUM/2007 A.Y.: 2004-2005 2 3. BEFORE THE CIT(A) IT WAS SUBMITTED THAT THE ASSE SSEE DERIVED SUCH INCOME BY DELIVERING LECTURES ATTENDING SEMINARS E TC AND FULFILLED ALL REQUISITE CONDITIONS LAID DOWN IN SECTION 80R OF TH E ACT. IT WAS ALSO SUBMITTED THAT SHE GOT THE REMUNERATION FOR UNDERTA KING SUCH LECTURES ETC. IN SUPPORT OF THE CONTENTION THE ASSESSEE SUBMITTE D CERTAIN PHOTOGRAPHS IN WHICH THE ASSESSEE AND HER HUSBAND HAVE BEEN SHOWN AS GIVING LECTURES AND DEMONSTRATIONS. IT WAS ALSO ARGUED THAT THE A SSESSEE COULD NOT PRACTICE ABROAD DUE TO STRINGENT RULES AND REGULATI ONS PREVAILING IN THOSE COUNTIES. IT WAS CONTENDED THAT THE ASSESSING OF FICER FAILED TO TAKE INTO CONSIDERATION VARIOUS EVIDENCE SUCH AS CONFIRMATION S INWARD REMITTANCE CERTIFICATES AND PHOTOGRAPHS. IT WAS FURTHER SUBM ITTED THAT SECTION 80R BEING AN INCENTIVE PROVISION FOR BRINGING FOREIGN E XCHANGE NEEDS TO BE INTERPRETED LIBERALLY. IT WAS ALSO SUBMITTED THAT IN THE IMMEDIATELY PRECEDING ASSESSMENT YEAR I.E.2003-04 LEARNED PRE DECESSOR OF CIT(A) IN APPEAL NO. CIT(A)C-VII/IT-19/06-07 DATED 13.11.2006 DISALLOWED SIMILAR CLAIM OF THE ASSESSEE WHILE IN APPEAL NO.2002-03 A NOTHER CIT(A) VIDE ORDER DATED 16.01.2006 ALLOWED THE CLAIM OF THE ASSESSEE. 3. THE CIT(A) FOLLOWING THE AFORESAID ORDER OF THE CIT(A) FOR THE ASSESSMENT YEAR 2003-04 DISALLOWED THE CLAIM OF THE ASSESSEE FOR DEDUCTION U/S.80R OF THE ACT GIVING RISE TO THE PRESENT APPE AL BY THE ASSESSEE BEFORE THE TRIBUNAL. 4. AT THE TIME OF HEARING OF THIS APPEAL IT WAS BRO UGHT TO OUR NOTICE THAT AGAINST THE ORDER OF THE CIT(A) FOR ASSESSMENT YEAR 2003-04 IN ASSESSEES OWN CASE THE ASSESSEE HAD PREFERRED APPEAL BEFORE THE TRIBUNAL IN ITA NO.182/MUM/07 AND THIS TRIBUNAL BY ORDER DATED 28.0 8.2009 WAS PLEASED TO HOLD THAT ASSESSEE WILL ENTITLED TO DEDUCTION U/ S.80R OF THE ACT. THE RELEVANT OBSERVATION BY THE TRIBUNAL READ AS FOLLOW S: 12. THE ASSESSEE HAS RECEIVED THE REMUNERATION FOR HIS ASSIGNMENTS OF TEACHING PULSE READING TO WESTERN DO CTORS AND FOR CONSULTANCY IN PULSE READING IN AYURVEDIC MEDICINE AND ACCORDINGLY WE ARE OF THE OPINION THAT THE PROVISI ONS OF SECTION 80R SATISFIED. MOREOVER IT IS ALSO ON RECORD THA T THE ASSESSEE ITA NO.6382/MUM/2007 A.Y.: 2004-2005 3 WAS ALLOWED DEDUCTION IN EARLIER YEARS TILL A SEARC H HAS TAKEN PLACE IN ASSESSEES PREMISES AND ASSESSING OFFICER HAS TAKEN A DIFFERENT STAND IN THE BLOCK ASSESSMENT AND SUBSEQU ENT ASSESSMENT YEARS. BE IT AS THAT MAY THE FACT THA T THE ASSESSEE HAS RECEIVED REMUNERATION IN HIS CAPACITY AS TEACHE R OR RESEARCH WORKER CANNOT BE DOUBTED AND ON THE FACTS OF THE CA SE WE ARE OF THE OPINION THAT THE ASSESSEE IS ENTITLED FOR DEDUC TION U/S.80R. 5. SINCE THE FACTS AND CIRCUMSTANCES IN THE PRESENT ASSESSMENT YEAR ARE IDENTICAL RESPECTFULLY FOLLOWING THE DECISION OF THE TRIBUNAL WE DIRECT THE ASSESSING OFFICER TO ALLOW THE CLAIM OF ASSESSEE FO R DEDUCTION U/S.80R OF THE ACT. 4. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED ON THIS 7 TH DAY OF MAY 2010. SD/- (PRAMOD KUMAR) (ACCOUNTANT MEMBER) SD/- (N.V. VASUDEVAN) (JUDICIAL MEMBER) MUMBAI DATED 07 TH MAY 2010. JANHAVI COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. COMMISSIONER OF INCOME TAX (APPEALS)- MUMB AI 4. COMMISSIONER OF INCOME TAX CITY- MUMBAI 5. DEPARTMENTAL REPRESENTATIVE BENCH J MUMBAI //TRUE COPY// BY ORDER ASSTT. REGISTRAR ITAT MUMBAI DATE INITIALS 1. DRAFT DICTATED ON 28.04.2010 PS 2. DRAFT PLACED BEFORE AUTHOR 28.04.2010 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER AM/JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/J M 5. APPROVED DRAFT COMES TO THE SR. PS PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER