The DCIT,(OSD),Range-1,, Ahmedabad v. Atul Limited,, Ahmedabad

ITA 651/AHD/2007 | 2003-2004
Pronouncement Date: 04-03-2010 | Result: Partly Allowed

Appeal Details

RSA Number 65120514 RSA 2007
Assessee PAN AABCA2390A
Bench Ahmedabad
Appeal Number ITA 651/AHD/2007
Duration Of Justice 3 year(s) 22 day(s)
Appellant The DCIT,(OSD),Range-1,, Ahmedabad
Respondent Atul Limited,, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 04-03-2010
Appeal Filed By Department
Order Result Partly Allowed
Bench Allotted D
Tribunal Order Date 04-03-2010
Date Of Final Hearing 04-03-2010
Next Hearing Date 04-03-2010
Assessment Year 2003-2004
Appeal Filed On 12-02-2007
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI BHAVNESH SAINI JUDICIAL MEMBER AND SHRI N.S. SAINI ACCOUNTANT MEMBER DATE OF HEARING:04/03/2010 DRAFTED ON: 04/03/2 010 ITA NO.651/AHD/2007 ASSESSMENT YEAR : 2003-2004 DY.CIT (OSD) RANG-1 AHMEDABAD 3 RD FLOOR JITENDRA CHAMBERS NR. NEW RBI LANE ASHRAM ROAD AHEMDABAD-380014 VS. ATUL LTD. ASHOKA CHAMBERS RASALA MARG ELLISHBRIDGE AHMEDABAD. PAN/GIR NO. : AABCA 2390 A (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI B.S.SANDHU CIT RESPONDENT BY: SHRI S.N.SOPARKAR. A.R. O R D E R PER N.S.SAINI ACCOUNTANT MEMBER :- THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-V AHM EDABAD DATED 21.11.2006. 2. THE GROUNDS OF THE APPEAL READS AS UNDER:- 3) THE CIT(A) ERRED IN LAW AND ON FACTS IN DIRECTI NG I) TO RECOMPUTED HE DEDUCTION UNDER SECTION 80HHC I N VIEW OF THE ITAT ORDER IN THE CASE OF ATUL INTERMED IATES AS THE DEDUCTION U/S. 80IA AND 80IB OF THE INCOME TAX ACT ARE SEPARATELY ALLOWABLE. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE LEARNED ASSESSING OFFICER WHILE CALCULATING DEDUCTION UNDER SECTION 80HHC 80 IA AND 80IB OF THE ACT BY INVOKING THE PROVISIONS OF SECTION 80IA (9) OF THE ACT FIRST ALLOWED DEDUCTION UNDER SECTION 80IA AND THEREAFTER ALLOWE D DEDUCTION UNDER ITA NO .651 /AHD/2007 - 2 - SECTION 80HHC ON THE BALANCE AMOUNT REMAINING AFTE R THE DEDUCTION UNDER SECTION 80IA. IN APPEAL THE LEARNED COMMISSIONER O F INCOME TAX(APPEALS) ALLOWED DEDUCTION UNDER SECTION 80HHC TO THE ASSESS EE WITHOUT REDUCING THE AMOUNT OF DEDUCTION ALLOWED THE ASSESSEE UNDER SECTION 80IA OF THE ACT. BEING AGGRIEVED BY THE SAID ACTION OF THE LEARNED CO MMISSIONER OF INCOME TAX(APPEALS) THE REVENUE IS IN APPEAL BEFORE US. 4. BOTH THE PARTIES AT THE TIME OF THE HEARING SUB MITTED THAT THE ISSUE IS NOW COVERED AGAINST THE ASSESSEE BY THE DECISION OF THE DELHI SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF ACIT VS. HINDUSTAN M INT AND AGRO PRODUCTS PVT. LTD. (2009) 315 ITR (AT) 401(DELHI)(SB) WHEREIN IT WAS HELD THAT THE DEDUCTION TO BE ALLOWED UNDER ANY OTHER PROVISIONS O F CHAPTER VI-A OF THE INCOME TAX ACT 1961 WITH THE HEADING C IS TO BE REDUCED BY THE AMOUNT OF DEDUCTION ALLOWED UNDER SECTION 80IB OR SECTION 80I-A OF THE ACT. THEREFORE THIS GROUND OF APPEAL OF THE REVENUE IS A LLOWED. 5. GROUND NO.3.(II) READS AS UNDER:- 3. THE CIT(A) ERRED IN LAW AND ON FACTS IN DIRECTIN G II) TO EXCLUDE SALES TAX AND EXCISE DUTY FROM TOTAL TURNOVER AND RECOMPUTED THE DEDUCTION U/S. 80HHC OF THE I.T.ACT. 6. THE BRIEF FACTS OF THE CASE ARE THAT THE LEARNED ASSESSING OFFICER WHILE CALCULATING THE DEDUCTION UNDER SECTION 80HHC INCLUDED THE AMOUNT OF SALE TAX AND EXCISE DUTY IN THE TOTAL TURNOVER OF TH E ASSESSEE. ON APPEAL THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS)HELD THA T SALES TAX AND EXCISE DUTY WAS NOT INCLUDABLE IN THE TOTAL TURNOVER FOR CO MPUTING DEDUCTION UNDER SECTION 80HHC. BEING AGGRIEVED BY THE SAID ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) THE REVENUE IS IN APPEAL BEFORE US. ITA NO .651 /AHD/2007 - 3 - 7. BOTH THE PARTIES AGREED AT THE TIME OF THE HEARI NG THAT THE ISSUE IS NOW COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF HON'BLE SUPREME COURT IN THE CASE OF CIT VS. LAXMI MACHINE WORKS (( 2007) 290 ITR 667(SC) WHEREIN IT WAS HELD THAT EXCISE DUTY AND SALE TAX A RE NOT INCLUDIBLE IN THE TOTAL TURNOVER IN THE FORMULA CONTAINED IN SECTION 80HHC(3). THEREFORE THIS GROUND OF APPEAL OF THE REVENUE IS DISMISSED. 8. IN THE RESULT THE APPEAL OF THE REVENUE IS PARTL Y ALLOWED. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE H EARING IN THE PRESENCE OF THE PARTIES ON 4.03.2010. SD/- SD/- (BHAVNESH SAINI) ( N.S. SAINI ) JUDICIAL MEMBER AC COUNTANT MEMBER AHMEDABAD; DATED 04/03/2009 PREPARED AND COMPARED BY PARAS# COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT(APPEALS)-XVI AHMEDABAD 5. THE DR AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER //TRUE COPY// (DY./ASSTT.REGISTRAR) ITAT AHMEDABAD