THE ACIT 23(3), MUMBAI v. M/S. SIMPLEX INDUSTRIES, MUMBAI

ITA 6867/MUM/2007 | 2003-2004
Pronouncement Date: 13-04-2010 | Result: Allowed

Appeal Details

RSA Number 686719914 RSA 2007
Assessee PAN AAGFS4488N
Bench Mumbai
Appeal Number ITA 6867/MUM/2007
Duration Of Justice 2 year(s) 4 month(s) 29 day(s)
Appellant THE ACIT 23(3), MUMBAI
Respondent M/S. SIMPLEX INDUSTRIES, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 13-04-2010
Appeal Filed By Department
Order Result Allowed
Bench Allotted K
Tribunal Order Date 13-04-2010
Date Of Final Hearing 07-04-2010
Next Hearing Date 07-04-2010
Assessment Year 2003-2004
Appeal Filed On 14-11-2007
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH K MUMBAI BEFORE SHRI SHRI A.L. GEHLOT A.M. & SMT. ASHA VIJ AYRAGHAVAN J.M. ITA NO. 6867/M/2007 ASSESSMENT YEAR: 2003-04 ASSTT. COMMISSIONER OF INCOME-TAX APPELLANT 23(3) 4 TH FLOOR C-10 PRATYAKSHAKAR BHAVAN BANDRA (E) MUMBAI 400 051 VS. M/S SIMPLEX INDUSTRIES RESPONDENT GALA INDUSTRIAL ESTATE SHED NO. 14 DUMPING ROAD MULUND (W) MUMBAI - 80 (PAN AAGFS4488N) APPELLANT BY : M/MR. T.T. JACOB/AMOL KAMAT/ S.S. RANA RESPONDENT BY : MR. SAMEER G. DALAL ORDER PER A.L. GEHLOT A.M.: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER OF CIT(A)-XXIII MUMBAI PASSED ON 17 TH SEPTEMBER 2007 FOR THE ASSESSMENT YEAR 2003-04 WHEREIN THE REVENUE HAS RAI SED THE FOLLOWING GROUNDS OF APPEAL:- ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW THE LD. CIT(A) ERRED IN DIRECTING THE AO TO RECOMPUTED DEDU CTION U/S 80 HHC BY GRANTING THE SAME ON TOTAL PROFITS DERIVED B Y THE APPELLANT WITHOUT INCLUDING RECOVERY ON ACCOUNT OF SALES ALONG WITH SALES TAX THEREON OF SCRAP IN THE TOTAL TURNOV ER DEFINED IN EXPLANATION (BA) OF SECTION 80 HHC OF IT ACT. 2. AT THE TIME OF HEARING THE LEARNED REPRESENTATI VES OF THE PARTIES SUBMITTED THAT THE ISSUE RELATING TO CALCULATE DEDU CTION U/S 80 HHC IN RESPECT OF SCRAP HAS BEEN DECIDED BY THE ITAT IN ASSESSEES OWN ITA NO. 6867/M/07 M/S SIMPLEX INDUSTRIES 2 CASE FOR AY 2001-02 VIDE ITA NO. 4844/MUM/2004 ORDE R DATED 30 TH NOVEMBER 2007 WHEREIN THE ITAT HELD AS UNDER:- 4SIMILAR IS THE DECISION IN THE CASE OF JAGRA ON EXPORTS. THE ISSUE IN QUESTION IS AS TO HOW TO ARRI VE AT THE COST OF RAW MATERIAL. THE AMENDMENT TO SECTION 80HHC(3) WIT H EFFECT FROM 1.4.1992 IN OUR CONSIDERED OPINION DOES NOT AFFECT THE BINDING PRECEDENCE OF THESE TWO DECISIONS OF THE HO NBLE TRIBUNAL. THUS WE DIRECT THE AO TO REDUCE NOT ONLY THE TURNOVER BY THE AMOUNT OF RECEIPTS GENERATED FROM SALES OF S CRAP BUT ALSO TO REDUCE THE COST OF RAW MATERIAL TO THAT EXTENT A ND RE-COMPUTE THE DEDUCTION U/S 80 HHC. 3. SINCE THE FACTS AND GROUNDS RAISED IN THIS APPEA L ARE IDENTICAL TO THAT OF AY 2001-02 WHICH HAS BEEN DECIDED BY TH E ITAT WE RESPECTFULLY FOLLOW THE ORDER OF ITAT IN THAT YEAR AND IN THE LIGHT OF THAT WE DIRECT TO THE AO TO RECOMPUTED THE DEDUCTIO N U/S 80 HHC IN ACCORDANCE WITH THE ABOVE DECISION OF ITAT AFTER P ROVIDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 4. IN THE RESULT THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES. PRONOUNCED ON THIS 13 TH DAY OF APRIL 2010. SD/- SD/- (ASHA VIJAYRAGHAVAN) (A.L. GEHL OT) JUDICIAL MEMBER ACCOUNTAN T MEMBER DATED: 13 TH APRIL 2010. COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) CONCERNED. 4) THE CIT CONCERNED. 5) THE DEPARTMENTAL REPRESENTATIVE K BENCH I.T .A.T. MUMBAI. BY ORDER //TRUE COPY// ASST. REGISTRAR I.T.A.T. MUMBAI. KV ITA NO. 6867/M/07 M/S SIMPLEX INDUSTRIES 3 S.NO. DESCRIPTION DATE INTLS 1. DRAFT DICTATED ON 7.4.10 SR.P.S./P.S 2. DRAFT PLACED BEFORE AUTHOR 8`.4.10 SR.P.S/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.P.S./PS SR.P.S./P.S 6. KEPT FOR PRONOUNCEMENT ON SR. P.S./P.S. 7. FILE SENT TO THE BENCH CLERK SR.P.S./P.S 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER