Sri Polisetty Somasundaram, Guntur v. The ACIT, Circle-2(1)., Guntur

ITA 96/VIZ/2008 | 2003-2004
Pronouncement Date: 05-10-2010 | Result: Allowed

Appeal Details

RSA Number 9625314 RSA 2008
Assessee PAN AACFP7251J
Bench Visakhapatnam
Appeal Number ITA 96/VIZ/2008
Duration Of Justice 2 year(s) 8 month(s) 4 day(s)
Appellant Sri Polisetty Somasundaram, Guntur
Respondent The ACIT, Circle-2(1)., Guntur
Appeal Type Income Tax Appeal
Pronouncement Date 05-10-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 05-10-2010
Date Of Final Hearing 30-09-2010
Next Hearing Date 30-09-2010
Assessment Year 2003-2004
Appeal Filed On 01-02-2008
Judgment Text
ITA 146 96 & 176 OF 2008 POLISETTY SOMASUNDARAM GUN TUR PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER ITA NO.146 & 96 /VIZAG/2008 ASSESSMENT YEARS: 1999-2000 & 2003-04 POLISETTY SOMASUNDARM GUNTUR VS. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-2(1) GUNTUR (APPELLANT) PAN NO: AACFP 7251 J (RESPONDENT) ITA NO.176/VIZAG/2008 ASSESSMENT YEAR: 2004-05 ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-2(1) GUNTUR VS. POLISETTY SOMASUNDARM GUNTUR (APPELLANT) (APPELLANT) PAN NO: AACFP 7251 J ASSESSEE BY: SHRI U.L.N. SUDHAKAR ADVOCATE DEPARTMENT BY: SHRI T.L. PETER DR ORDER PER BENCH: ALL THESE THREE APPEALS ARE DIRECTED AGAINST THE OR DERS OF LEARNED CIT (A) GUNTUR. SINCE COMMON ISSUES ARE AGITATED IN THE SE APPEALS THEY WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS CO MMON ORDER FOR THE SAKE OF CONVENIENCE. 2. IN THE APPEALS RELATING TO ASSESSMENT YEARS 1999- 2000 AND 2003-04 FILED BY THE ASSESSEE THE TAXABILITY OF SALE OF DE PB RECEIPTS ARE BEING CONTESTED. THE SAID ISSUE HAS BEEN DECIDED BY HON'B LE BOMBAY HIGH COURT IN THE CASE OF CIT VS. KALPATARU COLOURS & CHEMICAL S BY REVERSING THE DECISION OF THE SPECIAL BENCH OF I.T.A.T IN THE CASE OF TOPMAN EXPORTS (318 ITR (AT) 87(MUM). BOTH THE PARTIES AGREED THAT THE ISSUE MAY BE SET ASIDE ITA 146 96 & 176 OF 2008 POLISETTY SOMASUNDARAM GUN TUR PAGE 2 OF 3 TO THE FILE OF THE ASSESSING OFFICER FOR CONSIDERAT ION OF THE SAME AFRESH IN ACCORDANCE WITH THE DECISION OF HON'BLE BOMBAY HIGH COURT REFERRED (SUPRA). ACCORDINGLY WE SET ASIDE THE ISSUE TO THE FILE OF THE ASSESSING OFFICER. 3. THE ONLY ISSUE URGED IN THE APPEAL RELATING TO ASSESSMENT YEAR 2004- 05 FILED BY THE REVENUE IS WHETHER THE GROSS INTERE ST/RENTAL RECEIPTS OR NET INTEREST/RENTAL RECEIPTS HAVE TO BE EXCLUDED FOR TH E PURPOSES OF COMPUTATION OF PROFITS OF BUSINESS WHILE COMPUTING DEDUCTION UNDER SECTION 80HHC OF THE ACT. WE NOTICE THAT THE LEARNED CIT (A) HAS FOL LOWED THE DECISION OF THE TRIBUNAL IN THE ASSESSEES OWN CASE IN ITA NO.719/V /2004 DATED 17-12- 2007 FOR ASSESSMENT YEAR 2002-03 AND HELD THAT 90% OF NET RECEIPTS HAVE TO BE EXCLUDED FROM THE PROFITS OF BUSINESS WHILE C OMPUTING DEDUCTION UNDER SECTION 80HHC. SINCE THE LEARNED CIT (A) HAS FOLLOWED THE DECISION OF THE TRIBUNAL WE DO NOT FIND ANY REASON TO INTERFER E WITH THE SAME. 4. IN THE APPEAL RELATING TO THE ASSESSMENT YEAR 200 3-04 FILED BY THE ASSESSEE IT IS URGED THAT THE LEARNED CIT (A) HAS ERRED IN HOLDING THAT 90% OF THE GROSS INTEREST/ RENTAL RECEIPTS HAVE TO BE E XCLUDED FROM THE PROFITS OF BUSINESS FOR THE PURPOSE OF COMPUTATION OF DEDUCTIO N UNDER SECTION 80HHC. IN THE EARLIER PARAGRAPH WE HAVE NOTICED THAT THE SA ID ISSUE HAS BEEN DECIDED BY THE TRIBUNAL IN THE ASSESSEES OWN CASE IN ITA NO.719/V/2004 DATED 17-12-2004 FOR THE ASSESSMENT YEAR 2002-03. IN VIEW OF THE ABOVE WE REVERSE THE ORDER OF THE LEARNED CIT (A) ON THIS ISSUE AND SET ASIDE THE MATTER TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO DECIDE THE ISSUE IN ACCORDANCE WITH THE DECISIONS RENDERED BY THE TRIBUNAL IN THE ASSESSEES OWN CASE. 5. IN THE APPEAL RELATING TO THE ASSESSMENT YEAR 199 9-2000 FILED BY THE ASSESSEE IT IS URGED THAT THE LEARNED CIT (A) HAS ERRED IN HOLDING THAT 90% OF THE GROSS AMOUNT OF INSURANCE CLAIM HAS TO BE EX CLUDED FROM THE PROFITS ITA 146 96 & 176 OF 2008 POLISETTY SOMASUNDARAM GUN TUR PAGE 3 OF 3 OF BUSINESS WHILE COMPUTING DEDUCTION UNDER SECTION 80HHC OF THE ACT. THE PLEA OF THE ASSESSEE IS THAT THE COST OF TOBACCO DE STROYED IN THE CYCLONE HAVE TO BE DEDUCTED FROM THE INSURANCE CLAIM AND ON LY THE NET INSURANCE CLAIM RECEIPTS HAS TO BE EXCLUDED FROM THE PROFITS OF BUSINESS. ACCORDING TO THE ASSESSEE THE SAID CLAIM IS AKIN TO THE CLAIM MA DE BY IT IN RESPECT OF INTEREST RECEIPTS. BOTH THE PARTIES AGREED THAT TH IS ISSUE MAY ALSO BE SET SIDE TO THE FILE OF THE ASSESSING OFFICER FOR CONSI DERATION OF THE SAME AFRESH IN ACCORDANCE WITH LAW. ACCORDINGLY WE SET ASIDE TH IS ISSUE ALSO TO THE FILE OF ASSESSING OFFICER. 6. IN THE RESULT THE APPEALS FILED BY THE ASSESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES AND THE APPEAL OF THE REVE NUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 5 TH OCTOBER 2010. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE: 05-10-2010 COPY TO 1 M/S POLISETTY SOMASUNDARAM D.NO.8-24-31 MANGALAG IRI ROAD GUNTUR 55001 2 THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE- 2(1) RAJKAMAL COMPLEX LAKSHMIPURAM GUNTUR 3 4. THE CIT GUNTUR THE CIT(A) GUNTUR 5 THE DR ITAT VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM