The DCIT, Circle-1,, RAJKOT-GUJARAT v. M/s Royal Impex (India),, Jetpur

MA 33/RJT/2010 | 2003-2004
Pronouncement Date: 31-12-2010 | Result: Allowed

Appeal Details

RSA Number 3324924 RSA 2010
Assessee PAN AAEFR5521M
Bench Rajkot
Appeal Number MA 33/RJT/2010
Duration Of Justice 4 month(s) 29 day(s)
Appellant The DCIT, Circle-1,, RAJKOT-GUJARAT
Respondent M/s Royal Impex (India),, Jetpur
Appeal Type Miscellaneous Application
Pronouncement Date 31-12-2010
Appeal Filed By Department
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 31-12-2010
Date Of Final Hearing 24-12-2010
Next Hearing Date 24-12-2010
Assessment Year 2003-2004
Appeal Filed On 02-08-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH RAJKOT BEFORE SHRI A.L. GEHLOT (AM) AND SHRI D.T. GARASIA (JM) M.A. NO. 33/RJT/2010 (ASSESSMENT YEAR 2003-04) THE DY.CIT CIR.2 VS M/S ROYAL IMPEX (INDIA) RAJKOT 8-B NATIONAL HIGH WAY PEDHLA (JETPUR) PAN : AAEFR5521M (APPLICANT) (RESPONDENT) APPLICANT BY : SHRI AVINASH KUMAR RESPONDENT BY: NONE O R D E R A.L. GEHLOT : THIS MISCELLANEOUS APPLICATION IS FIL ED BY THE REVENUE. NONE IS PRESENT ON BEHALF OF THE ASSESSEE. WE PROCEEDED TO DECIDE THE MISCELLANEOUS APPLICATION ON MERIT. 2. THE ITAT VIDE ORDER DATED 07-07-2008 IN ITA NO. 188/RJT/2007 FOR ASSESSMENT YEAR 2003-04 WHILE DECIDING THE ISSUE FO LLOWING THE JUDGMENT OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF IND IAN GILLETIN & CHEMICAL UNIT 275 ITR 284 (GUJ) HAS HELD IN FAVOUR OF THE AS SESSEE TREATING THAT DEPB INCOME IS DERIVED FROM INDUSTRIAL UNDERTAKING. IT IS POINTED OUT IN THE MISCELLANEOUS APPLICATION THAT THE APEX COURT IN TH E CASE OF LIBERTY INDIA LTD VS CIT 317 ITR 218 (SC) HELD THAT DEPB / DUTY D RAW BACK ARE INCENTIVE WHICH FLOWS FROM THE SCHEME FRAMED BY THE CENTRAL GOVERNMENT THROUGH INCENTIVE PROFITS AND ARE NOT PROFIT DERIVE D FROM THE ELIGIBLE BUSINESS AND THEREFORE DEPB / DUTY DRAW BACK RECEI VED DO NOT FORM PART OF NET PROFIT OF THE INDUSTRIAL UNDERTAKING FOR THE PURPOSE OF DEDUCTION U/S 80IA / 80IB OF THE ACT. THE CONTENTION OF THE REVE NUE IS THAT THE JUDGMENT MA NO. 33/RJT/2010 2 OF THE JURISDICTIONAL HIGH COURT IN INDIAN GILLETIN & CHEMICAL UNIT (SUPRA) IS THUS IMPLIEDLY REVERSED BY THE APEX COURT AND THERE FORE THERE IS A MISTAKE APPARENT IN THE IMPUGNED ORDER OF THE TRIBUNAL. 3. AFTER HEARING THE LD.DR WE FIND THAT THE ITAT HA S DECIDED THE ISSUE FOLLOWING THE JUDGMENT OF HONBLE GUJARAT HIGH COUR T IN THE CASE OF INDIAN GILLETIN & CHEMICAL UNIT (SUPRA) WHICH HAS BEEN IMP LIEDLY REVERSED BY THE APEX COURT IN THE JUDGMENT OF LIBERTY INDIA LTD (SU PRA). IN THE LIGHT OF LAW LAID DOWN BY THE APEX COURT WE RECALL OUR ORDER DAT ED 07-07-2008. THE REGISTRY IS DIRECTED TO FIX THE CASE FOR HEARING IN DUE COURSE. 4. IN THE RESULT THE MISCELLANEOUS APPLICATION FIL ED BY THE REVENUE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 31-12-2010 SD/- SD/- (D.T. GARASIA) (A.L. GEHLOT) JUDICIAL MEMBER ACCOUNTANT MEMBER RAJKOT DT : 31 ST DECEMBER 2010 PK/- COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT(A)-I RAJKOT 4. THE CHIEF CIT RAJKOT 5. THE DR (TRUE COPY) BY ORDER ASSTT.REGISTRAR ITAT RAJKOT MA NO. 33/RJT/2010 3