KARISHMA EXPORTS, v. DCIT 14(3),

MA 540/MUM/2011 | 2001-2002
Pronouncement Date: 20-02-2012 | Result: Allowed

Appeal Details

RSA Number 54019924 RSA 2011
Assessee PAN AAAFK7189K
Bench Mumbai
Appeal Number MA 540/MUM/2011
Duration Of Justice 3 month(s) 3 day(s)
Appellant KARISHMA EXPORTS,
Respondent DCIT 14(3),
Appeal Type Miscellaneous Application
Pronouncement Date 20-02-2012
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 17-02-2012
Assessment Year 2001-2002
Appeal Filed On 16-11-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES A BENCH BEFORE SHRI D.K. AGARWAL J.M. AND SHRI RAJENDRA SINGH A.M. MA NO: 540/MUM/2011 ARISING OUT OF : ITA NO.1779/MUM/2010 ASSESSMENT YEAR : 2001-02 M/S. KARISHMA EXPORTS 37 RAMWADI KALBADEVI ROAD MUMBAI-400 002 PAN NO: AAAFK 7189 K THE DY. COMMISSIONER OF INCOME TAX -14(3) 6 TH FLOOR EARNEST HOUSE NARIMAN POINT MUMBAI-400 021. (APPLICANT) VS. (RESPONDENT) APPLICANT BY : SHRI VIJAY MEHTA RESPONDENT BY : SHRI JITENDRA YADAV DATE OF HEARING : 17.02.2012 DATE OF PRONOUNCEMENT : 17.02.2012 ORDER PER RAJENDRA SINGH (AM). THIS MISCELLANEOUS APPLICATION HAS BEEN FILED BY THE ASSE SSEE REQUESTING FOR RECALL/AMENDMENT OF THE ORDER DATED 23 .12.2012 OF THE TRIBUNAL IN ITA NO.1779/M/2010. IN THE SAID ORDER TH E TRIBUNAL HAD DECIDED THE APPEAL EXPARTE AND HAD HELD THAT THE ISSUE OF DEDUCTION UNDER SECTION 80HHC IN RELATION TO DEPB INCOME WAS COVERED BY THE JUDGMENT OF HONBLE HIGH COURT OF BOMBAY IN CASE OF KAL PATARU COLOURS & CHEMICALS (328 ITR 451) AND ACCORDINGLY HAD D IRECTED THE AO TO RE-COMPUTE DEDUCTION IN THE LIGHT OF THE SAID JU DGMENT. THE ASSESSEE THEREAFTER HAS FILED THE MISCELLANEOUS APPLICATION FOR RECALL OF THE ORDER. MA NO.540/M/2011 A.Y:01-02 2 2. AT THE TIME OF HEARING OF THE MISCELLANEOUS APPLICAT ION THE LD. AUTHORISED REPRESENTATIVE SUBMITTED THAT CIT(A) HAD DI RECTED THE AO TO COMPUTE DEDUCTION UNDER SECTION 80 HHC IN RELATION TO DEPB INCOME IN THE LIGHT OF THE DECISION OF THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF TOPMAN EXPORTS (318 ITR 87). THE SAID D ECISION HAD NOT BEEN UP HELD BY THE HONBLE HIGH COURT OF BOMBAY IN THE CASE OF KALPATARU COLOURS & CHEMICALS (SUPRA). HOWEVER RECENTL Y THE HON'BLE SUPREME COURT HAS UPHELD THE DECISION OF SPECIAL BENCH IN THE CASE OF TOPMAN EXPORTS (SUPRA) THUS REVERSING THE JUDGMENT OF BOMBAY HIGH COURT IN THE CASE OF KALPATARU COLOURS & CHEMICALS LTD. AS REPORTED IN (328 ITR 451) AND THEREFORE THE ORDER PASSED BY THE TRIBUNAL IS REQUIRED TO AMENDED. THE LD. DR ON THE OTHER HAND SUBMITTED THAT THE MATTER MAY BE RESTORED TO THE AO FOR RE-COMPUTATI ON OF INCOME IN THE LIGHT OF THE JUDGMENT OF HON'BLE SUPREME COURT ( SUPRA). 3. WE HAVE PERUSED THE RECORDS AND CONSIDERED THE RIVAL CONTENTIONS CAREFULLY. THE DISPUTE RAISED WAS REGARDING COMPUTATION OF DEDUCTION UNDER SECTION 80 HHC IN RESPECT TO DEPB INCOME . CIT(A) DIRECTED THE AO TO COMPUTE DEDUCTION IN THE LIGHT OF T HE DECISION OF THE SPECIAL BENCH IN THE CASE OF TOPMAN EXPORTS (SUPRA). HOWE VER THE SAID DECISION OF THE TRIBUNAL WAS NOT UP HELD BY THE HO NBLE BOMBAY HIGH COURT IN THE CASE OF KALPATARU COLOURS & & CHEMI CALS LTD. (SUPRA) AND THEREFORE THE TRIBUNAL HAD DIRECTED THE AO TO RE-COMPUTE THE DEDUCTION IN THE LIGHT OF THE SAID JUDGMENT. NOW SINCE THE DECISION OF THE SPECIAL BENCH OF THE TRIBUNAL IN THE CA SE OF TOPMAN EXPORTS (SUPRA) HAS BEEN UPHELD BY THE HON'BLE SUPREME COURT IN APPEAL NO.1699 OF 2012 ARISING OUT OF SLP(C) NO.2655 8 OF 2010 THE DEDUCTION HAS TO BE COMPUTED IN THE LIGHT OF THE DECISIO N OF THE SPECIAL BENCH. THE CIT(A) HAS ALSO DIRECTED THE AO TO RE-COMPU TE THE MA NO.540/M/2011 A.Y:01-02 3 DEDUCTION IN THE LIGHT OF THE DECISION OF THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF TOPMAN EXPORTS (SUPRA) AND THE REFORE THE ORDER OF CIT(A) IS REQUIRED TO BE UPHELD. WE ACCORDIN GLY AMEND THE ORDER DATED 23.12.2012 OF THE TRIBUNAL IN ITA NO.17 79/M/2010 BY DIRECTING THE AO TO RE-COMPUTE THE DEDUCTION IN THE LI GHT OF THE DECISION IN THE CASE OF TOPMAN EXPORTS (SUPRA). THE ORD ER OF CIT(A) IS THUS UPHELD AND THE APPEAL OF THE REVENUE IS DISMISSED ON THIS POINT. 4. IN THE RESULT MISCELLANEOUS APPLICATION FILED BY TH E ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 17.02.2012. SD/- SD/- (D.K. AGARWAL) ( RAJENDRA SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI DATED: 17.2.2012. JV. COPY TO: THE APPLICANT THE RESPONDENT THE CIT CONCERNED MUMBAI THE CIT(A) CONCERNED MUMBAI THE DR BENCH TRUE COPY BY ORDER DY/ASSTT. REGISTRAR ITAT MUMBAI.