JBF INDUSTRIES LTD, v. DCIT 4(2),

MA 632/MUM/2010 | 1998-1999
Pronouncement Date: 22-12-2010 | Result: Allowed

Appeal Details

RSA Number 63219924 RSA 2010
Assessee PAN AAACJ2575J
Bench Mumbai
Appeal Number MA 632/MUM/2010
Duration Of Justice 1 month(s) 27 day(s)
Appellant JBF INDUSTRIES LTD,
Respondent DCIT 4(2),
Appeal Type Miscellaneous Application
Pronouncement Date 22-12-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted J
Tribunal Order Date 22-12-2010
Assessment Year 1998-1999
Appeal Filed On 26-10-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL 'J' BENCH MUMBAI BEFORE SHRI D.K. AGARWAL JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH ACCOUNTANT MEMBER MA NO. 632/MUM/2010 (ARISING OUT OF ITA NO. 2471/MUM/2009) (ASSESSMENT YEAR: 1998-99) M/S. JBF INDUSTRIES LTD. DCIT - 4(2) EXPRESS TOWER 8TH FLOOR ROOM NO. 642 6TH FLOOR NARIMAN POINT MUMBAI 400021 VS. AAYAKAR BHAVAN M.K. ROAD PAN - AAACJ 2575 J MUMBAI 400020 APPELLANT RESPONDENT APPELLANT BY: SHRI K. SHIVARAM & SHRI PARAS SALVA RESPONDENT BY: SHRI SHRAVAN KUMAR O R D E R PER B. RAMAKOTAIAH A.M. THIS IS A MISCELLANEOUS APPLICATION BY THE ASSESSEE AGAINST THE ORDER OF THE ITAT IN ITA NOS. 2471 & 1874/MUM/2009. 2. THE ISSUE IN THE APPEAL BY THE REVENUE IN ITA NO. 2471/MUM/2009 WAS WITH REFERENCE TO THE DIRECTION OF THE CIT(A) I N COMPUTING DEDUCTION UNDER SECTION 115JB SEPARATELY FOR DEDUCTION UNDER SECTION 80IA CONSIDERING ONLY THE DEPRECIATION CALCULATED AS PER COMPANIES ACT. IT WAS THE SUBMISSION BY THE ASSESSEE THAT IN THE EARLIER TWO YEARS THE ITAT HAS ALLOWED THE CLAIM OF THE ASSESSEE THAT THE DEDUCTIO N UNDER SECTION 80IA IS TO BE RECALCULATED ON THE BOOK PROFITS ONLY AND DEPREC IATION FOR THAT PURPOSE HAS TO BE CONSIDERED UNDER COMPANIES ACT AND NOT UN DER INCOME TAX ACT. HOWEVER IN THE APPEAL THIS ASPECT WAS RE-EXAMINED BY THE ITAT FOLLOWING THE DECISION OF THE JURISDICTIONAL HIGH COURT IN TH E CASE OF AJANTA PHARMA 223 CTR 441 AND RELYING ON THE PRINCIPLES ESTABLISH ED THEREIN THE ITAT HELD THAT THE DEDUCTION UNDER SECTION 80IA AND 80IB ARE ALSO TO BE CONSIDERED AS APPLICABLE UNDER THE NORMAL PROVISION S OF THE ACT UNDER SECTION 115JA AND 115JB AS WELL. WITH THIS DIRECTIO N THE MATTER WAS RESTORED BACK TO THE A.O. TO REWORK OUT THE DEDUCTI ON ACCORDINGLY. MA NO. 632/MUM/2010 2 3. IT WAS THE CONTENTION OF THE ASSESSEE THAT THE JUDG MENT OF THE HON'BLE BOMBAY HIGH COURT WAS NOT APPROVED BY THE HON'BLE S UPREME COURT AND IN THE CASE OF AJANTA PHARMA LTD 327 ITR 305 AND ACCOR DINGLY THE DIRECTIONS GIVEN IN THE APPEAL REQUIRE MODIFICATION. 4. WE HAVE CONSIDERED THE ISSUE. SINCE THE ORDER OF TH E HON'BLE BOMBAY HIGH COURT EARLIER RELIED UPON WAS REVERSED BY THE HON'BLE SUPREME COURT THE DIRECTIONS TO THE A.O. ARE TO BE MODIFIED ACCOR DINGLY. IN VIEW OF THIS THE DIRECTION OF THE ITAT IN THE ABOVE SAID APPEAL IS I N PARA 14 HAS TO BE MODIFIED AS THE A.O. IS DIRECTED TO REWORK OUT THE DEDUCTION KEEPING IN VIEW THE PRINCIPLES ESTABLISHED BY THE HON'BLE SUPREME C OURT IN THE CASE OF AJANTA PHARMA LTD 327 ITR 305(SC) 5. IN THE RESULT THE MISCELLANEOUS APPLICATION IS CON SIDERED ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND DECEMBER 2010. SD/- SD/- (D.K. AGARWAL) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI DATED: 22 ND DECEMBER 2010 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) IV MUMBAI 4. THE CIT IV MUMBAI CITY 5. THE DR J BENCH ITAT MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT MUMBAI BENCHES MUMBAI N.P.