M/s Ahuja Radios, New Delhi v. ACIT, New Delhi

CO 182/DEL/2010 | 2003-2004
Pronouncement Date: 29-10-2010 | Result: Allowed

Appeal Details

RSA Number 18220123 RSA 2010
Assessee PAN AAAFA4564D
Bench Delhi
Appeal Number CO 182/DEL/2010
Duration Of Justice 3 month(s) 20 day(s)
Appellant M/s Ahuja Radios, New Delhi
Respondent ACIT, New Delhi
Appeal Type Cross Objection
Pronouncement Date 29-10-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 29-10-2010
Date Of Final Hearing 25-10-2010
Next Hearing Date 25-10-2010
Assessment Year 2003-2004
Appeal Filed On 09-07-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A : NEW DELHI BEFORE SHRI G.E.VEERABHADRAPPA VICE PRESIDENT AND SHRI I.P.BANSAL JUDICIAL MEMBER ITA NOS.1739/DEL/2010 1740/DEL/2010 & 1741/DEL/201 0 ASSESSMENT YEARS : 2001 - 02 2002 - 03 & 2003 - 04 AS STT.COMMISSIONER OF INCOME TAX CIRCLE-30(1) NEW DELHI. VS. M/S AHUJA RADIOS 3778 DARYA GANJ NEW DELHI. PAN NO.AAAFA4564D. (APPELLANT) (RESPONDENT) CROSS OBJECTION NOS.180/DEL/2010 181/DEL/2010 & 182/DEL/2010 ASSESSMENT YEARS : 2001 - 02 2002 - 03 & 2003 - 04 M/S AHUJA RADIOS 3778 DARYA GANJ NEW DELHI. PAN NO.AAAFA4564D. VS. ASSTT.COMMISSIONER OF INCOME TAX CIRCLE-30(1) NEW DELHI. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI ASHOK PANDEY CIT - DR. ASSESSEE BY : SHR I R.K.MEHRA CA WITH SHRI MANISH KUMAR ADVOCATE. ORDER PER I.P.BANSAL : THESE APPEALS ARE FILED BY THE DEPARTMENT AND CROS S-OBJECTIONS BY THE ASSESSEE. THEY ARE DIRECTED AGAINST THREE S EPARATE ORDERS OF CIT(A) DATED 11.2.2010 AND 12.2.2010 IN RESPECT OF ASSESSMENT YEARS 2001-02 2002-03 & 2003-04 RESPECTIVELY. 2. GROUNDS OF APPEALS AS WELL AS CROSS-OBJECTIONS A RE IDENTICAL IN RESPECT OF EACH OF THE APPEAL AND THEY ARE AS FOLLO WS:- GROUND RAISED BY THE REVENUE :- IN THE FACTS AND THE CIRCUMSTANCES OF THE CASE TH E LD.CIT(A) HAS ERRED IN DELETING TO AO TO COMPUTE TH E ITA-1739/D/2010 & OTHERS 2 DEDUCTION U/S 80HHC IN CONFORMITY WITH THE DECISION OF SPECIAL BENCH OF HONBLE ITAT IN THE CASE OF TOPMAN EXPORT VS. INCOME TAX OFFICER (2009-10) 33 SOT 337 (MUM)SB DATED 11.8.2009. GROUNDS RAISED BY THE ASSESSEE :- 1. THE LD.CIT(A) ERRED IN DIRECTING THE AO TO CALC ULATE THE DEDUCTION U/S 80HHC WITH RESPECT TO DEPB AS PER THE DECISION OF THE ITAT MUMBAI (SPECIAL BENCH) IN THE CASE OF TOPMAN EXPORT V/S ITO 33 SOT 337 AS THE DECISION O F TOPMAN EXPORT HAS BEEN REVERSED BY THE HONBLE MUMB AI HIGH COURT. 2. THE LD.CIT(A) FAILED TO APPRECIATE THAT THE METH OD OF ACCOUNTING FOLLOWED BY THE ASSESSEE FOR ACCOUNTING THE DEPB ON UTILIZATION/SALE BASIS CONSISTENTLY OVER TH E PREVIOUS YEARS AND WHICH IS IN CONFORMITY OF ACCOUN TING STANDARD 9 BE ALLOWED. 3. SO AS IT CAN BE SEEN FROM THE GROUNDS OF APPEALS AND THE CROSS- OBJECTIONS THE ISSUE RAISED IS ONE I.E. THE TREATM ENT TO DEPB FOR THE COMPUTATION OF DEDUCTION U/S 80HHC. ON THE BASIS O F DECISION OF SPECIAL BENCH IN THE CASE OF TOPMAN EXPORTS 33 SO T 337 LEARNED CIT(A) HAS DECIDED THIS ISSUE IN FAVOUR OF THE ASSE SSEE FOR WHICH THE REVENUE HAS RAISED GRIEVANCE AS PER GROUNDS OF APPE AL DESCRIBED AS ABOVE AND CROSS-OBJECTIONS ARE SUPPORTING THE ORDER OF COMMISSIONER. 4. DURING THE COURSE OF HEARING IT WAS POINTED OUT BY THE LEARNED DR THAT THE DECISION IN THE CASE OF TOPMAN EXPORTS (SUPRA) HAS BEEN REVERSED BY THE HON'BLE BOMBAY HIGH COURT IN THE CA SE OF KALPATARU COLOURS & CHEMICALS 233 CTR 313 AND HENCE THE OR DER OF CIT(A) IS NOT AS PER LAW AS THE SPECIAL BENCH DECISION HAS BE EN OVERRULED BY THE AFOREMENTIONED DECISION OF BOMBAY HIGH COURT. THE ASSESSEE ALSO IN THE WRITTEN SUBMISSION HAS REFERRED TO THE ORDER OF HON'BLE BOMBAY HIGH COURT. IT WAS THE CONTENTION OF REVENUE THAT THE MATTER SHOULD BE RESTORED BACK TO THE FILE OF THE AO WITH A DIREC TION TO RECOMPUTE DEDUCTION U/S 80HHC IN VIEW OF THE DECISION OF THE HON'BLE BOMBAY ITA-1739/D/2010 & OTHERS 3 HIGH COURT IN THE CASE OF KALPATARU COLOURS & CHEMI CALS (SUPRA). HOWEVER IT WAS THE CONTENTION OF THE ASSESSEE THAT IN VIEW OF CONSISTENCY OF THE TREATMENT GIVEN BY THE ASSESSEE IN ITS ACCOUNTS FOR DEPB AND IN VIEW OF THE ACCOUNTING STANDARD-9 THE COMPUTATION OF DEDUCTION SHOULD BE MADE. 5. WE HAVE HEARD BOTH THE PARTIES ON THIS ISSUE. W E FIND SUBSTANCE IN THE ARGUMENTS OF THE LEARNED DR THAT THE DEDUCTI ON U/S 80HHC IS REQUIRED TO BE RECOMPUTED IN THE LIGHT OF THE DECIS ION OF HON'BLE BOMBAY HIGH COURT IN THE CASE OF KALPATARU COLOURS & CHEMICALS (SUPRA) SINCE THE DECISION ON WHICH THE LEARNED CI T(A) HAS PLACED RELIANCE I.E. IN THE CASE OF TOPMAN EXPORTS (SUPRA) HAS BEEN REVERSED. WE THEREFORE DIRECT THE AO TO RECOMPUTE DEDUCTION U/S 80HHC FOR ALL THESE YEARS KEEPING IN VIEW THE DECISION OF HON'BLE BOMBAY HIGH COURT IN THE CASE OF KALPATARU COLOURS & CHEMICALS (SUPRA ). THE AO IS ALSO DIRECTED TO GIVE REASONABLE OPPORTUNITY TO THE ASSE SSEE BEFORE ARRIVING AT THE FINAL AMOUNT OF DEDUCTION U/S 80HHC. WE DIR ECT ACCORDINGLY. FOR STATISTICAL PURPOSES THE APPEALS AS WELL AS CR OSS-OBJECTIONS BOTH ARE ALLOWED IN THE MANNER AFORESAID. DECISION PRONOUNCED IN THE OPEN COURT ON 29 TH OCTOBER 2010. SD/- SD/- (G.E.VEERABHADRAPPA) (I.P.BANSAL) VICE PRESIDENT JUDICIAL MEMBER DATED : 29.10.2010. VK. COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT ASSISTANT REGISTRAR ITA-1739/D/2010 & OTHERS 4