M/S. BIO- VET INDUSTRIES, MUMBAI v. THE ACIT 25(1), MUMBAI

CO 285/MUM/2007 | 2004-2005
Pronouncement Date: 25-02-2010 | Result: Dismissed

Appeal Details

RSA Number 28519923 RSA 2007
Assessee PAN AADFB3600L
Bench Mumbai
Appeal Number CO 285/MUM/2007
Duration Of Justice 2 year(s) 3 month(s) 11 day(s)
Appellant M/S. BIO- VET INDUSTRIES, MUMBAI
Respondent THE ACIT 25(1), MUMBAI
Appeal Type Cross Objection
Pronouncement Date 25-02-2010
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted Not Allotted
Tribunal Order Date 25-02-2010
Assessment Year 2004-2005
Appeal Filed On 14-11-2007
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B MUMBAI BEFORE SHRI R.S.SYAL AM AND SHRI R.S.PADVEKAR JM ITA NO.5328/MUM/2007 : ASST.YEAR 2004-2005 ITA NO.3890/MUM/2008 : ASST. YEAR 2005-2006 M/S.BIO-VET INDUSTRIES SHOP NO.9 B WING DEVKI NAGAR EKSAR ROAD BORIVALI (WEST) MUMBAI 400 103. PA NO.AADFB3600L VS. THE DY.COMMISSIONER OF INCOME-TAX CIRCLE 25 (1) MUMBAI. (APPELLANT) (RESPONDENT) ITA NO.5205/MUM/2007 : ASST.YEAR 2004-2005 THE DY.COMMISSIONER OF INCOME-TAX CIRCLE 25 (1) MUMBAI. VS. M/S.BIO-VET INDUSTRIES SHOP NO.9 B WING DEVKI NAGAR EKSAR ROAD BORIVALI (WEST) MUMBAI 400 103. (APPELLANT) (RESPONDENT) CO NO.285/MUM/2007 : ASST.YEAR 2004-2005 M/S.BIO-VET INDUSTRIES SHOP NO.9 B WING DEVKI NAGAR EKSAR ROAD BORIVALI (WEST) MUMBAI 400 103. VS. THE DY.COMMISSIONER OF INCOME-TAX CIRCLE 25 (1) MUMBAI. (CROSS OBJECTOR) (RESPONDENT) REVENUE BY : S/SHRI L.K.AGRAWAL S.S.RANA & PITAMBA R DAS ASSESSEE BY : SHRI S.N.DIVATIA O R D E R PER BENCH : THIS BATCH OF 4 APPEALS CONTAINS ONE APPEAL BY THE ASSESSEE FOR THE A.Y. 2004-2005 TWO APPEALS BY THE REVENUE FOR THE A.YS. 2004-2005 AND 2005-2006 AND ONE CROSS OBJECTIONS BY THE ASSESSEE FOR THE A .Y. 2004-2005. SINCE COMMON ISSUES ARE INVOLVED IN THESE APPEALS WE ARE THEREF ORE PROCEEDING TO DISPOSE THEM OFF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONV ENIENCE. ITA NOS.5328/M/07 & ORS. & CO. 285/M/07 M/S.BIO-VET INDUSTRIES. 2 ASSESSMENT YEAR 2004-2005 2. THE CROSS OBJECTION FILED BY THE ASSESSEE FOR T HIS YEAR WAS NOT PRESSED BY THE LEARNED A.R. THE SAME IS THEREFORE DISMISSED AS NOT PRESSED. 3. GROUND NO.1 OF THE ASSESSEES APPEAL IS AGAINST THE BIFURCATION OF ADMINISTRATIVE SELLING AND FINANCIAL EXPENSES IN U NITS I AND II FOR THE PURPOSES OF GRANTING DEDUCTION U/S 80IB OF THE ACT. GROUND NO.1 OF THE REVENUES APPEAL IS AGAINST THE DIRECTION OF THE LEARNED CIT(A) FOR ALL OWING DEDUCTION AT THE RATE OF 100% ON THE PROFITS OF UNIT-II BY TREATING IT AS A SEPARATE AND DISTINCT UNIT FROM THE EXISTING UNIT. BOTH THE SIDES ARE IN AGREEMENT THAT THE FACTS AND CIRCUMSTANCES OF THESE GROUNDS ARE MUTATIS MUTANDIS SIMILAR TO THOSE OF THE IMMEDIATELY PRECEDING YEAR I.E. A.Y. 2003-04 WHICH CAME UP FOR HEARING BEFORE US SIMULTANEOUS WITH THESE APPEALS. WE HAVE PASSED SE PARATE ORDER FOR THE AY 2003-04 IN ITA NOS. 5928 AND 6826/MUM/2006. FOLLOW ING THE VIEW TAKEN IN SUCH EARLIER YEAR WE DISMISS THE GROUND OF THE REVENUE AND THAT OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 4. GROUND NO.2 OF THE ASSESSEES APPEAL ABOUT THE N ON-GRANTING OF DEDUCTION U/S.80-IB IN RESPECT OF INTEREST INCOME OF RS.2 43 227 WAS RIGHTLY NOT PRESSED BY THE LEARNED A.R. IN VIEW OF THE JUDGEMENTS OF THE H ONBLE SUPREME COURT IN THE CASE OF PANDIAN CHEMICALS LTD. VS. CIT [(2003) 262 ITR 278 (SC)] AND LIBERTY INDIA VS. CIT [(2009) 317 ITR 218 9SC)] . 5. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED AND THAT OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ITA NOS.5328/M/07 & ORS. & CO. 285/M/07 M/S.BIO-VET INDUSTRIES. 3 ASSESSMENT YEAR 2005-2006 6. GROUND NO.1 IS AGAINST THE APPORTIONMENT OF ADM INISTRATIVE SELLING AND FINANCIAL EXPENSES BETWEEN UNITS I AND II OF THE AS SESSEE FOR THE PURPOSES OF DEDUCTION U/S 80IB. THERE IS CONSENSUS BETWEEN BOTH THE SIDES THAT THE FACTS AND CIRCUMSTANCES OF THIS GROUND ARE SIMILAR TO THOSE OF THE IMMEDIATELY PRECEDING YEAR. FOLLOWING THE VIEW TAKEN BY US IN EARLIER YEA RS THIS GROUND IS ALLOWED FOR STATISTICAL PURPOSES. 7. GROUND NO.2 IS AGAINST NOT ALLOWING OF DEDUCTION U/S.80-IB IN RESPECT OF INTEREST INCOME OF RS.26 52 707. THIS GROUND WAS NO T PRESSED BY THE LEARNED AR. THE SAME THEREFORE STANDS DISMISSED AS NOT PRESSE D. 8. IN THE RESULT THE APPEAL IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 25 TH DAY OF FEBRUARY 2010. SD/- SD/- ( R.S.PADVEKAR ) ( R.S.SYAL ) JUDICIAL MEMBER ACCOUNTANT ME MBER MUMBAI : 25 TH FEBRUARY 2010. DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A) XXV MUMBAI. 5. THE DR/ITAT MUMBAI. 6. GUARD FILE. ITA NOS.5328/M/07 & ORS. & CO. 285/M/07 M/S.BIO-VET INDUSTRIES. 4 TRUE COPY. BY ORDER ASSISTANT REGISTRAR ITAT MUMBAI. ITA NOS.5328/M/07 & ORS. & CO. 285/M/07 M/S.BIO-VET INDUSTRIES. 5 DATE INITIAL 1. DRAFT DICTATED ON 24.02.2010 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 2 5 .02.2010 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. FILE SENT TO THE BENCH CLERK SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 9. DATE OF DISPATCH OF ORDER. *