Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: cpt :: VAT Audit :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: list of goods taxed at 4% :: TDS :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: form 3cd
 
 
From the Courts »
  Vatsala Shenoy vs. JCIT (Supreme Court)
  Vatsala Shenoy vs. JCIT (Supreme Court)
 M.K.Overseas Pvt. Ltd. Vs. Pr.Commissioner Of Income Tax-06
 Arshia Ahmed Qureshi Vs. Pr. Commissioner Of Income Tax-21
 CHAUDHARY SKIN TRADING COMPANY Vs. PR. COMMISSIONER OF INCOME TAX-21
  Sushila Devi vs. CIT (Delhi High Court)
  Vatsala Shenoy vs. JCIT (Supreme Court)
 Deputy Director Of Income Tax Vs. Virage Logic International
 Commissioner Of Income Tax-3 International Taxation Vs. Virage Logic International India
 Pr. Commissioner Of Income Tax-06 Vs. Moderate Leasing And Capital Services Pvt. Ltd.
 ITO vs. Vikram A. Pradhan (ITAT Mumbai)

ITAT order in the case of Vipin Sardana
June, 21st 2006

IN THE INCOME TAX APPELLATE TRIBUNAL

DELHI BENCHES, G NEW DELHI

 

BEFORE SHRI N.S.SAINI  & SHRI SALIL KAPOOR

ITA No.5174/Del/2004

Assessment Year : 2001-02

 

ACIT                                                                           Shri Vipin Sardana Prop.

Circle, Panipat                                      Vs                    M/s Fashion Group International

                                                                                    Village Ugrakheri, Panipat

 

(Appellant)                                                                               (Respondent)

 

Appellant by : Shri S.K.Gupta, DR

Respondent by : Shri Ved Jain & Rano Jain CA

 

ORDER

PER BENCH :

 

1.                  This is an appeal filed by revenue against the order of CIT(A) dated 27th September, 2004.

2.                  The only ground of appeal taken by the revenue is that the learned CIT(A) has erred in allowing deduction U/s 80IB on the amount of duty drawback of Rs.84,802/-.

3.                  At the time of hearing, the learned AR of the assessee filed before us copy of the order of the Delhi Bench of the Tribunal in the case of ACIT Circle Panipat Vs Anand International, Panipat wherein order dated 13th May, 2005 on the similar issue the appeal of the revenue was dismissed and the issue was decided in favour of the assessee. While doing so the Tribunal observed to quote as under :-

 

                  Now both the assessee and the revenue are in appeal before the Tribunal .  I have already disposed off the appeal of the assessee against the assessee as the same is covered by the decision of the Supreme Court in the case of Sterling Food.  Regarding the appeal of the department, the counsel of the assessee who appeared before the Tribunal stated that the issue is squarely covered by the latest decision of the Honourable Gujarat High Court in the case of  CIT VS India Gelatine and Chemicals Ltd. 194 CTR 492.  The copy of the order was also filed.  On the other hand, the learned DR placed reliance on the order of the A.O.  It was further submitted that the issue is covered by the decisions of the Madras High Court in the case of   CIT VS Jameel Leathers 246 ITR 97 and CIT VS Vishwanathan & Co. 261 ITR 737.  Ion reply, the counsel of the assessee stated that both these decisions have taken into consideration by the Honble Gujarat High Court while deciding the issue in favour of the assessee.

 

            After considering the order of CIT(A) and Honble Gujarat High Court I find that the order of CIT(A) is liable to be sustained on this issue.  The CIT(A)  has categorically held that the duty drawback has a direct link with the business activity of industrial undertaking.  Therefore, deduction U/s 80-IB is allowable.  Similar issue was before the Honble Gujarat High Court in the case of CIT VS India Gelatine and Chemicals Ltd. (supra) and the Honble High Court has also held that duty drawback is allowable.  Therefore, respectfully following the decision of the Honble Gujarat High Court, I confirm the order of CIT(A).

 

4.                   The learned DR relied on the order of the A.O.  The learned DR relied on the order of the Honble High Court in the case of CIT Vs Ritesh Industries Ltd. reported in 142 Taxman 551 (Delhi) wherein it was held that duty drawback cannot be regarded as profit or gain derived from an industrial undertaking so as to entitle the assessee deduction U/s 80-I.  Hence, it was his submission that the assessee was not entitled to deduction.

 

5.                  We have heard the rival submissions and perused the orders of both the lower authorities and the material available on record.  The learned AR of the assessee had submitted that the decision of the Honble Delhi High Court in the case of Ritesh Industries Ltd.(supra) is not applicable as the assessee is of Panipat and therefore falls under the jurisdiction of the Punjab and Haryana High Court.  Further it was submitted that the order of  the Tribunal in the case of Anand International(supra) was applicable as it was an assessee of Panipat.  Moreover, when there are conflicting judgements of different High Courts and no decision of the jurisdictional High Court is available on the issue, then it is an accepted proposition that the decision favouring the assessee should be followed.  For this reliance was placed on the decision of the apex court in CIT VS Vegetable Products Ltd. 88 ITR 192.  In our considered opinion therefore, the issue stands decided by the decision  of Delhi Bench of the Tribunal in the case of Anand International, Panipat(supra) wherein similar facts of the case it was held that deduction U/s 80-IB was allowable on duty drawback  as it has a direct link with the business activity of industrial undertaking.  Respectfully following the same we decide the issue in favour of the assessee and reject the ground of appeal of the revenue.

 

6.                  In the result, the appeal of the revenue is dismissed.

 

 

                                                                                                            (N.S.SAINI)

            (SALIL KAPOOR)                                                     Accountant Member

            Judicial Member

 

            NS

            Date :

            Copy forwarded to :

1.                  ACIT Circle, Panipat

2.                  Shri Vipin Sardana Prop. M/s Fashion Group International, Village, Uragheri, Panipat

3.                  CIT

4.                  CT(A)

5.                  DR

 

                                    True copy 

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions