K MOHAN & CO. ( EXPOPRTS) (REGD) MUMBAI vs DCIT 17(3) MUMBAI

आयकर आयकर आयकर आयकर अपीलीय अपीलीय अपीलीय अपीलीय अिधकरण अिधकरण अिधकरण अिधकरण, मुंबई मुंबई मुंबई मुंबई यायपीठ यायपीठ यायपीठ यायपीठ ‘ए’ मुंबई मुंबई मुंबई मुंबई IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI ौी ौी ौी ौी जी जी जी जी.ई. वीरभिपा वीरभिपा वीरभिपा वीरभिपा, अय अय अय अय एवं एवं एवं एवं ौी ौी ौी ौी आय आय आय आय.पी पी पी पी. बंबंबंबंसल सल सल सल, याियक याियक याियक याियक सदःय सदःय सदःय सदःय केकेकेके सम सम सम सम BEFORE SHRI G.E.

VEERABHADRAPPA, PRESIDENT AND SHRI I.P.

BANSAL, JUDICIAL MEMBER आयकर अपील सं. / ITAs no.

2445/Mum./2011 (िनधा"रण वष" / Assessment Year : 2002–03) K.

Mohan & Co. (Exports) 6, Ishwar Bhavan “A” Road, Churchgate, Mumbai 400 020 ………….………. अपीलाथ% / Appellant बनाम v/s Dy.

Commissioner of Income Tax Circle–17(3), Piramal Chambers Lalbaug, Parel, Mumbai 400 012 ..…….………. ू'यथ% / Respondent ःथायी लेखा सं./ Permanent Account Number no.

AAAAK0022F िनधा")रती क+ ओर से / Assessee by : Mr.

Nitesh Joshi राजःव क+ ओर से / Revenue by : Mr.

Mayank Priyadarshi सुनवाई क+ तार-ख / Date of Hearing – 10.07.2012 आदेश घोषणा क+ तार-ख / Date of Order – 18/07/2012 आदेश आदेश आदेश आदेश / ORDER PER I.P.

BANSAL, J.M.

The present appeal preferred by the assessee, is directed against the impugned order of dated 19th January 2011, passed by the learned K.

Mohan & Co. (Exports) 2 Commissioner (Appeals)–XXIX, Mumbai, for assessment year 2002–03, on the following grounds:– “1.

The Learned Commissioner of income Tax (Appeals)-29, Mumbai, hereinafter referred to as the ‘CIT(Appeals)’, erred in holding that the re-opening of assessment is valid.

Your appellants submit that, on the facts and in the circumstances of their case, reopening of assessment by issuing notice dated 25-03- 2009 is invalid and is bad-in–law.

2.

Without prejudice to the ground of appeal no 1, it is submitted that, the CT(Appeals) erred in coming to the conclusion that the total receipts on sate of DEPB entitlements wilt be treated as income for the purposes of computing amount deductible u ductible u/s 8OHHC of the IT Act.

Your appellants submit that, on the facts and in the circumstances of their case, only profit on transfer of DEPB credits is required to be reduced u/s 28(iiid) for the purposes of computing deduction u/s 80HHC of the IT Act.” 2.

Apropos ground no.1, the learned Counsel for the assessee, before us, submitted that the learned Commissioner (Appeals) has decided this issue against the assessee following the judgment of Hon'ble Jurisdictional High Court in CIT v/s Kalpataru Colours and Chemicals, (2010) 328 ITR 451 (Bom.) vide which the decision of Mumbai Bench of the Tribunal in Topman Exports v/s ITO, [2009] 29 DTR 153 (Bom.), was reversed.

He submitted that now the Hon'ble Supreme Court in Topman Exports v/s CIT, Civil Appeal no.

1699 OF 2012 (arising out of SLP (C) no.

26558 of 2010), vide judgment dated 8th February 2012, has decided this issue in favour of the assessee.

There are following elements involved in the computation.

Duty draw–back ` 3,08,28,392 DEPB ` 1,11,32,954 Premium on transfer of DEPB ` 5,27,084 Sale of quota premium ` 1,12,70,634 EOU units ` 81,95,851 Non EOU Units ` 30,74,783 Total:– ` 5,37,59,064 K.

Mohan & Co. (Exports) 3 2.

Referring to the above figures, it was submitted by him that this issue may be restored to the file of Assessing Officer for re–computation of deduction under section 80HHC.

He also referred to the judgment of Hon’ble Gujarat High Court in Avani Exports & Ors. v/s CIT, judgment dated 2nd July 2012, and submitted that the Assessing Officer may be directed to take into consideration the said judgment also for computation of deduction under section 80HHC, as the same may have impact upon the deduction.

3.

On the other hand, it was submitted by the learned Departmental Representative that if the matter is being restored to the file of the Assessing Officer, then the Assessing Officer may be left with the option to re–compute the deduction as per law and deduction should not be restricted to a cted to a particular decision.

4.

We have carefully considered the rival contentions and the material placed before us.

Since the disallowance mainly has been confirmed by the learned Commissioner (Appeals) on the basis of the judgment of Hon'ble Jurisdictional High Court in Kalpataru Colours and Chemicals (supra), which have been reversed by the Hon'ble Supreme Court in Topman Exports (supra), we consider it just and proper to restore the issue to the file of Assessing Officer for re–computation of deduction under section 80HHC, in accordance with law and after providing adequate opportunity of hearing to the assessee.

5.

In view of the aforementioned restoration of the issue to the file of the Assessing Officer, the learned Counsel for the assessee submitted that ground no.1, may be disposed off being infructuous.

Consequently, this ground is dismissed being infructuous in view of the aforementioned directions.

K.

Mohan & Co. (Exports) 4 6. प)रणामतः िनधा")रती क+ अपील आंिशक ःवीकृत क+ जाती है । 6.

In the result, assessee’s appeal is partly allowed. आदेश क+ धोषणा खुले यायालय म6 7दनांकः 18/07/2012 को क+ गई । Order pronounced in the open Court on 18/07/2012 Sd/- जी जी जी जी.ई. वीरभिपा वीरभिपा वीरभिपा वीरभिपा अय अय अय अय G.E.

VEERABHADRAPPA PRESIDENT Sd/- आय आय आय आय.पी पी पी पी. बंबंबंबंसल सल सल सल याियक याियक याियक याियक सदःय सदःय सदःय सदःय I.P.

BANSAL JUDICIAL MEMBER मुंबई मुंबई मुंबई मुंबई MUMBAI, 7दनांक 7दनांक 7दनांक 7दनांक DATED: 18/07/2012 आदेश आदेश आदेश आदेश क+ क+ क+ क+ ूितिल9प ूितिल9प ूितिल9प ूितिल9प अमे9षत अमे9षत अमे9षत अमे9षत / Copy of the order forwarded to: (1) िनधा")रती / The Assessee; (2) राजःव / The Revenue; (3) आयकर आयु;(अपील) / The CIT(A); (4) आयकर आयु; / The CIT, Mumbai City concerned; (5) 9वभागीय ूितिनिध, आयकर अपीलीय अिधकरण, मुंबई / The DR, ITAT, Mumbai; (6) गाड" फाईल / Guard file. स'या9पत ूित / True Copy आदेशानुसार आदेशानुसार / By Order Pradeep J.

Chowdhury Sr. wdhury Sr.

Private Secretary उप उप उप उप / सहायक सहायक सहायक सहायक पंजीकार पंजीकार पंजीकार पंजीकार / (Dy./Asstt.

Registrar) आयकर आयकर आयकर आयकर अपीलीय अपीलीय अपीलीय अपीलीय अिधकरण अिधकरण अिधकरण अिधकरण, मुंबई / ITAT, Mumbai