PIONEER FOOD AND AGRO INDUSTRIES,MUMBAI vs. ITO 18(3)(2) (PRESENTLY, ACIT-22(2)), MUMBAI

PDF · subscribers
ITA 1454/MUM/2018Status: DisposedITAT Mumbai23 May 2018AY 2008-093 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the disallowance, following the Supreme Court's decision in Liberty India Ltd. and its own previous orders in the assessee's own case.

What were the facts?

The assessee claimed deduction under Section 80IB for profits from duty drawback, VKUY license, and exchange difference. The Assessing Officer and Commissioner (Appeals) disallowed this claim.

What were the issues?

Whether profits from duty drawback, VKUY license, and exchange difference are eligible for deduction under Section 80IB as profits derived from an industrial undertaking.

Which sections of the Income-tax Act were involved?

Section 80IB

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY & SHRI MANOJ KUMAR AGGARWAL

For Appellant: Ms. Mrugakshi K. Joshi
For Respondent: Ms. N. Hemalatha

Aforesaid appeal by the assessee is against order dated 26th December 2017, passed by the learned Commissioner (Appeals)–33, Mumbai, for the assessment year 2008–09.

2.

The only issue in dispute in the present appeal relates to disallowance of deduction claimed under section 80IB of the Income Tax Act, 1961 (for short “the Act”) amounting to ` 16,86,621,

2 Pioneer Food And Agro Industries representing the profit received from duty drawback, VKUY license and exchange difference.

3.

The Assessing Officer relying upon the decision of the Hon'ble Supreme Court in case of Liberty India Ltd. v/s CIT, [2009] 183 Taxman 349 (SC) held that, since, such income / profit do not form part of profit derived from eligible industrial undertaking, claim of deduction under section 80IB of the Act in respect of such income cannot be allowed.

4.

The learned Commissioner (Appeals) also sustained such disallowance.

5.

The learned Authorised Representative fairly submitted before us that the Hon'ble Supreme Court in case of M/s. Liberty India Ltd. (supra) has decided the issue against the assessee and following the said decision the Tribunal in assessee’s own case for assessment year 2009–10 and 2010–11 has decided the issue against the assessee. A copy of the order passed by the Co–ordinate Bench in and 6089/Mum./2013, dated 20th June 2016, was placed before the Bench.

6.

The learned Departmental Representative agreed with the aforesaid submissions of the assessee.

3 Pioneer Food And Agro Industries

7.

We have heard the parties and perused the materials on record. Keeping in view the aforesaid submissions made before us as well as the ratio laid down in the decision of the Hon'ble Supreme Court in case of Liberty India Ltd. (supra) and the decision of the Co–ordinate Bench in assessee’s own case cited supra, we uphold the order of the learned Commissioner (Appeals) by dismissing the ground raised.

8.

In the result, assessee’s appeal is dismissed. Order pronounced in the open Court on 23.05.2018

More judgments on Section 80IB

All 1,094 judgments and leading authorities on Section 80IB →

Recent GST High Court judgments

Search GST case law →