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

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,

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.

The learned Commissioner (Appeals) also sustained such disallowance.

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.

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

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.

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