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Income Tax Appellate Tribunal - Mumbai

G Jawelcraft Ltd, Mumbai vs Department Of Income Tax on 30 November, 2015

आयकर अपील य अ धकरण "एक-सद य मामला" यायपीठ मुंबई म। IN THE INCOME TAX APPELLATE TRIBUNAL "SMC" BENCH, MUMBAI ी संजय अरोड़ा, लेखा सद य के सम ।

                       BEFORE SHRI SANJAY ARORA, AM

                   आयकर अपील सं./I.T.A. No. 2128/Mum/2015
                    ( नधारण वष / Assessment Year: 2011-12)
ITO-9(3)(3),                                G. Jwelcraft Ltd.
                 th
Room No. 471, 4 floor,               बनाम/ Unit No. 005, Block No.-2, Seepz
Aayakar Bhavan, M. K. Road,            Vs.  Andheri (E), Mumbai-400 096
Mumbai-400 020

थायी ले खा सं . /जीआइआर सं . /PAN/GIR No. AADCM 8811 H (अपीलाथ /Appellant) : ( यथ / Respondent) अपीलाथ क ओर से / Appellant by : Shri Vishwas Jadhav यथ क ओर से/Respondent by : Shri Apurva R. Shah सनु वाई क तार ख / : 30.11.2015 Date of Hearing घोषणा क तार ख / : 30.11.2015 Date of Pronouncement आदे श / O R D E R Per Sanjay Arora, A. M.:

This is an Appeal by the Revenue directed against the Order by the Commissioner of Income Tax (Appeals)-16, Mumbai ('CIT(A)' for short) dated 08.12.2014, partly allowing the Assessee's appeal contesting its assessment u/s.143(3) of the Income Tax Act, 1961 ('the Act' hereinafter) for the assessment year (A.Y.) 2011-12 vide order dated 14.8.2013.

2. The only issue in this appeal is if that the assessee's income, to the extent it is comprised of the profit from its Unit located in Special Economic Zone (SEZ), stands 2 ITA No. 2128/Mum/2015 (A.Y. 2011-12) ITO vs. G. Jwelcraft Ltd.

rightly exempt from the provisions of Chapter XII-B of the Act titled 'Special provisions relating to certain companies', seeking to tax book profit under specified circumstances. The assessee's income for the year was determined by the Assessing Officer (A.O.) at Rs.11.38 lacs. However, as a tax on the book profit u/s.115-JB (Rs.23.64 lacs) was higher, the A.O. levied tax there-under. The ld. CIT(A) allowed the assessee relief following the order by the Tribunal in its' own case for A.Y. 2009- 10 (in ITA No. 5087/Mum/2012 dated 14.11.2014). Aggrieved, the Revenue is in appeal.

3. Before the Bench, while the ld. Departmental Representative (DR) relied on the assessment order, the ld. Authorized Representative (AR), the assessee's counsel, would on that by the tribunal (supra), placing a copy of the same on record.

4. The parties have been heard, and the material on record perused.

The order by the tribunal in the assessee's case stands perused. Vide the same the Division Bench of this tribunal has followed the order by the co-ordinate bench in Genesys International Corporation Ltd. vs. Asst. CIT (in ITA No. 6903/Mum/2011 and 609/Mum/2012 dated 31.10.2012), also reproducing there-from at para 8 of its order. The Revenue's plea that the exception u/s.115JB(6) is available only in respect of the profit exempt u/s.10AA, and not that falling u/ss.10A and 10B of Chapter III of the Act, in view of clause (f) of Explanation 1 to section 115JB(2), stands also considered by the tribunal. The assessee's income, to the extent exempt u/s.10A, was accordingly held to be not subject to minimum profit tax u/s.115JB in view of section 115B(6) of the Act. Respectfully following the consistent view of the tribunal in the matter, the assessee's income for the year, to the extent it relates to the profit of its' SEZ unit, is liable to be exempt from book profit tax u/s.115JB(6) of the Act. The fact that the Revenue has carried the matter in appeal before the Hon'ble High Court would, in my view, be of no consequence as far as the decision on merits is concerned. I decide accordingly.

ITO vs. G. Jwelcraft Ltd.

5. In the result, the Revenue's appeal is dismissed.

प रणामतः राज व क अपील खा रज क जाती है ।

Order pronounced in the open court on November 30, 2015 Sd/-

(Sanjay Arora) लेखा सद य / Accountant Member मुंबई Mumbai; दनांक Dated : 30.11.2015 व. न.स./Roshani, Sr. PS आदे श क त ल प अ े षत/Copy of the Order forwarded to :

1. अपीलाथ / The Appellant

2. यथ / The Respondent

3. आयकर आयु त(अपील) / The CIT(A)

4. आयकर आयु त / CIT - concerned

5. वभागीय त न ध, आयकर अपील य अ धकरण, मंब ु ई / DR, ITAT, Mumbai

6. गाड फाईल / Guard File आदे शानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपील य अ धकरण, मुंबई / ITAT, Mumbai