Income Tax Appellate Tribunal - Delhi
Jakson And Co., New Delhi vs Assessee on 6 January, 2016
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH: 'D' NEW DELHI
BEFORE SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER
AND
SMT. BEENA A. PILLAI, JUDICIAL MEMBER
I.T.A .No.350/DEL/2014
ASSESSMENT YEAR-2010-11
Jakson and Co. ACIT,
47, G.B. Road, Central Circle-25,
New Delhi-110006 vs New Delhi.
(PAN: AAAFJ441N)
(Appellant) (Respondent)
Appellant by Shri Niren Gupta, CA
Respondent Shri Raman Kant
by Garg, Sr.DR
Date of Hearing 06.01.2016
Date of Pronouncement 06.01.2016
ORDER
PER BEENA A. PILLAI, JM
This appeal by the assessee is directed against the order of learned CIT(A)-I, New Delhi dated 05.12.2013 for the AY 2010-11 on the following grounds of appeal:-
"1. That the C1T (A) on wrong interpretation of Sec 153 A has erred in confirming the additions made by A.O. which are not based on any material found in the search or concealed income. That the addition not being sustainable in law be deleted.
2. (a) That the CIT(A) has erred in confirming the disallowance U/S 80IB in respect of scrap sales I.T.A.No.350/Del/2014 Assessment year 2010-11 calculated at Rs. 450825, contrary to provisions of law.
(b) That it may be held that sale of scrap generated in the manufacturing process is profit and gains derived from the industrial undertaking entitled to deduction u/s 801B."
2. Ground No.1 of the assessee's appeal is against the validity of initiation of proceedings under Section 153A of the Income-tax Act, 1961. However, no specific arguments were advanced at the time of hearing before us against the validity of the issue of notice under Section 153A. We, therefore, treat ground No.1 as not pressed and, accordingly, reject the same.
3. Ground No. 2 of the assessee's appeal is with regard to the claim of deduction under Section 80IB in respect of scrap sales. It is stated by the learned counsel that during the years under consideration, the Assessing Officer allowed deduction under Section 80IB but while computing the amount, he excluded the scrap sales from the profit of the industrial undertaking. He stated that the issue is now covered in favour of the assessee by the decision of Hon'ble Jurisdictional High Court in the case of CIT Vs. Sadhu Forging Ltd. - [2011] 336 ITR 444 (Delhi). It is further submitted by the ld.AR that this Tribunal in assessee's own case have considered this issue on identical facts for assessment year 2006-07, 2007-08,2008-09 and 2009-10 in ITA 2 I.T.A.No.350/Del/2014 Assessment year 2010-11 nos. 6182, 6183/Del/2013 and 1238, 1239/Del/2013 vide orders dated 20.12.2013 and 02.06.2015 respectively. Copies of the said orders has been placed on record before us.
4. Learned DR, on the other hand, relied upon the orders of authorities below and stated that the facts of the assessee's case are different than the facts before the Hon'ble Jurisdictional High Court in the case of Sadhu Forging Ltd. (supra).
5. We have carefully considered the arguments of both the sides and perused the material placed before us. After considering the arguments of both the sides and the facts of the case, we agree with the contention of the learned counsel for the assessee that the issue is covered in favour of the assessee by the decision of Hon'ble Jurisdictional High Court in the case of Sadhu Forging Ltd. (supra), wherein their Lordships of Jurisdictional High Court held as under:-
"The receipts from sale of scrap being part and parcel of the activity and being proximate thereto would also be within the ambit of gains derived from the industrial undertaking for the purpose of computing deduction under section 80- IB."
6. Respectfully following the above decision of Hon'ble Jurisdictional High Court, and the orders passed by this Tribunal in assessee's own case for A.Y 2006-07, 2007-08,2008-09 and 3 I.T.A.No.350/Del/2014 Assessment year 2010-11 2009-10, we direct the Assessing Officer to compute the deduction under Section 80IB after taking into account the scrap sales.
7. In the result, the appeal of the assessee is partly allowed.
Order pronounced in the open court on 06.01.2016 Sd/- Sd/-
(S.V. MEHROTRA) (BEENA A. PILLAI)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated:06th JANUARY 2016
'GS'
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT(A)
4. CIT
5. DR
Asstt. Registrar
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