Cit v. Leather Tech

>.\\ *INTI-IEHIGI-ICOI,.IRTOFDELI-IIAThIEWDEL!-!I + )udgment Reserved on: 10 '02'201I Decision Delivered On: 18.02.20II

(1) trA 4O4/2OLO COMMISSIOI{ER OF II{COME TAX . ' . APPELLANT I\RJAN IMPEX PVT. [-TD. . . .RESPONDE]UT

(2) lrA 7OE/2OLO COMMISSIONER OF INCOME TAX . . . APPEI-LANT SPENTEX INDI,.ISTRIES LTD. . . .RESPOT{DEhNT ,i

(3) ITA 793/20L0 t COMMISSNONER OF II{COME TAX . , . APPEX-LANT PHlLco EXPoR,T5. ' ' 'R'ESPoNDENT I,

(4) trA e27l2O1"O COMMISSIONER, OF INCOME TAX ' . APPEI.LANT P!.III.CO EXPORTS ,RESPONDEhIT

(s) rrA Lo8o/2ox.o COMMISSIONER. OF INCOME TAX . . APPEI-LANT SPEI\ITEX INDUSTRIES [.TD. . .RESPONIDEhIT'

(6) rrA r.886/20L0 COMMISSIONER, OF INCOME TAX . APPELI.ANT NITIN KI,'MAR, SADI.I . .RESPONDENIT lrA No. ITA 40412010 & ors.connected matters Certify that the digital file and physical file have been compared and the digital data is as per the physical file and no page is missing. r . (7) ITA 1887/2OLO CCIMM]SSIONER OF INCOME TAX . . APPELLANT KAPOOR INDI.'5TRIES. . .RESPONDENT

(8) lrA L896/2OLO COMMISSIONER OF INICOME TAX ' . APPELLANT FI,JL KANT Jl-lA . . .RESPONDENT

(e) ITA L899/20L0 COMMISSIONER OF INCOME TAX . . ' APPELLANT' PAL ENTERPRISES . .RESPOhIDENIT

(L0) rrA L9s7l2OLO COMMISSIONER. OF INCOME TAX . . APPEI.LANT PRAVEEN INIDUSTRIES PVT. LTD. . .RESPONDEIVT

(11) rrA L9s8/2OLO COMMISSIONER, OF IIVCOME TAX . . . APPEI.LAIVT ZENELINI LEATHER WEAR, . .RESPONDENNT

(L2) rrA r.959/20L0 COMMISSIONER OF INICOME TAX . . . APPEI-LANT R,ICIIA APPARELS . .RESPONDETUT

(13) L960/20L0 COMMISSIONIER OF INCOME TAX . . . APPELI.ANT KAPOORIT\IDUSTRIES .,.RESPONDEFJT lrA No. ITA 40412010 & ors.connected matters

(14) lTA L980/20L0 COMMISSIONER OF INCOME TAX . ' APPELLAI\T A!-ltf.!A RADIOS .RESPONDENIT ( 15) trA 2O7 4|?OLO COMMISSIONER OF INCOME TAX . . APPEL!-ANT SI.IOREWALAOVERSEAS ...RESPONDENIT

(L6) ITA L4l20LL COMMISSIONER OF INCOME TAX . . APPEI.LAT{T SAI\IGEETAJAIN ...RESPONDEIUT

(L7) lrA Ls/20L1 COMMISSIOI{ER OF IIVCOME TAX . . APPEI.LANT I.EATI-IERTEChI ., 'RESPOIVDENIT

(18) lTA 67l20LL COMMISSIONER OF INCOME TAX . . APPELLAIUT , PUR,OLATOR INDIA LTD. . . .RESPONDENIT (LgI ITA L77IZOLL COMMISSIOhIER OF INCOME TAX . . APPEI-LAIUT EALDEV RAJ .IAGGI . . .RESPOIVDEIUT rA No. ITA 4O4|2OIO & ors.connected matters /) ,/ . (20) lrA L78/20XL COMMISSIONNER, OF IIUCOME TAX . . AFPELI.ANT INDUGi,.IPTA .. 'RESPONDEr{T

(21) lrA 18L/20LL COMMISSIONER OF INCOME TAX SANGEETA JA!N Qzl rrA L82|20LL COMMISSIOTUER OF INCOME TAX CLC CORPORATION (231 lrA L84/20LL COMMISSIONER OF INCOME TAX CLC CORPORAT'ION

(24) lTA n8s/201l COMMISSNONER OF INCOME TAX . a vlKAs KALRA (251 trA-L87I?ALL COMMISSIONER OF INICOME TAX AN|UJ GOEL .,RESPOIUDENIT Judgment Reserved on: I0.02.2011 Decision Delivered On: 18.O2.207I (26r trL 723nAA9 COMMISSIONER, OF INCOME TAX . . APPELN-ANT rA No. ITA 4O4i2OLO & ors.connected matters . . APPELLANT . . .RESPOIVDENIT . . APPELLAhIT . . .RESPONDEi{T . . APPEI-LANT . . .RESPONDENIT . . APPEI-I.ANT . . .RESPOhIDEhIT . . APPELLANIT .VERSUS PRIYAIUKA OVERSEAS P. I.TD. . . .RESPONDENT couNSEL FOR THE REVENUE: Mr, Kamal Sawhney, Mr. Abhishek Maratha, Ms. Suruchi Aggarwal, Mr. Anupam Tripathi'Sr' Standing Counsel with Mr. Amit Srivastava, Advocate. COUNSEL FORTHE ASSESSEES:Mr. Ajay Vohra, Advocate with Mr, l(avita Jha, Mr. Somnath Shukla, Mr. Prakash Kumar and Mr. Manish Kumar, Mr' O'P. Sapra, ,Mr' Amit Dayal, Mr. Pankaj Jain, Mr. D.K' Goyal, Mr' Vijay Nair and Mr. Manish Chaudhary, Dr. Rakesh Gupta, Advocate with Mr. Rl(. Aggarwal, Ms' Poonam Ahuja, Advocates' CORAM :- hloN'ELE MR. JLISTICE A.K. SIKRI HON',BLE MR. JUST'ICE M.l-. MEhlrA

¶1Whether Reporters of Local newspapers may be allowed to see the Judgment? To be referred to the Reporter or not? Whether the Judgment should be reported in the Digest? A,K. SIKRI, I.

¶1For orders, see ITA 12 of 20LI. FEtsRUARY ].8, 2O1.L, skb

2.

¶3M.L.MEI{TA) rn ruo. ITA 40412010 & ors.connected matters .(' I rl ! I i 'k !N TFIE l-[[G$-t CO[.[RT OF DEI.HI AT NEW DFLF{I

(1). ITA x2l20x4 COMMTSSIOruER @F IhICOME T'AX PARAMOI..INT IMPEX PVT. I.T'D"

(2) lTA 4o4l20r-q COMMISSIONIER OF IMICOME T'AX - AR.'AN| IMPEX PVT. !-T'D.

(3) ITA 708/20L0 COIVXMISSIONER, OF INCOME TAX SPEN'TEX IN D[,.!STRIE5 LT'D.

(4) ITA 793/20]LO . COMMISSIONER. OF INCOME TAX Phlil-co EXPoRTS.

(5) trA. 927|ZALA ', COMMISSXONIER OF IRICOME ''I|AX . Phlln-co EXPORTS

(6) rTA 1080/20XO COMMISSIONJER OF INICOME TAX SPENTEX ] NI DI.ISTRIES LTD.

(7) ITA L886/20].0 COMMISSIONXER OF INCOME TAX nANo. ITA I2|20II & ors.connected matters [t .:r 't I I Judgmint Reserved on: 10.02.20II Decision Delivered On: 18.02,2011 . . . APPELLAhIT . . RESPOIVDE[\IT . . . APPELLANT . RESPONIDENT . . APPELB.ANT . . .RESPOIUDENT . . . APPELI.ANT " " .RESPON{DEhIT . . APPEI-LANdT ..RESPONDENT . . APPELLAIVT ..RESPONIDENIT . APPE!-!.AhIT n',0 lT'l n! KIJ MAR S/\Dl-i

(8) rrA LE87/20LO coMMISStOnilER OF IIUCOME Tl\X KAPOOR IND!.!STRIE5.

(9) rTA 1896/2OLO COMMISSXONER OF INICOME TAX F[,.t[-KAIUT' j!-nA l-

(no) rrA x899/2010 COMMISSIONER OF INCOME TAX PA[. ,E[\ITERPRXSES

(1L),lrA X9s7/2OL0 COMMISSIONIER OF IRICOME T'AX PRAVEEIU [TVD[.IST'RIE5 PVT. [-TD,

(x2) lTA L9s8/201-O COMMISSIONNER OF INXCOME TAX ZEI\! EI-[N I I.EATI-ilER WEAR

(L3) rTA L9s9/20X0 COMMISSXONER OF INUCOME TAX RICh[A APPARE[.5 ( 14) ].960/20L0 lrA No. ITA l2l2OII & ors.connected matters I I )l ..RESPONDEIUT . . APPEI.LANiT ..REsPO]\[DENT . . APPELI-ANIT . . .RESPONDENT . . . APPEI.LANT ..RESPOI\IDEIUT . . APPET!-AIVT ..RESPOI{DENT . . . APPE[-[-ANT' ..RESPOI{DE]UT . . . APPELLAIUT ..RESPOIVDEIUT C.OMMISSIONIER OF IIUCOME TAX KAPOOR It\trDi..IsTR[E5 (1'5) XTA X.98O/20n O COMMISSIONIER OF [[\NCOME TAX AFlU.lA RADTOS

(16) t'TA 2@7412{IJ1"O COMMiSS[OhJER OF INC@ME TAX 5h[OREWAI-A OVERSEAS

(L7) [T'A L4/2011 COMMISSIONIER OF INICOME T'AX SAN|GEETA JAnNI (LEl rTAL5/20n1 COMM[ss[ORIER OF IIUCOME TAX [.EAT[.{ER T'EC[.I

(x9) ITA 67l20x{ COMMISSIONER OF INICOME T'AX . VERSUS P[,.I ROX-ATOR I NX DIA [.TD"

(20) rTA L77l2onr_ COMMISSIOI{ER OF NNCOME TAX i BALDEV RAj JAGGI

(2n) rrA L78/2011L rrA No. ITA I2|2OL1, & ors.connected matters \')/ . . APPE[-[-AI{T . . .RESPONiDE[\!T . . APPELI.AIUT ..RESPONDENT . . APPEI.LAIVT . . "RESPOT\|DENT . " APPEI.LAIVT . . .R.ESPORIDEI{T . . APPELLAI\IT . . .RESPONNDEhIT . . APPELI.ANT . " .RESPONIDENT :, AFPELLAIUT . . .RESPONDENT COMMISSNONER OF INICOME TAX IND[.' GN'[PTA

(22) XTA L8l-/20nL COMIVIISSIONIER OF ]hICOME TAX SAnnGEETA JAIrU

(23) lrA n82l20nX COMMISSIOIUER, OF INICOME TAX cLc coRPoRATlohl (241 !'nA 3.84/20LL COMMISSIONER OF INCOME T'AX c[-c coRPoRAT[on{

(2s) rTA L85/20LL COMMISSIOIVER OF ITVCOME T'AX VIKAS KAI.RA

(26) XTA L87/2011 COMM]sSIORIER OF IIVCOME TAX ANttj GoEL Judgme Decisio (27r tTA 7Z3|2AO9 COMMIsSIONER OF II\ICOME TAX re ruo. ITA I2l2O1,l & ors.connected matters \9 . . APPELLANIT . . .RESPONiDEhIT ; . . APPEL!-AIUT . . .RESPONDENT . . APPE!-LANT . . .REsPOIUDENT . . APPELLA$\IT . . .RESPOIUDENT . . APPEI-LANT' , . .RESPONDENT' . . APPELLANT ..REsPONIDENilT. nt Reserved on: 10.02.2011 n Delivered On: 18.02.2O1I . . APPEL[-A[\XT I t\ . . .RESpOnlDEt\lT' hney, Mr. Abhishek Maratha, Tripathi;Sr. Srivastava, ggarwal, Mr. Anupam unsel with Mr. Amit a, Advocate with Mr. Kavita Jha, Shukla, Mr. Prakash Kumar and Kumar, Mr. O.P. Sapra, ,Mr. Amit kaj Jain, Mr. D.K. Goyal, Mr. VijaY Manish Chaudhary, Dr. Rakesh ate with Mr. RK. Aggarwal, Ms. , Advocates, papers may be allowed not? reported in the Digest? question of law. For the sake estions of law framed in one of interpretation of the Tribunal was justified n sing Officer to allow C of the Act in respect e brief rhich it i in the ded on of the e5of6 esent case, Tribunal y holding that the eduction as per the cf Section 80HHC in the assessee?" r all these cases ar( s simply followed (w ecial Bench, Mumbai 769lVum./2006 decir :, the Special Bench Pana PR.[YA[\[KA OVER.SEAS P, !-T'D, COUNSEL FOR THE REVENUE: Mr. Kamal Ms.'Suruchi Standing C Advocate. COUNSEL FOR THE ASSESSEES:Mr. Ajay Vo Mr. Somna Mr. Manish Dayal, Mr. P Nair and Mr Gupta, Advo Poonam Ahuj CORAM :- HOnX',tsLE MR. JLST'ICE A,K. 5[ t-toNt'B[-E MR. j[,,!ST',XCE M"!-. ME

¶1Whether Reporters of Local n to see the Judgment? To be referred to the Reporter Whether the Judgment should b A.K. SIKRI, [,

¶1All these appeals involved commo of convenience, we can reproduce the q these appeals:- "(a) Whether on a corre relevant statutory provisions law in directing the Ass deduction under section B0H of "orofit" on sale of DEPB?

¶23,

(b)Whether on the facts of thie pre . was justified in law in imflliedly assessee would be entitled to de, first proviso below sub-Sectioln 3 ol ': respect of DEPB Credit utilizep by t

¶2The orders passed by the Tribunfl in because of the reason that the Tribunal has was supposed to) the decision of the ITA-[- Spe case of Tapman Expart Vs. tf@ llTA Np. 57r dated 11'h August, 2009.1. By that judglpent, I rA No. ITA 72I2OII& ors.connecteO matters i i I I ---l"_-- \r I Tribunal has held that the face value of D$PB is chargeable to tax u/s 2B

(iiib) at the time of accrual of income, tnft is, when the application for DEPB is filed with the competent authlrity pursuant to exports and profit in sale of DEPB representing the ""["r, of sale proceeds of DEPB over its face value is liable to be considerdd u/s 28(iiid) at the time of its sale.

¶3The Revenue had filed the appeal ifl the High Court Adjudicate at Bombay against the aforesaid decision of lthe Special Bench of the ITAT. The Bombay High Court has reversed thf decision of the Tribunal and the judgment of the Bombay High Court lis reported as Carmrnissioner af lncome Tax Vs, Kalpatarw Cotraurs a'pd Chernicals, 328 ITR 457.

¶4Since the Tribunal had simply follofed Special Bench decision in I Topman Exports (supra) which stands lover ruled, we set aside the I order passed by the Tribunal in all these cpses and remit the cases back to the Tribunal to decide these appeal$ on merits after talcing into account factual oosition in all these cases.l bove terms. These appeals stand disposed of on

¶5.!ri DGE -64-ce-p- (M,L.MEhlrA) jTJDGE FEBR[..IARV n 8, 203.n, skb ors.connected matters re No. ITA I2|2OII &