M/s Granite mart Limited v. The ITO, ward-11(2), Bangalore
[Citation -2016-LL-0916-148]

Citation 2016-LL-0916-148
Appellant Name M/s Granite mart Limited
Respondent Name The ITO, ward-11(2), Bangalore
Court ITAT-Bangalore
Relevant Act Income-tax
Date of Order 16/09/2016
Assessment Year 2010-11
Judgment View Judgment
Keyword Tags income from business • foreign exchange • interest income
Bot Summary: CIT Date of hearing : 14-09-2016 Date of pronouncement : 16-09-2016 ORDER PER A. K. GARODIA, A.M.: Both these appeals are filed by the assessee. The assessee has raised various grounds in both these years but the only two grievances of the assessee are there. Learned AR of the assessee submitted that on the first issue, there is adverse order of the tribunal in A. Y. 2005 06 2006 07 in ITA Nos. The first issue is so covered by the judgment rendered in the case of Tata Elxsi Ltd. vs. ACIT. In this case, it was held as under:- Once goods manufactured by assessee was shown to have been exported out of India either by assessee or by another STP Unit and foreign exchange was directly attributable to such export, then Section 10A was attracted and such exporter was entitled to benefit of deduction of such profits. The second issue is also covered in favour of the assessee by the judgment of Hon ble Jurisdictional High Court rendered in the case of CIT vs. Rajesh exports Limited. In the result, both these appeals of the assessee are allowed. 12 The date on which the file goes to the dispatch section for dispatch of the Tribunal order 13 Date of dispatch of order.


IN INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH SMC , BANGALORE BEFORE SHRI A.K.GARODIA, ACCOUNANT MEMBER ITA No. 1166 & 1167(Bang) 2016 (Assessment years : 2010 11 & 2011 12) M/s Granite mart Limited, 41 D, KAIDB Industrial Area, Hoskote, Bangalore 562114 PAN : AABCG8488L Appellant Vs ITO, ward 11 (2), Bangalore Respondent Assessee by : Shri A. Shankar, Advocate Revenue by : Shri G. Manoj Kumar, Addl. CIT Date of hearing : 14-09-2016 Date of pronouncement : 16-09-2016 ORDER PER A. K. GARODIA, A.M.: Both these appeals are filed by assessee. These are directed against two separate orders of learned CIT (A) - 3 Bengaluru both dated 31.03.2016 for A. Y. 2010 11 & 2011 - 12. Both these appeals were heard together and are being disposed of by this common order for sake of convenience. 2. assessee has raised various grounds in both these years but only two grievances of assessee are there. First grievance is about none allowing of exemption u/s 10 B in both years in respect of exports through other EOU units and third party exporters. second grievance is about non granting of exemption in A. Y. 2011 12 u/s 10B in respect of interest income of Rs. 174,868/-. 2 ITA No. 1166 & 1167(Bang) 2016 3. Learned AR of assessee submitted that on first issue, there is adverse order of tribunal in A. Y. 2005 06 & 2006 07 in ITA Nos. 22 & 761/Bang/2010 dated 17.09.2010. He submitted copy of this tribunal order and pointed out that in these years, tribunal followed another tribunal order rendered in case of Tata Elxsi Ltd. Vs. ACIT as reported in 115 TTJ 423. Thereafter he submitted this tribunal order rendered in case of Tata Elxsi Ltd. Vs. ACIT (Supra) has been reversed by Hon ble Karnataka High Court as per judgment reported in 127 DTR 327. He submitted that tribunal order in earlier years is already challenged by assessee before High Court and appeals are pending in High Court but since, issue is now covered in favour of assessee by subsequent judgment of High Court reversing tribunal order followed by tribunal in assessee s case in earlier years and therefore, this issue should be decided in favour of assessee by following this judgment of Hon ble Jurisdictional High Court in preference to tribunal order in assessee s own case in earlier years. Regarding second issue i.e. eligibility of interest income for exemption u/s 10B, he submitted that now this issue is also covered in favour of assessee by judgment of Hon ble Jurisdictional High Court rendered in case of CIT vs. Rajesh exports Limited in ITA No. 1/2009 dated 14.10.2014. He submitted copy of this judgment and pointed out that in that case also, question before Hon ble Jurisdictional High Court was these that whether interest income on FD with bank was liable to tax under head Income from Other Sources or Income from Business and whether such interest income is eligible for deduction u/s 10 B and it was held in that case that it is 3 ITA No. 1166 & 1167(Bang) 2016 business income and is eligible for exemption u/s 10B. Learned DR of revenue supported orders of lower authorities. 4. I have considered facts of case and gone through orders of lower authorities and judgments cited by learned AR of assessee. I find that both issues are covered in favour of assessee by two separate judgments of Hon ble Jurisdictional High Court. first issue is so covered by judgment rendered in case of Tata Elxsi Ltd. vs. ACIT (Supra). In this case, it was held as under:- Once goods manufactured by assessee was shown to have been exported out of India either by assessee or by another STP Unit and foreign exchange was directly attributable to such export, then Section 10A was attracted and such exporter was entitled to benefit of deduction of such profits. Respectfully following this judgment, this issue is decided in favour of assessee in both years. second issue is also covered in favour of assessee by judgment of Hon ble Jurisdictional High Court rendered in case of CIT vs. Rajesh exports Limited (Supra). Respectfully following this judgment, this issue is also decided in favour of assessee. 5. In result, both these appeals of assessee are allowed. Order pronounced in open court on date mentioned on caption page. (A.K. GARODIA) ACCOUNTANT MEMBER Bangalore: Dated : 16.09.2016 am* 4 ITA No. 1166 & 1167(Bang) 2016 Copy to : 1 Appellant 2 Respondent 3 CIT(A)-II Bangalore 4 CIT 5 DR, ITAT, Bangalore. 6 Guard file By order, AR, ITAT, Bangalore 1. Date of Dictation .. 2. Date on which typed draft is placed before dictating Member . 3. Date on which approved draft comes to Sr. P. S. .. 4 Date on which order is placed before dictating Member for pronouncement .. 5. Date on which order comes back to Sr. P.S. .. 6. Date of uploading order on website .. 7. If not uploaded, furnish reason for doing so . 8. Date on which file goes to Bench Clerk .. 9. Date on which order does for Xerox & endorsement . 10. Date on which file goes to Head Clerk . 11 date on which file goes to Assistant Registrar for signature on order . 12 date on which file goes to dispatch section for dispatch of Tribunal order 13 Date of dispatch of order M/s Granite mart Limited v. ITO, ward-11(2), Bangalore
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