IN THE ITAT MUMBAI BENCH ‘I’
Hindustan Colas Ltd.
Versus
Assistant Commissioner of Income-tax
IT APPEAL NOS. 3981 & 5498 (MUM) OF 2008 AND 6829 (MUM.) OF 2010
[ASSESSMENT YEARs 2002-03 to 2004-05]
OCTOBER 19, 2012
ORDER
Rajendra Singh, Accountant Member
These appeals by the assessee are directed against different orders of CIT(A) dated 11.3.2010, 1.5.2008 and 28.3.2006 respectively for assessment years 2002-03, 2003-04 and 2004-05. The disputes raised in these appeals relate to allowability of deduction under section 80IB and under section 35AB of the Income tax Act, 1961. These appeals which were heard together and also involve common issues are being disposed of by a single consolidated order for the sake of convenience.
2. We first take up the appeal of the assessee in ITA No. 6829/M/10 for the assessment year 2002-03. The assessee has raised disputes on two different grounds which relate to deduction under section 80-IB and under section 35AB of the Income tax Act.
2.1 We fist take up the issue relating to allowability of deduction under section 80IB of the Act. The assessee is a joint venture between Hindustan Petroleum Corporation Ltd.(HPCL) and M/s. Colas SA France formed vide agreement dated 25.11.1994. The joint venture had been created for manufacture of various products such as bitumen emulsions; cutback bitumen and modified bitumen. Bitumen is a by-product produced from refining of crude oil or crude petroleum. The assessee purchases bitumen from HPCL and other parties and uses the same as raw material for production of bitumen emulsions; cutback bitumen and modified bitumen after applying certain processes. After joint venture agreement was signed, the assessee set up various units from time to time details of which are given as under :-
