Computer Graphics Ltd., CHENNAI V. JCIT, CHENNAI

CO 57/CHNY/2012

• Counselvise Citation: [2012] 122 COUNSELVISE.COM (IT) 7147 (ITAT-CHENNAI)
• Duration Of Justice: 29 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 08-05-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2004-2005
• Appeal Filed On: 09-04-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: SHAJI P JACOB IRS
• Section: 143(3); 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI CHALL NAGENDRA PRASAD, JUDICIAL MEMBER ITA NOS.441, 442, 443 & 444(MDS)/2012 ASSESSMENT YEARS: 2002-03, 2003-04, 2004-05 & 2008- 09 AND C.O. NOS.55, 56 & 57(MDS)/2012 IN ITA NOS.441, 442 & 443(MDS)/2012 (A.YS. 2002-03, 2003-04 & 2004-05) THE JOINT COMMISSIONER OF INCOME-TAX(OSD), CENTRAL CIRCLE IV(2), CHENNAI. VS. M/S.COMPUTER GRAPHICS LTD., STERLING SILVER NOS.24 & 25, SIVAGANGA ROAD, OFF STERLING ROAD, NUNGAMBAKKAM,CHENNAI-34 PAN AAACC1274F. (APPELLANT) (R ESPONDENT/CROSS OBJECTOR) APPELLANT BY : SHRI SHAJI P JACOB , IRS, ADDL. CIT RESPONDENT BY : NONE DATE OF HEARING : 8 TH MAY, 2012 DATE OF PRONOUNCEMENT : 8 TH MAY, 2012 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT: THERE ARE FOUR APPEALS FILED BY THE REVENUE AND T HREE CROSS OBJECTIONS FILED BY THE ASSESSEE. THE APPEAL S RELATE TO THE - - ITA 441 TO 444 OF 2012, ETC. 2 ASSESSMENT YEARS 2002-03, 2003-04, 2004-05 AND 2008 -09. THE CROSS OBJECTIONS RELATE TO THE ASSESSMENT YEARS 2002-03, 2003-04 AND 2004-05. 2. THE APPEALS AND THE CROSS OBJECTIONS ARE DIRECT ED AGAINST THE COMMON ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX(APPEALS)-I AT CHENNAI, DATED 22-9-2011. ALL THESE PROCEEDINGS ARISE OUT OF THE ASSESSMENTS COMPLETED UNDER SECTION 143(3) OF THE INCOME-TAX ACT, 1961. 3. THE ONLY GROUND RAISED BY THE REVENUE IN ALL TH ESE APPEALS IS THAT THE COMMISSIONER OF INCOME-TAX(APPE ALS) HAS ERRED IN GRANTING DEDUCTION TO THE ASSESSEE UNDER S ECTION 80IB, RELYING ON THE ORDERS OF THE INCOME-TAX APPELLATE T RIBUNAL FOR THE ASSESSMENT YEARS 2005-06 AND 2006-07 AND THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS) FOR THE ASSESSM ENT YEAR 2007-08. THE GROUND OF THE REVENUE IS THAT THE ABO VE ORDERS HAVE NOT BECOME FINAL, AS THE MATTERS HAVE BEEN TAK EN UP BEFORE THE HONBLE HIGH COURT. 4. THE GRIEVANCE OF THE REVENUE IS THAT THE INCOME RECEIVED BY THE ASSESSEE BY WAY OF SALES-TAX INCENT IVE, FREIGHT INSURANCE AND HANDLING CHARGES SHOULD NOT HAVE BEEN TREATED AS - - ITA 441 TO 444 OF 2012, ETC. 3 PART OF ELIGIBLE PROFIT FOR THE PURPOSE OF DEDUCTIO N AVAILABLE UNDER SECTION 80IB. 5. THE COMMISSIONER OF INCOME-TAX(APPEALS), WHILE DISPOSING OF THE ISSUE, FOUND THAT THE JURISDICTION AL TRIBUNAL HAS CONSIDERED THE VERY SAME ITEMS FOR THE PURPOSE OF D EDUCTION UNDER SECTION 80IB FOR THE ASSESSMENT YEARS 2005-06 AND 2006-07. HE ALSO OBSERVED THAT HIS PREDECESSOR HAS FOLLOWED THE DECISION OF THE TRIBUNAL WHILE DISPOSING OF THE APPEAL FILED BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2007-08. 6. THEREFORE, AS ON DATE, THE ORDER OF THE TRIBUNA L HOLDS THE FIELD, AS THE HONBLE HIGH COURT HAS NOT SO FAR INTERFERED WITH THE FINDINGS OF THE TRIBUNAL. AS S UCH, THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS RIGHTLY FOL LOWED THE ORDERS OF THE TRIBUNAL, CHENNAI BENCHES AND DECIDED THE ISSUES RAISED BY THE ASSESSEE BEFORE HIM. IN THESE CIRCUM STANCES, WE FIND THAT THESE APPEALS FILED BY THE REVENUE ARE LI ABLE TO BE DISMISSED. 7. AS FAR AS THE CROSS OBJECTIONS ARE CONCERNED, T HEY EFFECTIVELY DO SUPPORT THE ORDER PASSED BY THE COMM ISSIONER OF INCOME-TAX(APPEALS). AS THE APPEALS FILED BY THE R EVENUE HAVE - - ITA 441 TO 444 OF 2012, ETC. 4 BEEN FOUND LIABLE TO BE DISMISSED, THE CROSS OBJECT IONS HAVE BECOME INFRUCTUOUS. 8. IN RESULT, THE APPEALS FILED BY THE REVENUE AND THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON TUESDAY, THE 8 TH OF MAY, 2012 AT CHENNAI. SD/- SD/- (CHALLA NAGENDRA PRASAD) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 8 TH MAY, 2012. V.A.P. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F.