Forbes Aquamall Limited, Hyderabad V. DCIT, Circle-1(1), Hyderabad

ITA 1055/HYD/2013

• Counselvise Citation: 105522514 RSA 2013
• Duration Of Justice: 1 year(s) 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 12-02-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 05-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMAKRISHNA BANDI
• Assessee Lawyers: A V RAGHURAM

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A, HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER I.T.A. NO. 1055/HYD/2013 ASSESSMENT YEAR: 2008-09 FORBES AQUAMALL LTD., PRESENTLY M/S.AQUAMALL WATER SOLUTIONS LTD., HYDERABAD [PAN: AAACF6419R] VS THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-1(1), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI A.V.RAGHU RAM, AR FOR REVENUE : SHRI RAMA KRISHNA BANDI, DR DATE OF HEARING : 1 2 - 0 2 - 201 5 DATE OF PRONOUNCEMENT : 20 - 0 2 - 2015 O R D E R PER B. RAMAKOTAIAH, A.M. : THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX(APPEALS)-SHILLONG DATED 30-03-2013. ASS ESSEE HAS RAISED THE FOLLOWING GROUNDS: '2. THE LEARNED CIT(A) THOUGH WAS INFORMED OF THE C HANGE OF JURISDICTION OF THE ASSESSEE FROM MEGHALAYA TO HYD ERABAD ERRED IN DECIDING THE APPEAL IN SPITE OF BEING CEASED OF JU RISDICTION. I.T.A. NO. 1055/HYD/2013 FORBES AQUAMALL LTD.,- PRESENTLY M/S.AQUAMALL WATER SOLUTIONS LTD., :- 2 -: 3. THE LEARNED CIT(A) ERRED IN HOLDING THAT THE A SSESSEE IS NOT ENGAGED IN MANUFACTURING ACTIVITY WITHOUT APPRECIAT ING THE FACT THE ON SAME FACTS IN OTHER CASES AND ALSO IN THE ASSESS EE'S OWN CASE THE SAME IS BEING ACCEPTED AS MANUFACTURING ACTIVI TY AND DEDUCTION U/S.80-IB AND 80-IC BEING ALLOWED. 4. THE LEARNED CIT(A) ERRED IN OBSERVING IMPLIED LY THAT IT IS REQUIRED TO HAVE PLANT AND MACHINERY OF SUBSTANTIA L WORTH TO BE IN A POSITION TO GET ENGAGED IN MANUFACTURING AND HOLD ING THAT WHAT THE ASSESSEE DID IS ONLY ASSEMBLING WHICH DOES NOT AMOUNT TO MANUFACTURING AND THEREBY ERRED IN CONFIRMING THE O RDER OF THE AO DENYING DEDUCTION U/S.80-IC & 80-IB'. 2. IT WAS SUBMITTED THAT ASSESSEE-COMPANY M/S.FORBE S AQUAMALL LTD., HAS SINCE BEEN MERGED WITH M/S.AQUAMALL WATER SOLUTIONS LTD., THE CIT-SHILLONG VIDE HIS ORDER DT.16-11-2012 EXERC ISING HIS POWERS CONFERRED U/S.127(2) OF THE INCOME TAX ACT (ACT) HA S TRANSFERRED ASSESSEES FILE FROM DCIT, CIRCLE-SHILLONG TO DCIT, CIRCLE-1(1), HYDERABAD. HE ALSO MARKED A COPY TO THE CIT(A) WIT H A REFERENCE TO PENDING APPELLATE PROCEEDINGS FOR THE AY.2008-09. HOWEVER, THE LD.CIT(A) VIDE HIS ORDER DT.30-03-2013 DECIDED THE APPEAL EX-PARTE AFTER DISCUSSING THE CLAIM OF DEDUCTION U/S.80IB/80IC ON MERITS AND DISMISSED THE APPEAL PREFERRED BY ASSESSEE. IT WAS THE CONTENTION OF ASSESSEE THAT CIT(A)-SHILLONG DOES NOT HAVE A JURIS DICTION TO DECIDE THE APPEAL. 3. WE HAVE HEARD THE LD.COUNSEL AND LD.DR AND PERUS ED THE PAPER BOOK PLACED ON RECORD INCLUDING THE ORDER OF MERGER ISSUED BY THE HONBLE HIGH COURT OF ANDHRA PRADESH BETWEEN ASSESS EE AND M/S.AQUAMALL WATER SOLUTIONS LTD., 4. AS PER RECORD, ASSESSEE AT THE TIME OF TRANSFER BY CIT-SHILLONG TO HYDERABAD, THE COMPANY HAS NOT MERGED WITH M/S.AQUA MALL WATER SOLUTIONS LTD., EVEN THOUGH THERE WAS CHANGE OF JUR ISDICTION FROM I.T.A. NO. 1055/HYD/2013 FORBES AQUAMALL LTD.,- PRESENTLY M/S.AQUAMALL WATER SOLUTIONS LTD., :- 3 -: SHILLONG TO HYDERABAD, LD.CIT(A) HAS NOT NOTICED IT AND CONSIDERED THE APPEAL EX-PARTE, QUA ASSESSEE. THE NOTICES ISSUED SEEMS TO HAVE BEEN SENT TO OLD ADDRESS. SUBSEQUENTLY, ASSESSEE GOT MER GED WITH M/S.AQUAMALL WATER SOLUTIONS LTD. IN VIEW OF THE AB OVE FACTS, WE ARE OF THE OPINION THAT THE ORDER BY CIT(A) SHOULD BE SET ASIDE AND MATTER HAS TO BE RESTORED TO THE FILE OF CIT(A) AT HYDERABAD H AVING JURISDICTION SO THAT ASSESSEES CONTENTIONS CAN BE HEARD AFRESH. W E ALSO NOTICE THAT SOME OF THE ISSUES RAISED BY THE ASSESSING OFFICER THAT ASSESSEE DO NOT HAVE ANY ASSETS/MACHINERY ALSO REQUIRE EXAMINATION. 5. IN VIEW OF THIS, WITHOUT CONSIDERING THE GROUNDS RAISED IN GROUND NO.3 AND 4, WE HEREBY SET ASIDE THE ORDER OF CIT(A) - SHILLONG AND RESTORE THE APPEAL TO BE HEARD AFRESH BY THE CIT(A) AT HYDERABAD. 6. WITH THESE DIRECTIONS, ASSESSEES GROUNDS ARE AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 20 TH FEBRUARY, 2015. SD/- SD/- (D. MANMOHAN) (B. RAMAKOTAIAH) VICE PRESIDENT ACCOUNTA NT MEMBER HYDERABAD, DATED 20 TH FEBRUARY, 2015 TNMM I.T.A. NO. 1055/HYD/2013 FORBES AQUAMALL LTD.,- PRESENTLY M/S.AQUAMALL WATER SOLUTIONS LTD., :- 4 -: COPY TO : 1. FORBES AQUAMALL LTD. , PRESENTLY M/S.AQUAMALL WATER SOLUTIONS LTD., C/O. SHRI K.VASANTKUMAR & A.V.RAGHU RAM, ADVOCATES, 610, 6 TH FLOOR, BABUKHAN ESTATE, BASHEERBAGH, HYDERABAD-1. 2. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1( 1), HYDERABAD. 3. CIT(A), SHILLONG. 4. CIT-SHILLONG. 5. D.R. ITAT, HYDERABAD.