DCIT, Bangalore V. Saint Gobain Crystals & Detectors India Ltd., Bangalore

ITA 1059/BANG/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60772 (ITAT-BANGALORE)
• Duration Of Justice: 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 11-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: FARHAT HUSSAIN QURESHI CITII

Judgement Text

ITA.1059/BANG/2011 PAG E - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'B', BANGALORE BEFORE SHRI. N. BARATHVAJA SANKAR, VICE PRESIDENT AND SHRI. GEORGE GEORGE K. JUDICIAL MEMBER I.T.A NO.1059/BANG/2011 (ASSESSMENT YEAR : 2005-06) DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 12(3), BANGALORE .. APPELLANT V. SAINT GOBAIN CRYSTALS & DETECTORS INDIA LTD., SY.NO.171/2, MARUTHI INDUSTRIAL ESTATE, HOODI RAJAPALYA, WHITEFIELD MAIN ROAD, BANGALORE 560 048 .. RESPONDENT PAN : AAACB6794R APPELLANT BY : NONE RESPONDENT BY : SHRI. FARHAT HUSSAIN QURESHI, CIT - II DATE OF HEARING : 27.06.2012 DATE OF PRONOUNCEMENT : 27.06.2012 O R D E R PER N. BARATHVAJA SANKAR, VICE PRESIDENT : THIS IS AN APPEAL PREFERRED BY THE REVENUE FOR THE ASSESSMENT YEAR 2005-06, IN THE CASE OF SAINT GOBAIN CRYSTALS & DETECTORS INDIA LTD., BANGALORE, AGAINST THE APPELLATE ORDER DATED. 17.08.2011 OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-III, BANGALORE . ITA.1059/BANG/2011 PAG E - 2 02. THE ONLY ISSUE BROUGHT BEFORE US FOR ADJUDICATI ON IS WHETHER THE COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN LAW I N ALLOWING DEDUCTION OF RS.1,62,85,145/-M U/S.10B BY RELYING O N ITAT'S ORDER IN THE ASSESSEE'S OWN CASE FOR ASSESSMENT YEARS 2003-0 4 AND 2004-05 WHICH HAVE NOT BEEN ACCEPTED BY THE DEPARTMENT AND CONTESTED BEFORE THE HON'BLE HIGH COURT IN APPEALS U/S.260A. 03. THE BRIEF FACTS AS GATHERED FROM THE RECORDS AR E THAT THE ASSESSEE IS A PRIVATE LIMITED COMPANY ENGAGED IN THE BUSINES S OF MANUFACTURE AND SALE OF RADIATION DETECTORS AND RADIATION MEASU RING EQUIPMENTS. INITIALLY, THE ASSESSEE WAS INCORPORATED AS BICRON PRODUCTS PRIVATE LIMITED. IN THE YEAR 2000 THE NAME OF THE COMPANY WAS CHANGED TO SAINT GOBAIN CRYSTALS & DETECTORS INDIA LTD., THE COMPANY HAS BEEN EXPORTING ITS PRODUCTS EXCLUSIVELY TO USA AND FRANC E, WHICH IN TURN REACH THE ULTIMATE BUYER THROUGH THE GROUP COMPANIE S WORLDWIDE. THE ASSESSEE IS A 100% EXPORT ORIENTED UNIT APPROVE D BY SIA, MINISTRY OF INDUSTRY, GOVERNMENT OF INDIA VIDE MINI STRY OF INDUSTRY'S LETTER NO.PER:542(1995)/EOB/573/95 DATED.9.10.1995. FOR THE ASSESSMENT YEAR UNDER CONSIDERATION, THE ASSESSEE F ILED THE RETURN OF INCOME ON 29.10.2005 DECLARING A TOTAL INCOME OF RS .5,46,190/-. ASSESSMENT U/S.143(3) WAS COMPLETED VIDE ORDER DATE D.31.10.2008 AND THE TOTAL INCOME WAS ASSESSED AT RS.1,68,31,335 /-. THE ASSESSING OFFICER REJECTED THE CLAIM OF THE ASSESSEE ON THE G ROUND THAT THE ITA.1059/BANG/2011 PAG E - 3 ASSESSEE IS NOT INTO MANUFACTURE OR PRODUCTION OF A RTICLE OR THING, AS REQUIRED U/S.10B OF THE ACT. AGGRIEVED THE ASSESSE E MOVED THE MATTER IN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY AND MADE ELABORATE SUBMISSIONS. THE ASSESSEE ALSO RELIED ON THE DECIS ION OF THE ITAT IN ITA.15 & 720/BANG/2008, DATED.30.01.2009, IN THE AS SESSEE'S OWN CASE FOR THE ASSESSMENT YEARS 2003-04 AND 2004-05 O N SIMILAR FACTS. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) AF TER CONSIDERING THE SUBMISSIONS IN THE LIGHT OF THE DECISION OF THE TRIBUNAL AND FOLLOWING THE SAME, ALLOWED THE CLAIM OF THE ASSESS EE. NOW THE REVENUE IS AGGRIEVED AND IS ON SECOND APPEAL BEFORE US ON THIS ISSUE. 04. ONE OF THE GROUNDS RAISED BY THE REVENUE READS AS UNDER : '2. THE LD.CIT(A) HAS ERRED IN LAW IN ALLOWING DEDU CTION U/S.10B OF RS.1,62,85,145/- BY RELYING ON THE ITAT' S ORDER IN THE ASSESSEE'S OWN CASE FOR A.YS.2003-04 AND 2004-0 5 WHICH HAVE NOT BEEN ACCEPTED BY THE DEPARTMENT AND CONTESTED BEFORE THE HON'BLE HIGH COURT IN APPEALS U/S.260A.' 05. NOBODY WAS PRESENT FOR THE ASSESSEE. HOWEVER, WE HAVE HEARD THE LEARNED DR AND CONSIDERED THE FACTS AND MATERIA LS ON RECORD INCLUDING THE EARLIER ORDER OF THE TRIBUNAL IN ITA. 15 & 720/BANG/2008, DATED.30.01.2009, IN THE ASSESSEE'S OWN CASE FOR THE ASSESSMENT YEARS 2003-04 AND 2004-05. EVEN FROM TH E GROUNDS OF APPEAL AS QUOTED ABOVE, IT IS CLEAR THAT THE REVENU E HAS COME ON APPEAL FOR THIS YEAR ONLY FOR THE SAKE OF KEEPING T HE ISSUE ALIVE. IN ITA.1059/BANG/2011 PAG E - 4 OTHER WORDS, THE REVENUE HAS STATED THAT THE EARLIE R ORDER OF THE TRIBUNAL HAS BEEN APPEALED BEFORE THE HON'BLE HIGH COURT U/S.260A OF THE IT ACT. HOWEVER, NOTHING HAS BEEN BROUGHT TO O UR NOTICE THAT THE SAID ORDER OF THE TRIBUNAL IN THE ASSESSEE'S OWN CA SE FOR AYS.2003-04 AND 2004-05 HAD BEEN REVERSED BY THE HON'BLE HIGH C OURT. IN SUCH CIRCUMSTANCES, THE ONLY ORDER HOLDING THE FIELD IS THAT OF THIS TRIBUNAL, DATED.30.01.2009. HENCE, FOLLOWING THE ABOVE DECIS ION OF THE TRIBUNAL WE ARE INCLINED TO DISMISS THE APPEAL OF T HE REVENUE. 06. IN THE RESULT, REVENUE'S APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE END OF HE ARING ON 27.06.2012. SD/- SD/- (GEORGE GEORGE K) (N. BARATHVAJA SANKAR) JUDICIAL MEMBER VICE PRESIDENT