ACIT, Panchkula V. M/s Surya Telecom Pvt. Ltd., Panchkula

ITA 1110/CHANDI/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4534 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 31-12-2013
• Assessment Year: 2005-2006
• Appeal Filed On: 29-10-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE SHRI T.R.SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.1110 /CHD/2012 ASSESSMENT YEAR : 2005-06 THE A.C.I.T., VS. M/S SURYA TELECOM PVT. LTD., PANCHKULA CIRCLE, SCO 39, SECTOR 3, PANCHKULA. PANCHKULA PAN: AAHCS3041F (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANJIT SINGH, DR RESPONDENT BY : SHRI AJAY JAGGA DATE OF HEARING : 31.12.2013 DATE OF PRONOUNCEMENT : 31.12.2013 O R D E R PER SUSHMA CHOWLA, J.M. : THE APPEAL FILED BY THE REVENUE IS AGAINST THE ORDE R OF THE COMMISSIONER OF INCOME-TAX (APPEALS), PANCHKULA DAT ED 29.08.2012 RELATING TO ASSESSMENT YEAR 2005-06 AGAINST THE ORD ER PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (IN SHOR T THE ACT). 2. THE ONLY GROUND OF APPEAL RAISED BY THE REVENUE READS AS UNDER: WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE , THE LD. CIT(A) WAS JUSTIFIED IN HOLDING THAT THE ASSESSEE I S ENTITLED TO DEDUCTION UNDER SECTION 80IC OF THE INCOME TAX ACT, 1961, DESPITE THE FACT THAT THE ASSESSING OFFICER IN THE ASSESSME NT ORDER HAS CLEARLY HELD THAT THE ASSESSEE IS NOT ENGAGED IN TH E PROCESS OF MANUFACTURING AND IS MERELY ENGAGED IN THE SUPPLY O F FINISHED GOODS TO GOVERNMENT AGENCIES? 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE HAD CLAIMED DEDUCTION U/S 80IC OF THE INCOME TAX ACT. DURING T HE ASSESSMENT 2 PROCEEDINGS FOR ASSESSMENT YEAR 2006-07, IT WAS OBS ERVED THAT NO MANUFACTURING / PRODUCTION ACTIVITY WAS TAKING PLAC E AT THE PREMISES OF THE ASSESSEE AND DEDUCTION UNDER SECTION 80IC OF TH E ACT WAS DENIED TO THE ASSESSEE. FOLLOWING THE SAME THE ASSESSING OF FICER ACCORDINGLY DISALLOWED THE DEDUCTION CLAIMED U/S 80IC OF THE AC T THOUGH SIMILAR CLAIM OF THE ASSESSEE RELATING TO ASSESSMENT YEAR 2 006-07 WAS ALLOWED BY THE CIT(A). THE ASSESSING OFFICER OBSERVED THAT THE APPEAL AGAINST THE ORDER OF TRIBUNAL RELATING TO ASSESSMENT YEAR 2 006-07 WAS PENDING AND THE SAME WAS NOT TO BE ADOPTED FOR COMPUTING TH E INCOME OF THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION. THE CIT (A) NOTED THE PLEADING OF THE ASSESSEE IN PARA 4.1 AT PAGE 2 OF T HE APPELLATE ORDER. THE CLAIM OF THE ASSESSEE WAS THAT THE DEDUCTION U/S 80 IC OF THE ACT RELATING TO ASSESSMENT YEAR 2006-07 HAS BEEN DECIDED IN FAVO UR OF THE ASSESSEE BOTH BY THE CIT(A) AND THE TRIBUNAL. THE TRIBUNAL IN ITA NO. 182/CHD/2010 VIDE ORDER DATED 30.8.2010 RELATING TO ASSESSMENT YEAR 2006-07 HAD HELD THAT THE ASSESSEE WAS CARRYING ON ONE OF THE ACTIVITY OF MANUFACTURING PROCESS, WHICH ITSELF IS MANUFACTURIN G AND HENCE THE ASSESSEE IS ENTITLED TO DEDUCTION U/S 80IC OF THE A CT. THE CIT(A) FOLLOWING THE ORDER OF THE TRIBUNAL IN ASSESSEES O WN CASE RELATING TO ASSESSMENT YEAR 2006-07 ALLOWED THE CLAIM OF THE AS SESSEE U/S 80IC OF THE ACT. THE REVENUE IS IN APPEAL AGAINST THE SAID ORDER OF CIT(A). 4. THE LEARNED A.R. FOR THE ASSESSEE AT THE OUTSET POINTED OUT THAT THE ISSUE IN THE GROUND OF APPEAL RAISED BY THE ASSESSE E IS COVERED BY THE ORDER OF THE TRIBUNAL IN ASSESSEE OWN CASE RELATING TO ASSESSMENT YEAR 2006-07 IN ITA NO.182/CHD/2010, ORDER DATED 30.8.20 10 AND IN ITA NO.263/CHD/2011 RELATING TO ASSESSMENT YEAR 2004-05 , ORDER DATED 26.4.2011. 3 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ISSUE IN RESPECT OF DEDUCTION ALLOWABLE U/S 80IC OF THE ACT IN ASSESSEES CASE AROSE IN ASSESSMENT YEAR 2006-07 BEFORE THE TRIBUNAL. THE CHANDIGARH BENCH OF THE TRIBUNAL VIDE ITS ORDER DAT ED 30.8.2010 IN ITA NO. 182/CHD/2010 HELD THE ASSESSEE TO BE ELIGIBLE F OR DEDUCTION U/S 80IC OF THE ACT. THE OBSERVATIONS OF THE TRIBUNAL ARE I NCORPORATED UNDER PARA 7.1 AT PAGES 5 TO 7 OF THE APPELLATE ORDER AND ARE NOT BEING REPRODUCED FOR THE SAKE OF BREVITY. 6. FOLLOWING THE RATIO LAID DOWN BY THE TRIBUNAL IN ITA NO. 182/CHD/2010 VIDE ORDER DATED 30.10.2010 IN ASSESSE ES OWN CASE RELATING TO ASSESSMENT YEAR 2006-07, WHICH HAS BEEN FOLLOWED IN ASSESSMENT YEAR 2004-05 (SUPRA), WE UPHOLD THE ORDE R OF CIT(A) IN ALLOWING DEDUCTION U/S 80IC OF THE ACT FOR THE IMPU GNED ASSESSMENT YEAR. THE GROUND OF APPEAL RAISED BY THE REVENUE IS THUS DISMISSED. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 31 ST DAY OF DECEMBER, 2013. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 31 ST DECEMBER, 2013 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH 4