The ACIT, Hyderabad V. M/s. PES Engineers Pvt. Ltd., Hyderabad

ITA 1264/HYD/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4841 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 10-09-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V RAGHAVENDRA RAO
• Section: 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO. 1264/HYD/2013 ASSESSMENT YEAR 2009-10 THE ACIT CIRCLE-16(3) HYDERABAD VS. M/S. PES ENGINEERS PVT. LTD. HYDERABAD PAN: AABCP4220B APPELLANT RESPONDENT APPELLANT BY: SMT. K. HARITHA RESPONDENT BY: SRI V. RAGHAVENDRA RAO DATE OF HEARING: 12 . 12 .2013 DATE OF PRONOUNCEMENT: 12 . 12 .2013 O R D E R PER CHANDRA POOJARI, AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-V, HYDERABAD DATED 28.6.2013 FOR A.Y. 2009-10. 2. THE REVENUE RAISED THE FOLLOWING GROUNDS: 1. THE ORDER OF THE CIT(A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE CIT(A) ERRED IN ALLOWING DEDUCTION U/S. 80IB CLAIMED BY THE ASSESSEE AS THE ASSESSEE HAD NOT MANUFACTURED ANY ARTICLE OR THING, WHICH IS THE MAIN CONDITION OF SECTION 80IB. 3. THE ASSESSEE IS DERIVING INCOME FROM FABRICATION AND ERECTION CHARGES FROM HYDRO POWER PROJECTS WHICH CANNOT BE TREATED AS MANUFACTURING ACTIVITY AS HELD BY HONBLE SUPREME COURT IN THE CASE OF NC BHARADWAJ (204 ITR 413) AND CIT VS. PRESSURE PILING CO. (INDIA) P. LTD. REPORTED IN 204 ITR 429. ITA. NO. 1264/HYD/2013 M/S. PES ENGINEERS PVT. LTD. ====================== 2 3. AFTER HEARING BOTH THE PARTIES, WE ARE OF THE OPINI ON THAT SIMILAR ISSUE CAME FOR CONSIDERATION BEFORE THIS TR IBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2010-11 IN ITA NO. 653 /HYD/2013. THE TRIBUNAL VIDE ORDER DATED 12.8.2013 HELD AS FOL LOWS: '5. WE HAVE HEARD THE ARGUMENTS OF BOTH THE PARTIES AND PERUSED THE RECORD AS WELL AS GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. WE FIND THAT SIMIL AR ISSUE CAME UP FOR CONSIDERATION BEFORE THE COORDINA TE BENCH OF ITAT, HYDERABAD IN ASSESSEES OWN CASE FOR AY 2008-09 IN ITA NO. 1407/HYD/2011 VIDE ORDER DATED 16/11/2011 WHEREIN THE COORDINATE BENCH HELD AS FOLLOWS: 4. WE HAVE HEARD BOTH THE PARTIES. WE FIND THAT THE ISSUE INVOLVED IN THE PRESENT APPEAL, VIZ., ALLOWABILITY OF DEDUCTION U/S 80IB IN RESPECT OF UNITS WHERE GENERATORS AND PENSTOCKS ARE BEING FABRICATED AND ERECTED HAS COME UP FOR ADJUDICATION BEFORE THIS TRIBUNAL IN ASSESSEES OWN CASE FOR THE EARLIER YEARS AND THIS TRIBUNAL FOR THE IMMEDIATELY PRECEDING YEAR VIZ., 2006-07 IN ITA NO. 106/HYD/2010 VIDE ITS ORDER DATED 30TH APRIL, 2010, HAS DECIDED THE SAME IN FAVOUR OF THE ASSESSEE, FOLLOWING STILL EARLIER DECISIONS OF THE TRIBUNAL ON THIS VERY ISSUE IN ASSESSEES OWN CASE. CONSISTENT WITH THE VIEW TAKEN BY THE TRIBUNAL IN ASSESSEES OWN CASE FOR EARLIER YEARS ON THE ISSUE INVOLVED IN THIS APPEAL, WE UPHOLD THE ORDER OF THE CIT(A) FOR THE ASSESSMENT YEAR 2008-09 AS WELL AND REJECT THE GROUNDS OF THE REVENUE IN THIS APPEAL. 6. AS THE ISSUE UNDER CONSIDERATION IS MATERIALLY IDENTICAL TO THAT OF THE CASE DECIDED BY THE COORDI NATE BENCH IN ASSESSEES OWN CASE FOR AY 2008-09 (SUPRA), RESPECTFULLY FOLLOWING THE SAME WE UPHOLD THE ORDER OF THE CIT(A) IN HOLDING THAT THAT THE ASSESSEE IS ENTITLED TO DEDUCTION U/S 80IB IN RESPE CT OF UNITS WHERE GENERATORS AND PENSTOCKS ARE BEING FABRICATED AND ERECTED AND DISMISS THE GROUNDS RAISED BY THE REVENUE IN THIS REGARD. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED.' ITA. NO. 1264/HYD/2013 M/S. PES ENGINEERS PVT. LTD. ====================== 3 4. CONSIDERING THE CONSISTENT VIEW TAKEN BY THE TRIBUN AL, WE ARE INCLINED TO DISMISS THE GROUNDS RAISED BY THE R EVENUE. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH DECEMBER, 2013. SD/ - (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER SD/ - (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED 12 TH DECEMBER, 2013 TPRAO COPY FORWARDED TO: 1. THE ACIT, CIRCLE - 16(3), 6 TH FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD. 2. M/S. PES ENGINEERS PVT. LTD., 1 ST FLOOR, PANCOM CHAMBERS, 6-3-1090/1/A, RAJ BHAVAN ROAD, HYDERABAD. 3. THE CIT(A) - V, HYDERABAD. 4. THE CIT - I V, HYDERABAD 5. THE DR 'A' BENCH, ITAT, HYDERABAD