ITO, Ward-3(2), Hyd, Hyderabad V. Roshni Powertech Pvt.Ltd., Hyd, Hyderabad

ITA 1276/HYD/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6671 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-04-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 05-04-2016
• Assessment Year: 2012-2013
• Appeal Filed On: 05-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B RAMANJANEYULU
• Assessee Lawyers: S RAMA RAO
• Keywords: Capital receipt
• Section: 143(3); 115JB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA.NO.1276/HYD/2015 ASSESSMENT YEAR 2012-2013 THE INCOME TAX OFFICER, WARD-3(2), HYDERABAD. VS. M/S. ROSHNI POWERTECH P. LTD., HYDERABAD 500033. PAN AABCR4570N (APPELLANT) (RESPONDENT) FOR REVENUE : MR. B. RAMANJANEYULU FOR ASSESSEE : MR. S. RAMA RAO DATE OF HEARING : 05.04.2016 DATE OF PRONOUNCEMENT : 13 .04.2016 ORDER PER SMT. P. MADHAVI DEVI, J.M. THIS IS REVENUES APPEAL FOR THE A.Y. 2012- 2013. IN THIS APPEAL, THE REVENUE IS AGGRIEVED BY T HE ORDER OF THE CIT(A) IN NOT UPHOLDING THE ADDITION M ADE BY THE A.O. OF RS.3,19,75,739 TREATING THE INCOME FROM SALE OF CARBON CREDITS AS INCOME FROM OTHER SOURCES. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE COMPANY WHICH IS IN THE BUSINESS OF GENERATION AND SUPPLY OF POWER, FILED ITS RETURN OF INCOME FOR THE A.Y. 2012-2013 ON 29.09.2012, DECLARING TOTAL INCOME OF RS.1,11,570 UNDER NORMAL PROVISIONS AND A SUM OF RS.2,07,665 UNDER SECTION 115JB OF THE I.T ACT. DUR ING 2 ITA.NO.1276/HYD/2015 M/S. ROSHNI POWERTECH P. LTD., HYDERABAD. THE ASSESSMENT PROCEEDINGS UNDER SECTION 143(3) OF THE ACT, THE A.O. OBSERVED THAT THE ASSESSEE HAS SALE R ECEIPTS OF RS.3,19,75,739 WHICH WAS CLAIMED AS EXEMPT UNDER SECTION 80IA OF THE ACT. THE A.O. THEREFORE, ISSUED A SHOW CAUSE NOTICE TO THE ASSESSEE TO EXPLAIN AS TO HOW T HE SAME IS ALLOWABLE UNDER SECTION 80IA OF THE ACT. TH E LD. COUNSEL FOR THE ASSESSEE FILED A DETAILED REPLY STA TING THAT THE RECEIPT IS ON ACCOUNT OF SALE OF CARBON CREDITS WHICH ARE DIRECTLY RELATED TO THE GENERATION AND SALE OF POWER AND THEREFORE, ELIGIBLE FOR DEDUCTION UNDER SECTION 80IA OF THE ACT. THE A.O. HOWEVER, DID NOT ACCEPT THE ASSES SEES CONTENTION AND HELD IT TO BE NOT ALLOWABLE UNDER SE CTION 80IA AND ACCORDINGLY, BROUGHT IT TO TAX. 3. AGGRIEVED, ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) WHO ALLOWED THE SAME BY FOLLOWING THE DE CISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CAS E OF M/S. MY HOME POWER LTD., REPORTED IN (2014) 365 ITR 82 HOLDING THAT THE RECEIPTS FROM SALE OF EXCESS OF CA RBON CREDITS IS A CAPITAL RECEIPT AND NOT EXIGIBLE TO TA X. AGGRIEVED BY THE RELIEF GIVEN BY THE CIT(A), THE RE VENUE IS IN APPEAL BEFORE US. 4. UPON HEARING BOTH THE PARTIES AND HAVING PERUSED THE MATERIAL ON RECORD, WE FIND THAT THE CI T(A) HAS FOLLOWED THE JURISDICTIONAL HIGH COURT DECISION IN THE CASE OF M/S. MY HOME POWER LTD., (CITED SUPRA) TO G RANT RELIEF TO THE ASSESSEE. THE DECISION OF THE JURISDI CTIONAL HIGH COURT IS BINDING ON ALL THE SUBORDINATE COURTS AND 3 ITA.NO.1276/HYD/2015 M/S. ROSHNI POWERTECH P. LTD., HYDERABAD. TRIBUNALS AND ALSO REVENUE AUTHORITIES IN THE STATE . AS THE DECISION OF CIT(A) IS IN CONSONANCE WITH THE PR ECEDENT ON THE ISSUE, WE SEE NO REASON TO INTERFERE WITH TH E ORDER OF THE CIT(A). THE REVENUES APPEAL IS ACCORDINGLY DISMISSED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13.04.2016. SD/- SD/- (B. RAMAKOTAIAH) (SMT. P. MADHAVI DEVI) ACOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 13 TH APRIL, 2016 VBP/- COPY TO : 1. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE - 1(1), 4 TH FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD. 2. M/S. ACE TYRES LTD., 314 & 315, AMEENPURA ROAD, BACHUPALLY, R.R. DIST., 3. CIT(A) - I, HYDERABAD. 4. PR. CIT - I, HYDERABAD. 5. D.R. ITAT B BENCH, HYDERABAD. 6. GUARD FILE