M/s Vega Conveyors & Automation Ltd., Hyderabad V. ACIT, Hyderabad

ITA 1312/HYD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3274 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 09-03-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 13-10-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KOMAL JOKPAL
• Assessee Lawyers: Y D BHANU NARAYAN A RAO

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A , HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA NO.1312/HYD/2010 : ASSESSMENT YEAR 2004- 05 M/S. VEGA CONVEYORS & AUTOMATION LTD. HYDERABAD ( PAN AABCV 1639 C ) VS ASST. C OMMISSIONER OF INCOME-TAX, CIRCLE 3(3), HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI Y.D.BHANU NARAYAN A RAO RESPONDENT BY : SMT. KOMAL JOKPAL O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YE AR 2004-05 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME-TAX (APPEALS). 2. THE ONLY GROUND OF APPEAL OF THE ASSESSEE IS AS UNDER- 1 APPELLANT SUBMITS THAT THE COMMISSIONER OF INCOM E TAX APPEALS IS NOT JUSTIFIED IN NOT GRANTING DIRECTIONS TO ALLOW THE DEDUCTION CLAIMED UNDER SECTION 80-IB BY THE APPELL ANT IN THE ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 154. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS FILED AUDIT REPORT IN FORM 10CCB DURING THE COURSE OF ASSESSMENT PROCEEDINGS ON 13.11.2006, ALTHOUGH THE SAME COULD NOT BE FILED AL ONGWITH ITS RETURN OF INCOME. HE SUBMITTED THAT IT IS NOW WELL SETTLED THAT THE A UDIT REPORT IN FORM 10CCB FILED ITA NO.1312/ HYD/2010 M/S. VEGA CONVEYORS & AUTOMATION LTD. HYD 2 DURING THE COURSE OF ASSESSMENT PROCEEDINGS HAS TO BE CONSIDERED BY THE ASSESSING OFFICER, WHILE DECIDING THE ISSUE OF ALLO WABILITY OF DEDUCTION UNDER S.80IB OF THE ACT. HE SUBMITTED THAT THE ASSESSING OFFICER HAS WRONGLY REJECTED THE APPLICATION OF THE ASSESSEE FOR RECTIFICATION U NDER S.154 BY OBSERVING THAT NO MISTAKE IS APPARENT FROM RECORD. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE SUBMIT TED THAT THERE WAS A MISTAKE IN THE AUDIT REPORT IN FORM 10CCB FILED BY THE ASSESSEE AND THE SAID MISTAKE WAS REPEATED IN THE REVISED AUDIT REPORT F ILED BY THE ASSESSEE AND ACCORDINGLY, THE ASSESSING OFFICER WAS JUSTIFIED IN NOT ALLOWING DEDUCTION UNDER S.80IB OF THE ACT TO THE ASSESSEE. 5. IN REPLY TO A SPECIFIC QUERY TO THE BENCH, LEA RNED DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT NO SPECIFIC OPPORTUNI TY WAS GIVEN BY THE ASSESSING OFFICER TO THE ASSESSEE TO RECTIFY THE DEFECT IN TH E REVISED AUDIT REPORT FILED BY IT. HOWEVER, SHE SUBMITTED THAT IT WAS THE LIABILITY OF THE ASSESSEE TO FILE CORRECT AND COMPLETE AUDIT REPORT IN THE PRESCRIBED FORM AND SI NCE THE ASSESSEE HAS FAILED TO DO SO, IT HAS NOT COMPLIED WITH THE STATUTORY PROVI SIONS FOR ALLOWANCE OF DEDUCTION UNDER S.80IB OF THE ACT. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSION AND HA VE PERUSED THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A). WE FIND TH AT THE ASSESSEE HAS FILED THE AUDIT REPORT IN THE PRESCRIBED FORM, VIZ. FORM 10CC B ON 13.11.2006 DURING THE COURSE OF ASSESSMENT PROCEEDINGS. THE ASSESSMENT IN THIS CASE WAS FRAMED ON A LATER DATE ON 28.12.2006. THE ASSESSING OFFICER HA S NOT CONSIDERED THE AUDIT REPORT FILED BY THE ASSESSEE AND HAS WRONGLY OBSERV ED THAT THE AUDIT REPORT IN FORM 10CCB HAS NOT BEEN FURNISHED EITHER ALONGWITH THE RETURN OF INCOME OR DURING THE ASSESSMENT PROCEEDINGS. WE FIND THAT NO OPPORTUNITY TO RECTIFY ANY MISTAKE IN THE PRESCRIBED FORM 10CCB WAS ALLOWED T O THE ASSESSEE. THE LEARNED ITA NO.1312/ HYD/2010 M/S. VEGA CONVEYORS & AUTOMATION LTD. HYD 3 DEPARTMENTAL REPRESENTATIVE APPEARING BEFORE US CO ULD NOT CONTROVERT THE SUBMISSIONS OF THE ASSESSEE THAT THE ASSESSEE HAS FILED THE AUDIT REPORT IN FORM 10CCB ON 13.11.2006 DURING THE COURSE OF THE ASSESS MENT PROCEEDINGS. IN THESE FACTS OF THE CASE, WE ARE OF THE CONSIDERED VIEW THAT IT SHALL BE IN THE INTERESTS OF JUSTICE TO RESTORE THE ISSUE OF GRANT OF ALLOWABILITY OF DEDUCTION CLAIMED UNDER S.80-IB OF THE ACT TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO DECIDE THE SAME DE NOVO AFTER ALLOWIN G REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. ASSESSEE SHALL BE AT LIBE RTY TO FILE REVISED AUDIT REPORT BEFORE THE ASSESSING OFFICER AND THE ASSESSING OFFI CER IS DIRECTED TO EXAMINE THE ISSUE OF ALLOWABILITY OF DEDUCTION UNDER S.80IB ON ITS MERITS AND TO ALLOW THE SAME, IF ALL THE CONDITIONS FOR THE ALLOWANCE THERE OF ARE SATISFIED IN THIS CASE. WE DIRECT ACCORDINGLY. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 3.6.2011 SD/- SD/- (CHANDRA POOJARI) ( G.C. G UPTA) A CCOUNTANT MEMBER V ICE PRESIDENT DATED 3 RD JUNE, 2011 COPY FORWARDED TO: 1. M/S. VEGA CONVEYORS & AUTOMATION LTD. 20/17 PHAS E-II, IDA, CHERLAPALLY, HYDERABAD 500 051 2. ASST. C OMMISSIONER OF INCOME - TAX, CIRCLE 3( 3 ), HYDERABAD 3. CIT (A) - IV , HYDERABAD 4. COMMISSIONER OF INCOME - TAX - III , HYDERABAD 5. THE D.R., ITAT, HYDERABAD. B.V.S.