DCIT, Circle-6(1), Hyderabad V. M/s. Annapurna Builders, Hyderabad

ITA 1316/HYD/2013

• Counselvise Citation: 131622514 RSA 2013
• Duration Of Justice: 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 27-09-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P SOMASEKHAR REDDY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI B.RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO.1316/HYD/13 : ASSTT. YEAR 2010 - 11 DY. COMMISSIONER OF INCOME - TAX CIRCLE 6(1), HYDERABAD V/S. M/S.ANNAPURNA BUILDERS, HYDERABAD ( PAN - AAEFA 9477 F) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P.SOMA SEKHAR REDDY DR RESPONDENT BY : SHRI K.C.DEVDAS DATE OF HEARING 30.01.2014 DATE OF PRONOUNCEMENT 05.02.2014 O R D E R PER SAKTIJIT DEY, JUDICIAL MEMBER: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME - TAX (APPEALS) IV, HYDERABAD, DATED 14.3.2013 FOR THE ASSESSMENT YEAR 20 1 0 - 1 1 . 2. EFFECTIVE GROUNDS O F THE R E VENUE IN THIS APPEAL READ AS FOLLOWS - 1. THE LEARNED CIT(A) ERRED BOTH IN LAW AND ON FACTS. 2. THE LEARNED CIT(A) OUGHT TO HAVE UPHELD THE DECISION OF THE ASSESSING OFFICER WITH REGARD TO THE DISALLOWANCE O F DEDUCTION UNDER SEC.80IA(4)(III) OF THE I.T. ACT SIN C E THE ASSESSEE HAS NO T FULFILLED THE CONDITIONS LAID DOWN IN THE SECTION AND ALSO IN VIEW OF THE VIOLATIONS COMMITTED BY THE ASSESSEE WERE CLEARLY BROUGHT OUT IN THE ASSESSMENT . 3. THE LEARNED CIT(A) ERRED IN HOLDING THAT ONLY TH E CE NTRAL GOVERNMENT IS EMPOWERED TO DENY DEDUCTION U / S. 80IA(4)(III) OF THE I.T. ACT AND A L SO CAN N O T DENY THE DEDUCTION, WHEN THE ASSESSING OFFICER CLEARLY BROUGHT OUT THE VIOL A TIONS COMMI T TED BY THE ASSESSEE AFTER THOROUGH ENQUIRIES. 4. THE LEARNED CIT(A) OUGHT TO HAVE APPRECIATED THE FACT OF THE CA S E IN AS MUCH AS THE NOTIFICATION ISSUED BY THE CE NTRAL GOVERNMENT CLEARLY STIPULATES THAT BENEFIT UNDER S E CTION 80IA(4)(III) IS TO BE AVAILED UPON ADHERING TO TH E CONDITIONS ME N T ION E D IN THE N O TIFICATION AS WELL AS INDUSTRIAL PARK SCHEME, 2002. I TA NO. 1316/ HYD/2013 M/S.ANNAPURNA BUILDERS, HYDERABAD 2 5 3. FACTS OF THE CAS E IN BRIEF LEADING TO TH E FILING OF THE PRESENT APPEAL ARE THAT THE ASSESSEE, A FIRM ENGAGED IN THE BUSIN ES S OF CONSTRUCTION, FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2010 - 11 ON 6.9.2010, DECLARING AN INCOME OF RS.96,39,750, AFTER CLAIMING DEDUCTION OF R S .7,50,47,330 UN D ER S.80IA(4)(III) OF THE ACT. WHILE FRAMING THE ASSESSMENT UNDER S.143(3) OF THE ACT, THE ASSESSING OFFICER OBSERVING THAT THE ASSESSEE HAS NOT FULFILLED THE CONDITIONS STIPULATED FOR AVAILING DEDUCTION UNDER S.80IA(4)(III) OF THE ACT, DISALLOWED THE SAID CLAIM OF THE ASSESSEE AND COMPLETED THE ASSESSMENT ON A TOTAL INCOME OF R S .8,46,.87,080 VIDE ORDER OF ASSESSMENT DATED 25.3.2 013. ON APPEAL, THE CIT(A), FOLLOWING THE DECISIONS OF THE TRIBUNAL IN ASSESSEES OWN CASES FOR ASSESSMENT YEARS 2007 - 08, DELETED THE ADDITION MADE BY THE ASSESSING OFFICER IN THAT BEHALF. 4. AGGRIEVED BY THE RELIEF GRANTED BY THE CIT(A), REVENUE IS IN APPEAL BEFORE US. 5. THE LEARNED DEPARTMENTAL REPRESENTATIVE, THOUGH CONCEDED THAT THE ISSUE STANDS COVERED BY THE DECISIONS OF THE TRIBUNAL IN ASSESSEES OWN CASE, HE NEVERTHELESS SUPPORTING THE ORDER OF THE ASSESSING OFFICER SUBMITTED THAT THE ASSESSEE HAS NOT COMPLIED WITH THE CONDITIONS SPECIFIED IN THE STATUTE FOR BEING ELIGIBLE FOR DEDUCTION UNDER S.80IA(4) ( III) OF THE ACT. HE FURTHER SUBMITTED THAT SURVEY OPERATIONS WERE CONDUCTED UNDER S.133A OF THE ACT ON THE PREMISES OF THE ASSESSEE ON 11.8.2011, WHEN THE CLAIM OF THE ASSESSEE FOR DEDUCTION UNDER S.80IA(4)(III) HAS BEEN EXAMINED, LEADING TO REV E ALATIONS AS TO NON - FULILMENT OF CONDITIONS BY THE ASSESSEE. THE FINDINGS OF SUCH EXAMINATION DURING THE COURSE OF SURVEY HAVE ALSO BEEN COMMUN ICATED TO THE C B DT, RECOMMENDING WITH D RAWAL OF THE APPROVAL GRANTED UNDER S.80IA(4)(III), AND THE NOTIFICATION IN THAT RE G ARD IS AWAITED. I TA NO. 1316/ HYD/2013 M/S.ANNAPURNA BUILDERS, HYDERABAD 3 6. THE LEARNED COUNSEL FOR THE ASSESSEE ON THE OTHER HAND, STRONGLY SUPPORTED THE ORDER OF THE CIT(A) AND SUBMITT ED THAT ITS CLAIM FOR RELIEF UNDER S.80IA(4) HAS CORRECTLY BEEN ALLOWED BY THE CIT(A) AND THE SAM E SHOULD BE UPHELD. 7. WE HEARD BOTH SIDES AND PERUSED THE ORDERS OF THE REVENUE AUTHORITIES. WE FIND THAT THE IMPUGNED ORDER OF THE CIT(A) ACCEPTING THE CLAIM OF THE ASSESSEE FOR RELIEF UNDER S.80IA(4)(III) IS BASED ON THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO.1177/HYD/2011 DATED 30.11.2011 FOR ASSESSMENT YEAR 2007 - 08 , AND THE APPELLATE ORDER OF THE CIT(A) FOR THE ASSESSMENT YEAR 2009 - 10 DATED 17.10.2012 . THE CIT(A) IN THE ORDER IMPUGNED HEREIN ELABORATELY DISCUSSED THE ORDER OF THE TRIBUNAL DATED 30.11.2011, AND OBSERVED THAT THE TRIBUNAL HAS DEALT WITH ALL THE DISCREPANCIES POINTED OUT BY THE ASSESSING OFFICER IN THE IMPUGNED ORDER OF ASSESSMENT FOR THAT YEAR, WITH REGARD TO ASSESSEES CLAIM FOR RELIEF UNDER S.80IA(4)(III). MERE COMMUNICATION OF THE FINDINGS OF THE SURVEY ACTION TO THE CBDT DOES NOT HAVE ANY BEARING ON THE ADMISSIBILITY OF THE ASSESSEES CLAIM IN THE YEAR UNDER APPEAL , INASMUCH AS THE CBDT HAS NEITHER WITHDRAWN THE ALLOWANCE UNDER S.80IA(4)(III) ALREADY GIVEN FOR EARLIER YEARS, NOR WITHDRAWN THE APPROVALS AND NOTIFICATIONS ISSUED IN THAT BEHALF. BE THAT AS IT MAY, THE IMPUGNED ORDER OF THE CIT(A) IS BASED ON THE ORD ER OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2007 - 08. FACTS AND CIRCUMSTANCES OF THE CASE FOR THE YEAR UNDER APPEAL BEING SIMILAR, WE FIND NO INFIRMITY IN THE ACTION OF THE CIT(A). WE ACCORDINGLY UPHOLD THE SAME, REJECTING THE GROUNDS O F THE REVENUE IN THIS APPEAL. 8. IN THE RESULT, REVENUE S APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 05.02.2014 SD/ - SD/ - (B.RAMAKOTAIAH) (SAKTIJIT DEY ) ACCOUNTANT MEMBER JUDICIAL MEMBER DT/ - 05 FEBRUARY, 2014 I TA NO. 1316/ HYD/2013 M/S.ANNAPURNA BUILDERS, HYDERABAD 4 COPY FORWARDED TO: 1. M/S. ANNAPURNA BUILDERS, DOOR NO.6 - 3 - 1192, KUNDAN BAGH, BEUMPET, HYDERABAD 500 016 2 . ASST. COMMISSIONER OF INCOME - TAX, CIRCLE 6( 1 ), HYDERABAD 3. COMMISSIONER OF INCOME - TAX(APPEALS) I V, HYDERABAD 4. COMMISSIONER OF INCOME - TAX I II HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S