DCIT, Hyderabad V. M/s.Meenakshi Infrastructures (P) Ltd, Hyderabad

ITA 132/HYD/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2860 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 07-07-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 27-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S RAMA RAO
• Assessee Lawyers: M H NAIK

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO.132/HYD/2011 (ASSESSMENT YEAR 2007-08) DY. COMMISSIONER OF INCOME- TAX CIRCLE 16(2), HYDERABAD V/S M/S. MEENAKSHI INFRASTRUCTURES (P)LTD., HYDERABAD (PAN AAECM 0206 D) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.RAMA RAO RESPONDENT BY : SHRI M.H.NAIK DR DATE OF HEARING 17.06.2013 DATE OF PRONOUNCEMENT 17.6.2013 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS IS AN APPEAL BY THE REVENUE, DIRECTED AGAINS T THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) V, HYDE RABAD DATED 4.11.2010 FOR THE ASSESSMENT YEAR 2007-08. 2. EFFECTIVE GROUNDS OF THE REVENUE IN THIS APPEAL READ AS FOLLOWS- 1) THE ORDER OF CIT(A) IS ERRONEOUS IN LAW AND ON FACTS OF THE CASE . 2) THE LEARNED CIT(A) OUGHT TO HAVE RECOGNIZED THAT T HE ASSESSEE HAS NOT FULFILLED THE CONDITION STIPULATED IN CLAUSE-7 TO CBDT NOTIFICATION NO.216/206 IN F.NO.178/72/2006-IT-1 . 3) THE LEARNED CIT(A) SHOULD HAVE NOTICED THAT ASSESS EE TRANSFERRED THE BUILT UP SPACE ALONG WITH AM ENITIES/FACILITIES OF ITS NOTIFIED INDUSTRIAL PARK (E-PARK) IN A STAGGERED MA NNER, WHICH CONTEMPLATES ABOUT THE TRANSFER OF OWNERSHIP AS WELL AS OPERATION AND MAINTENANCE OF THE TRANSFERRED SPACE OF THE INDUSTRIAL PARK. AS SUCH, THE ACTION OF THE ASSESSE E BY TRANSFERRING A NOTIFIED PROJECT ELIGIBLE FOR DEDUCT ION U/S 80~IA ON A PIECEMEAL BASIS VITIATES THE BASIC INTENTION/P URPOSE FOR WHICH THE PROJECT HAS BEEN NOTIFIED. THE BUSINESS O F THE ITA NO.132/HYD/11 M/S. MEENAKSHI INFRASTRUCTURES (P)LTD., HYDERABAD 2 INDUSTRIAL PARK SHOULD BE VIEWED IN ITS ENTIRETY AN D NOT ON A PIECEMEAL BASIS. 4) THE LEARNED CIT(A) SHOULD HAVE APPRECIATED THAT THE TRANSFER CONTEMPLATED IN THE FIRST PROVISO TO CLAUSE (III) O F SUB-SECTION (4) OF SECTION 80-IA IS NOT A TRANSFER OF INDUSTRIA L PARK ' ON A PIECEMEAL BASIS BUT TRANSFER OF THE INDUSTRIAL PARK IN ITS ENTIRETY. THE TRANSFER OF INDUSTRIAL PARK ON A PIEC EMEAL BASIS CREATES A SITUATION WHERE BOTH THE ASSESSEES [L . E., DEVELOPER- ASSESSEE AND TRANSFEREE-ASSESSEE] CLAIMING THE DEDU CTION U/S 80-IA IN RESPECT OF ONE ELIGIBLE BUSINESS L . E., INDUSTRIAL PARK (E - PARK). 5) . 3. AFTER HEARING BOTH THE PARTIES, WE ARE OF THE OPINION THAT THIS ISSUE IS COVERED BY THE ORDER OF THE TRIBUNAL IN AS SESSEES OWN CASE FOR THE ASSESSMENT YEAR 2006-07 VIDE ORDER DATED 21.10. 2010 IN ITA NO.313/HYD/2010,WHREIN THE TRIBUNAL CONSIDERED THE ALLOWABILITY OF DEDUCTION UNDER S.80IA, WITH REGARD TO THE VERY SAM E E-PARK SITUATED AT JUBILEE GARDEN, KONDAPUR, CYBERABAD, HYDERABAD, LEA SED/SOLD TO M/S. TATA CONSULTANCY SERVICES; M/S. EXCELLENCE DATA RES EARCH PVT. LTD.; M/S. VIJAY INFOTECH; M/S. DMV BUSINESS & MARKETING RESEA RCH PVT. LTD., AND M/S. COGNIZANT TECHNOLOGIES AND CONCLUDED THAT THE ASSESSEE IS ENTITLED FOR DEDUCTION UNDER S.80IA(4)(III) OF THE ACT. BEIN G SO, THIS IS THE SUBSEQUENT YEAR OF ASSESSMENT RELATING TO THE SAME PROJECT, AND SO, THE ASSESSEE IS ENTITLED FOR DEDUCTION UNDER S.80IA(4) OF THE ACT. IN THIS VIEW OF THE MATTER, AND IN VIEW OF THE FACT THAT THE LEA RNED DEPARTMENTAL REPRESENTATIVE FAILED TO ESTABLISH THAT THIS IS A D IFFERENT PROJECT THAN THE ONE CONSIDERED BY THE TRIBUNAL IN ITS DECISION FOR ASSESSMENT YEAR 2006- 07, WE FIND NO INFIRMITY IN THE ACTION OF THE CIT(A ) IN ACCEPTING THE CLAIM OF THE ASSESSEE FOR DEDUCTION UNDER S.80IA(4) OF TH E ACT. WE ACCORDINGLY UPHOLD THE IMPUGNED ORDER OF THE CIT(A) AND REJECT THE GROUNDS OF THE REVENUE IN THIS APPEAL. ITA NO.132/HYD/11 M/S. MEENAKSHI INFRASTRUCTURES (P)LTD., HYDERABAD 3 4. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE COURT AT THE CONCLUSION O F HEARING ON 17.06.2013 SD/ - (SAKTIJIT DEY) SD/ - (CHANDRA POOJARI) JUDICIAL MEMBER. ACCOUNTANT MEMBER. DT/- 17 TH JUNE, 2013 COPY FORWARDED TO: 1. M/S. MEENAKSHI INFRASTRUCTURES (P)LTD., 8 - 2 - 418, MEENAKSHI HOUSE, ROAD NO.7, BANJARA HILLS, HYDERABA D-34 2. DY. COMMISSIONER OF INCOME - TAX CIRCLE 16(2), HYDERABAD 3. 4. 5. COMMISSIONER OF INCOME-TAX(APPEALS) V HYDERABAD COMMISSIONER OF INCOME-TAX IV HYDERABAD THE DEPARTMENTAL REPRESENTATIVE, ITAT HYDERABAD B.V.S.