Dy. Commissioner of Income Tax, Cir-16(2), Hyderabad V. PES Engineers Private Limited, Hyderabad

ITA 1428/Hyd/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2696 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 10-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SURESH BABU
• Assessee Lawyers: V RAGHAVENDRA RAO
• Keywords: Revised return
• Section: 80IB

Judgement Text

ITA NO 1428 OF 2017 PES ENBGINEERS P LTD HYDERABAD. PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO.1428/HYD/2017 (ASSESSMENT YEAR: 2012-13) DCIT, CIRCLE 16 (2) HYDERABAD VS M/S. PES ENGINEERS P LTD HYDERABAD PAN: AABCP 4220 B (APPELLANT) (RESPONDENT) FOR REVENUE: SHRI B. SURESH BABU, DR FOR ASSESSEE : SHRI V. RAGHAVENDRA RAO O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS REVENUES APPEAL FOR THE A.Y 2012-13. IN TH IS APPEAL, THE ASSESSEE IS AGGRIEVED BY THE ORDER OF T HE LEARNED CIT (A)-4, HYDERABAD, DATED 24.04.2015. THE REVENUE H AS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, AND IN LAW, THE LEARNED CIT (A) ERRED IN DELETING THE DISALLOWANCE OF DEDUCTION CLAIMED U/S 80IB OF RS.57,32,244/- 2. THE CIT(A) ERRED IN NOT APPRECIATING THE FACT THAT THE ACTIVITY OF THE ASSESSEE IS NOT OF MANUFACTURING AN ARTICLE OR THING. 3. THE CIT (A) ERRED IN IGNORING THE FACT THAT THE REVENUES APPEALS AGAINST THE ITATS ORDERS ON DATE OF HEARING: 25.01.2018 DATE OF PRONOUNCEMENT: 2 5 . 0 1 .2018 ITA NO 1428 OF 2017 PES ENBGINEERS P LTD HYDERABAD. PAGE 2 OF 3 IDENTICAL ISSUE FOR A.YS 2009-10 AND 2010-11 ARE PENDING BEFORE THE HON'BLE HIGH COURT. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE CO MPANY ENGAGED IN THE BUSINESS OF FABRICATION AND ERECTION , FILED ITS E- RETURN OF INCOME FOR THE A.Y 2012-13 ON 28.09.2012 ADMITTING TOTAL INCOME OF RS.14,30,51,550 AND THEREAFTER FILE D A REVISED RETURN OF INCOME ON 07.03.2013 ADMITTING TOTAL INCO ME OF RS.3,53,68,940 AFTER CLAIMING DEDUCTION OF RS.57,32 ,244 U/S 80IB OF THE ACT. DURING THE ASSESSMENT PROCEEDINGS U/S 1 43(3) OF THE ACT, THE AO OBSERVED THAT THE ASSESSEE IS HAVING SI X UNITS AND THAT THE ASSESSEE HAS CLAIMED DEDUCTION U/S 80IB OF THE ACT AT 30% FOR ALL THE SIX UNITS. THE ASSESSEE WAS THEREFO RE, ASKED TO JUSTIFY THE DEDUCTION U/S 80IB OF THE ACT AS ACCORD ING TO THE AO, THE ASSESSEE HAS NOT FULFILLED THE CONDITION OF MAN UFACTURE OR PRODUCTION OF ANY ARTICLE OR THING. THE ASSESSEE FI LED ITS REPLY. THE AO WAS HOWEVER, NOT SATISFIED AND DISALLOWED THE CL AIM U/S 80IB OF THE ACT ON THE GROUND THAT THE ASSESSEE HAS NOT FULFILLED THE ESSENTIAL CONDITION OF MANUFACTURE OR PRODUCTION OF ANY ARTICLE OR THING. AGGRIEVED, THE ASSESSEE FILED AN APPEAL BEFO RE THE CIT (A) WHO ALLOWED THE SAME BY FOLLOWING THE DECISION OF T HE ITAT IN THE ASSESSEES OWN CASE FOR THE EARLIER A.Y 1997-98 TO 2020- 11.AGAINST THE RELIEF GRANTED BY THE CIT (A), THE R EVENUE IS IN APPEAL BEFORE US AND ONE OF THE GROUND IS THAT THE REVENUE HAS NOT ACCEPTED THE ITATS DECISION AND HAS APPEALED B EFORE THE HON'BLE HIGH COURT OF TELANGANA & ANDHRA PRADESH. 3. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE FIND THAT THE CIT (A) HAS FOLLOWED TH E DECISION OF THE ITA NO 1428 OF 2017 PES ENBGINEERS P LTD HYDERABAD. PAGE 3 OF 3 ITAT IN THE ASSESSEES OWN CASE IN THE EARLIER A.YS AND THE SAID ORDERS OF THE ITAT HAVE NOT BEEN SET ASIDE OR SUSPE NDED BY THE JURISDICTIONAL HIGH COURT. THEREFORE, THEY DO NOT L OSE THEIR PRECEDENTIAL VALUE AND THUS WE SEE NO REASON TO INT ERFERE WITH THE ORDER OF THE CIT (A) WHICH HAS BEEN PASSED FOLLOWIN G THE ORDERS OF THE ITAT IN THE ASSESSEES OWN CASE ON SIMILAR SET OF FACTS. 4. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH JANUARY, 2018. SD/- SD/- (B. RAMAKOTAIAH) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 25 TH JANUARY 2018. VINODAN/SPS COPY TO: 1 DCIT, CIRCLE 16(2) 2 ND FLOOR, B BLOCK, IT TOWERS, AC GUARDS, MASAB TANK, HYDERABAD 2 M/S. PES ENGINEERS P LTD, NO.6-3-1090/1/A, 1 ST FLOOR, PANCOM CHAMBERS, RAJBHAVAN ROAD, SOMAJIGUDA, HYDERABAD 3 CIT (A)-4 HYDERABAD 4 PR. CIT 4 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER