M/s. GE Thermometrics India Private ltd, Bangalore V. DCIT, Bangalore

ITA 151/BANG/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5566 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 18-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ETWA MUNDA CITII
• Assessee Lawyers: K K CHYTHANYA
• Section: 143(3); 10B

Judgement Text

PAGE 1 OF 4 ITA NO.1 51/BANG/2011 1 IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH B BEFORE SHRI GEORGE GEORGE K, J.M. AND SHRI A MOHAN ALANKAMONY, A.M ITA NO.151/BANG/2011 (ASSESSMENT YEAR 2006-07) M/S GE THERMOMETRICS INDIA PRIVATE LIMITED, (PRESENTLY EXA THERMOMETRICS INDIA PVT. LTD.), OFFICE NO.181, LAKE SHORE ROAD, BTM LAYOUT II STAGE, BANGALORE-76. - APPELLANT VS THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-11(3), BANGALORE. - RESPONDENT APPELLANT BY : SHRI K K CHYTHANYA, ADVOCATE RESPONDENT BY : SHRI ETWA MUNDA, CIT-II ORD ER PER GEORGE GEORGE K : THIS APPEAL INSTITUTED BY THE ASSESSEE IS DIRECTE D AGAINST THE ORDER OF LEARNED CIT(A)-I, BANGALORE DA TED 06/01/2011. THE ASST. YEAR CONCERNED IS 2006-07. 2. THE SOLITARY ISSUE INVOLVED IN THIS CASE IS WHET HER THE CIT(A) IS JUSTIFIED IN UPHOLDING THE ORDER OF THE A O IN INVOKING SECTION 10B(9) OF THE I T ACT BY REJECTING VARIOUS CONTENTIONS RAISED BY THE ASSESSEE. PAGE 2 OF 4 ITA NO.1 51/BANG/2011 2 3. BRIEFLY STATED THE FACTS ARE AS FOLLOWS:- THE ASSESSEE IS A COMPANY. IT IS ENGAGED IN THE MANUFACTURE AND SALE OF PTC & NTC THERMISTORS, PROB ES AND SIMILAR PRODUCTS. FOR THE ASST. YEAR, THE ASSESSEE COMPANY FILED ITS RETURN OF INCOME ON 28.11.2006 DECLARING A TOTA L INCOME OF RS.1,40,14,079/-. AFTER PROCESSING THE RETURN U/S 143(1) ON 5.10.2007, THE ASSESSMENT WAS TAKEN UP FOR SCRUTINY U/S 143(3) BY ISSUANCE OF NOTICE U/S 143(2) OF THE ACT ON 5.11.20 07. THEREAFTER, THE AO PASSED AN ORDER OF ASSESSMENT U/S 143(3) BY D ISALLOWING DEDUCTION U/S 10B OF RS.8,45,95,577/-. 4. AGGRIEVED BY THE SCRUTINY ASSESSMENT COMPLETED, T HE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE FI RST APPELLATE AUTHORITY. 5. IT WAS SUBMITTED BEFORE THE FIRST APPELLATE AUT HORITY THAT THE CASE OF THE ASSESSEE WAS COVERED IN ITS FA VOUR BY THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASST. YEARS 2003-04 AND 2004-05. 6. THE CIT(A), AFTER ELABORATELY DISCUSSING THE ISS UE FROM PARAS 8 TO 11, DISMISSED THE APPEAL OF THE ASSESSEE . 7. THE ASSESSEE BEING AGGRIEVED BY THE ORDER OF THE FIRST APPELLATE AUTHORITY IS IN APPEAL BEFORE US. PAGE 3 OF 4 ITA NO.1 51/BANG/2011 3 8. THE LEARNED AR REITERATED THE SUBMISSIONS MADE BEFORE THE CIT(A) AND SUBMITTED THAT THE CIT(A) IS NOT JUSTIFIED IN NOT FOLLOWING THE DECISION OF THE TRIBUNAL IN AS SESSEES OWN CASE IN ITA NOS.257 & 258/BANG/2008 DATED 30.5.2008 AND IN ITA NO.97/BANG/2008 DATED 5.4.2009, WHEREIN THE TRIBUNA L ALLOWED THE APPEAL AND HELD THAT THE FACTS OF THE ASSESSEE COMP ANY DID NOT FALL WITHIN THE PURVIEW OF SECTION 10B(9). 9. THE LEARNED DR ON THE OTHER HAND SUPPORTED THE FINDINGS/CONCLUSION OF THE FIRST APPELLATE AUTHORIT Y. HE ALSO SUBMITTED THAT THE ITAT ORDER IN ASSESSEES OWN CAS E (ITA NO.257 & 258/08 DT.30.5.2008) HAS NOT ATTAINED FINALITY SIN CE THE REVENUE HAS FILED APPEAL BEFORE THE HONBLE HIGH COURT. 10. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSE D THE MATERIALS ON RECORD. THE ISSUE IN QUESTION IS C OVERED BY THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASST. YEARS 2003-04 AND 2004-05 IN ITA NOS.257 & 258/BANG/2008 VIDE ORDER DATED 30 TH MAY, 2008 AND IN ITA NO.97/BANG/2008 FOR THE ASST. YEAR 2005-06 VIDE ORDER DATED 8 TH APRIL, 2009 IN FAVOUR OF THE ASSESSEE. COPY OF THE ORDER OF THE TRIBUNAL IN ITA NOS.257 & 258/2008 DATED 30.5.2008 IS ANNEXED (ANNEXURE I) FO R READY REFERENCE. SINCE THE FACTS IN THIS CASE ARE IDENTI CAL TO THE FACTS CONSIDERED BY THE TRIBUNAL IN ITA NOS.257 & 258/2008 , FOLLOWING THE COORDINATE BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE CITED PAGE 4 OF 4 ITA NO.1 51/BANG/2011 4 SUPRA, WE ALLOW THE ASSESSEES CLAIM OF DEDUCTION U /S 10B OF THE ACT. IT IS ORDERED ACCORDINGLY. 11. IN THE RESULT, THE APPEAL FILED BY THE ASSESSE E IS ALLOWED. ENCLS : COPY OF THE ORDER AS MENTIONED ABOVE THE ORDER PRONOUNCED ON FRIDAY, THE 10 TH DAY OF JUNE, 2011 AT BANGALORE. SD/- SD/- (A MOHAN ALANKAMONY) (GEORGE GEORGE K) ACCOUNTANT MEMBER JUDICIAL MEMBER COPY TO : 1. THE REVENUE 2. THE ASSESSEE 3. THE C IT CONCERNED. 4. THE CIT(A) CONCERNED. 5. DR 6. GF MSP/8/6. BY ORDER ASST. REGISTRAR, ITAT, BANGALORE.