ACIT, Circle-1, Nizamabad V. M/s. Sarang Hi-Tech Cold Storage (P) Ltd, Nizamabad

ITA 1535/HYD/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61826 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-04-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 25-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V SRINIVAS
• Assessee Lawyers: T CHAITANYA KUMAR
• Section: 80IB; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE CHANDRA POOJARI, ACCOUNTANT MEMBER & SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO.1533 TO 1535/HYD/2011 ASSESSMENT YEARS 2006-07 TO 2008-09 THE ACIT, CIRCLE 1(NIZAMABAD) VS M/S SARANG HI TECH COLD STORAGE P LTD., NIZAMABAD (PAN AAVFS0168A) APPELLANT RESPONDENT APPELLANT BY : SHRI V. SRINIVAS RESPONDENT BY : SHRI T. CHAITANYA KUMAR DATE OF HEARING : 20.3.2012 DATE OF PRONOUNCEMENT : 11.4.2012 ORDER PER ASHA VIJAYARAGHAVAN, JM . THESE THREE APPEALS PREFERRED BY THE REVE NUE ARE DIRECTED AGAINST THE COMMON ORDERS PASSED BY THE CIT(A) VI, HYDERABAD DATED 27.6.2011 AND PERTAINS TO THE ASSESSMENT YEA RS 2006-07, 2007-08 & 2008-09. SINCE ISSUES INVOLVED IN THESE THREE APPEALS ARE COMMON IN NATURE, THEY ARE CLUBBED, HEA RD AND DISPOSED OFF VIDE THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE H EREIN IS A COMPANY IN WHICH PUBLIC ARE NOT SUBSTANTIALLY INTER ESTED AND IS ENGAGED IN THE BUSINESS OF PROVIDING COLD STORAGE C HAIN FACILITY FOR THE AGRICULTURAL PRODUCE. THE ASSESSEE PROVIDE S THE FOLLOWING FACILITIES FOR STORAGE OF AGRICULTURAL PRODUCE IN R EFRIGERATED CHAMBERS: ITA NO.1533 TO 1535/H/2011 SARANG HI-TECH COLD STORAGE P LTD., NIZAMABAD. 2 A) UNLOADING OF THE COMMODITIES FROM THE CARRIAGES ON THE PLATFORM AT THE PREMISES OF THE COLD STORAGE UNIT. B) ANALYSIS OF THE COMMODITIES SO AS TO DECIDE WHET HER THE FUMIGATION OF THE STOCKS IS NECESSARY OR NOT AND TO FUMIGATE THE STOCKS WHEREVER NECESSARY. C) TO LAY THE STOCKS IN THE PRE COOLING COVERED PLA TFORM WITH FAN FACILITY SO AS TO BRING DOWN THE TEMPERATURE OF THE COMMODITIES BEFORE THEY ARE SHIFTED TO THE COOL CHAMBERS FOR ST ORAGE. D) WHEREVER THE STOCKS RECEIVED FOR STORAGE CONTAIN HIGH PERCENTAGE OF MOISTURE WHICH IS NOT SUITABLE FOR ST ORAGE, ARRANGE FOR THE DRYING OF SUCH STOCKS ON THE DRYING PLATFOR MS WITHIN THE PREMISES. E) THE COMMODITIES LIKE CHILLIES, TURMERIC NEED GRA DING AND SUCH FACILITY IS ALSO PROVIDED BY THE ASSESSEE. F) PROVIDING THE FACILITY OF BADLA FOR MOVEMENT OF THE STOCKS DURING THE PROCESS DURING THE PROCESS OF STORAGE, SO THAT THE STOCKS ARE NOT KEPT IN THE SAME POSITION. G) AT THE TIME OF ISSUING THE STOCKS, THE STOCKS AR E FIRSTLY SHIFTED FROM COOLING CHAMBERS TO THE COVERED PLATFORM SO AS TO BRING THEM TO THE NORMAL TEMPERATURE. H) HANDING OVER THE STOCKS TO THE CONCERNED. I) IN THE PROCESS OF UNDERTAKING THE CHAIN OF SERVI CES, THE ASSESSEE MAINTAINS VARIOUS RECORDS AND REGISTERS SUCH AS GOO DS INWARDS ITA NO.1533 TO 1535/H/2011 SARANG HI-TECH COLD STORAGE P LTD., NIZAMABAD. 3 REGISTER, OUTWARDS REGISTER, PARTY WISE STOCK REGIS TER, REGISTER FOR NOTING THE IDENTIFICATION OF EACH LOT. THE ASSESSE E MAINTAINS IDENTITY OF THE STOCKS AND THE STOCKS CAN BE LOCATE D AT ANY STAGE. 3. THE CHAIN OF FACILITIES ARE PROVIDED AT THE PREMISES OF THE ASSESSEE FOR STORAGE OF VARIOUS AGRICULTURAL PRODUC E LIKE CHILLIES, TURMERIC, TAMARIND, MAIZE, JOWAR, PADDY SEED, BLACK GRAM ETC. 4. FOR THE ASSESSMENT YEARS UNDER APPEAL, THE ASSESSEE HEREIN FILED THE RETURN OF INCOME ADMITTING INCOME AFTER CLAIMING DEDUCTION U/S 80IB. THE ASSESSING OFFICER ISSUED N OTICE U/S 148 IN RESPONSE TO WHICH THE ASSESSEE FILED THE REV ISED RETURN OF INCOME CLAIMING DEDUCTION U/S 80(B)(11). SUBSEQUEN TLY THE ASSESSING OFFICER ISSUED NOTICES U/S 143(2) AND 141 (1) REQUIRING THE ASSESSEE TO EXPLAIN AS TO WHY DEDUCTION CLAIMED U/S 80(B)(11) SHOULD NOT BE WITHDRAWN AS ACCORDING TO T HE ASSESSING OFFICER THE ASSESSEE IS NOT CARRYING ON ANY ACTIVIT Y OF COLD CHAIN FACILITY. THE ASSESSEE FILED DETAILED EXPLANATION MENTIONING THE ACTIVITIES AND THE FACILITIES PROVIDED. THE ASSESS ING OFFICER, HOWEVER, DID NOT ACCEPT THE SAID EXPLANATION ON THE GROUND THAT THE COLD CHAIN FACILITY IS COMPLETE ONLY IF THE TRA NSPORT FACILITY IS ALSO PROVIDED. ACCORDING TO THE ASSESSEE TO ALLOW DEDUCTION U/S 80IB IT IS ENOUGH IF HE MAINTAINS EITHER THE COLD S TORAGE FACILITY OR COLD TRANSPORT FACILITY. THE WORD COLD CHAIN F ACILITY AS DEFINED IN SECTION 80IB(14)(AA) CLEARLY PROVIDES TH AT IS ENOUGH IF IT IS A STORAGE FACILITY OR A TRANSPORT FACILITY AN D BOTH THE FACILITIES NEED NOT EXIST. THE INCOME FROM EITHER OF THE TWO ACTIVITIES WOULD BE EXEMPT AND THE ASSESSEE IS MAINTAINING STO RAGE FACILITY. THE ASSESSEE SUBMITTED THAT IS ENTITLED FOR DEDUCTION U/S 80IB(11) OF THE ACT. ITA NO.1533 TO 1535/H/2011 SARANG HI-TECH COLD STORAGE P LTD., NIZAMABAD. 4 5. THE LEARNED AR OF THE ASSESSEE HAS SUBMITTE D THAT SIMILAR ASSESSMENT HAS BEEN MADE FOR ASSESSMENT YEAR 2005-0 6 FOR WHICH THE CIT(A), HYDERABAD VIDE ORDER IN APPEAL NO .237/09- 10(CIT(A) VI/2010-11 DATED 15.6.2010 HAD DECIDED T HE ISSUE IN FAVOUR OF THE ASSESSEE RELYING IN TURN ON THE DECIS ION OF THE TRIBUNAL AGRA BENCH IN THE CASE OF ITO VS. AMBICA S HEET GRAH LTD. REPORTED IN 314 ITR (AT) 123). THE FACTS BEIN G IDENTICAL IT WAS SUBMITTED THAT THIS GROUND IS TO BE DECIDED IN FAVOUR OF THE ASSESSEE, RESPECTFULLY FOLLOWING THE DECISION OF TH E ORDER CITED ABOVE. 6. WE FIND THAT FOR THE ASSESSMENT YEAR 2005-06 , IN THE APPEAL FILED BY THE REVENUE, WE HAVE DECIDED AS FOL LOWS: WE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE ISSUE INVOLV ED IN THIS APPEAL, AS TO WHETHER THE ASSESSEE, MAINTAINING COL D CHAIN STORAGE FACILITY, IS ELIGIBLE FOR DEDUCTION U/S 80I B OF THE ACT, IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECIS ION OF THE AGRA BENCH OF THE TRIBUNAL IN THE CASE OF PALIWAL I CE & COLD STORE V/S ITO(ITA NO.231/AGR./2007 DATED 24.10.2008 ), A COPY OF WHICH HAS ALSO BEEN FILED BEFORE US. IT HA S ALSO BEEN BROUGHT TO OUR NOTICE THAT THE SAID DECISION O F THE AGRA BENCH OF THE TRIBUNAL HAS ALSO BEEN AFFIRMED BY THE HONBLE ALLAHABAD HIGH COURT, VIDE ITS ORDER DATED 3.11.201 1 IN INCOME TAX APPEAL NO.288 OF 2009. IN VIEW OF THE M ATTER AND IN THE ABSENCE OF ANY DECISION TO THE CONTRARY BROUGHT TO OUR NOTICE, WE FIND NO INFIRMITY IN THE ORDER OF THE CIT(A). WE ACCORDINGLY UPHOLD THE SAME REJECTING THE GROUND S OF THE REVENUE IN THIS APPEAL. ITA NO.1533 TO 1535/H/2011 SARANG HI-TECH COLD STORAGE P LTD., NIZAMABAD. 5 7. RESPECTFULLY FOLLOWING OUR DECISION IN ASS ESSEES OWN CASE FOR EARLIER YEARS, THE REVENUES APPEALS ARE DISMIS SED. 8. IN THE RESULT, ALL THE THREE APPEALS FILED B Y THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON: 11. 4.2012 SD/- SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER DATED THE 11 TH APRIL, 2012 COPY FORWARDED TO: 1. THE ACIT, CIRCLE-1 AAYAKAR BHAWAN, SUBHASH NAGAR, NIZAMABAD 2. M/S SARANGH HIGH TECH COLD STORAGE (P) LTD., D.NO. 5-6- 570/7, HYDERABAD ROAD, NIZAMABAD 3. THE CIT(A)-VI, HYDERABAD 4. THE CIT, HYDERABAD 5. THE DR, ITAT, HYDERABAD NP/