Dy. Commissioner of Income Tax , Circle-2(1), Hyderabad V. Kakatiya Cement Sugar & Industries Limited, , Hyderabad

ITA 1598/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 7003 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2021
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Assessment Year: 2016-2017
• Appeal Filed On: 01-11-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: Y V S T SAI
• Section: 143(3); 201; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH B HYDERABAD (THROUGH VIDEO CONFERENCE ) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. NO. 1 598 /HYD./201 9 ASSESSMENT YEAR : 201 6 - 17 DY.CIT , CIRCLE 2(1) VS. KAKATIYA CEMENT SUGAR & HYDERABAD INDUSTRIES LTD. HYDERABAD [PAN: AABCK1868J] (APPELLANT) (RESPONDENT) FOR ASSESSEE: SRI YVST SAI, CIT, DR FOR REVENUE: SRI ROHIT MUJUMDAR , A .R. DATE OF HEARING : 18 /0 3 /2021 DATE OF PRONOUNCEMENT : 09 /04/2021 O R D E R PER S.S. GODARA, J.M. TH IS REVENUES APPEAL FOR AY 201 6 - 17 ARISE FROM CIT(A) - 2 , HYDERABADS ORDER DATED 26.08.2019 IN CASE NO. 10342 /201 8 - 19 U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). HEARD BOTH THE PARTIES. CASE FILES PERUSED. 2. THE REVENUE HAS RAISED THE FOLLOWING SUBSTANTIVE GROUNDS. 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE, WHETHER THE CIT(A) IS CORRECT IN LAW IN HOLDING THAT CO GENERATION OF POWER PLANT IS AN INDEPENDENT UNDERTAKING ELIGIBLE FOR DEDUCTION U/S 80 IA OF THE ACT WHEN THE OPERATION S ARE INTEGRATED WITH THE EXISTING SUGAR PLANT? ITA NO. 1 598 /H/1 9 DYCIT VS. KAKATIYA CEMENT SUGAR & INDUSTRIES LIMITED. AY 2016 - 17 2 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE, WHETHER THE CIT(A) IS CORRECT IN LAW IN HOLDING THAT GENERATION OF LP STEAM WHICH IS A WASTE PRODUCT WITH NO VALUE IS EQUAL TO GENERATION OF POWER WHICH IS ELIGIBLE FOR DEDUCTION U/S 80 IA OF THE ACT? 3 IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WHETHER THE CIT(A) IS CORRECT IN LAW IN HOLDING THAT LP STEAM HAS DEFINITE VALUE WHERE AS SUCH LP STEAM HAS NO MARKET VALUE AND IN FACT A MARKETABLE COMMODITY? 4. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF HEARING. 2.1. IT IS NOT IN DISPUTE THAT THE ISSUE OF ASSESSEE S ELIGIBILITY QUA ALL THE THREE ISSUES RAISED HEREINABOVE AT RE VE NUES BEHEST ALREADY STAND COVERED AS PER THIS TRIBUNALS COORDINATE BENCH ORDERS IN ITA 412/HYD/16 DATED 18.10.2016 FOR AY 2011 - 12 AND ITA NO.346/HYD/15 ORDER DT 30.06.2015 FOR AY 2010 - 11 RESPECTIVELY. 2.2. MR . YVST SAI AT THIS STAGE HIGHLIGHTED THE FACT THAT THIS TRIBUNAL'S COORDINATE BENCH IN ITS DECISION IN ITA 1024/HYD/2013 HAS DIRECTED THE A SSESSING OFFICER TO COMPUTE ASSESSEES DEDUCTION CLAIM AFRESH AS PER LAW. BE THAT AS IT MAY, THE FACT REMAINS THAT THIS TRIBUNAL HAS EXAMINED THE VERY ISSUE OF ASSESSEES ELIGIBILITY QUA SEC. 80 IA DEDUCTION CLAIM WHICH HAS CULMINATED IN RE - COMPUTATION DIRECTIONS ALSO. WE THUS ADOPT JUDICIAL CONSISTENCY AND DECLINE R EVENUE'S ABOVE EXTRACTED GROUNDS IN PRINCIPLE, BUT THE ISSUE OF RE - COMPUTATION IS RESTORED BACK TO THE FILE OF A SSESSING O FFICER AT THE SAME TIME FOR HIS FRESH FACTUAL VERIFICATION. THIS REVENUES APPEAL IS PARTLY ACCEPTED FOR STATISTICAL PURPOSES I N ABOVE TERMS. PRONOUNCED IN OPEN COURT ON 09 TH APRIL, 2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) A CCOUNTANT MEMBER JUDICIAL MEMBER DATED: THE 09 TH APRIL, 2021. * GMV ITA NO. 1 598 /H/1 9 DYCIT VS. KAKATIYA CEMENT SUGAR & INDUSTRIES LIMITED. AY 2016 - 17 3 COPY OF THE ORDER FORWARDED TO: 1. M/S KAKATIYA CEMENT SUGAR & INDUSTRIES LTD., 1 - 10 - 140/1, GURU KRUPA, ASHOK NAGAR, HYDERABAD 500 0 20 , TELANGANA. 2. DY.CIT , CIRCLE 2(1), HYDERABAD, TELANGANA. 2. CIT(A) - 1, HYDERABAD 3. ACIT, RANGE 2 , HYDERABAD. 4. PR.CIT - 1 , HYDERABAD 6. DR, ITAT, HYDERABAD. 7 . GUARD FILE.