The Income-tax Officer, Jammu V. M/s. Fine Aromatics, Jammu

ITA 161/ASR/2012

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7723 (ITAT-AMRITSAR)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 27-06-2012
• Assessment Year: 2009-2010
• Appeal Filed On: 01-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R L CHHANALIA
• Keywords: Capital receipt
• Section: 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NO. 168(ASR)/2012 ASSESSMENT YEAR:2009-10 PAN :AAGFJ0928G INCOME TAX OFFICER, VS. M/S. JK PETRO CHEMICALS, UDHAMPUR. UDHAMPUR. (APPELLANT) (RESPONDENT) I.T.A. NO. 163(ASR)/2012 ASSESSMENT YEAR:2009-10 PAN :ABBFS4825M INCOME TAX OFFICER, VS. M/S. SHIVA MINT INDUSTRIES , WARD-1(3), JAMMU.. JAMMU. (APPELLANT) (RESPONDENT) I.T.A. NO. 161(ASR)/2012 ASSESSMENT YEAR:2009-10 PAN :AABFF4186D INCOME TAX OFFICER, VS. M/S. FINE AROMATICS, WARD-1(1). JAMMU. (APPELLANT) (RESPONDENT) I.T.A. NO. 160(ASR)/2012 ASSESSMENT YEAR:2009-10 PAN :AAEFJ6391K INCOME TAX OFFICER, VS. M/S.AMBEY AROMATICS, WARD-1(1), JAMMU. JAMMU. (APPELLANT) (RESPONDENT) 2 I.T.A. NO. 155(ASR)/2012 ASSESSMENT YEAR:2008-09 PAN :AABCH7025C INCOME TAX OFFICER, VS. M/S. HARI KRIPA PERFUMES ( P) LTD. WARD-1(1). JAMMU. JAMMU. (APPELLANT) (RESPONDENT) APPELLANT BY:SH. R.L. CHHANALIA, DR RESPONDENT BY: NONE DATE OF HEARING:27/06/2012 DATE OF PRONOUNCEMENT:03/07/2012 ORDER PER BENCH ; THESE FIVE APPEALS FILED BY THE REVENUE INVOLVING COMMON ISSUES WERE HEARD TOGETHER AND ARE BEING DISPOSED O FF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. IN ALL THE APPEALS, GROUNDS 1 TO 4 ARE COMMON, WHICH READ, AS UNDER:- 1 ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. C IT(A) WAS RIGHT IN ALLOWING RELIEF ON ACCOUNT OF DEDUCTION U/ S 80IB ON CENTRAL EXCISE DUTY REFUND BY RELYING UPON ORDERS OF HON'BL E HIGH COURT IF J&K, JAMMU WHICH HAS BEEN DELIVERED NOT ON MERITS O F THE ISSUE BUT HOLDING THE RECEIPT TO BE A CAPITAL RECEIPT ONLY BE CAUSE THE POLICY UNDER WHICH THE SAME WAS PAID ENVISAGED TACKLING TH E UNEMPLOYMENT IN THE STATE WHICH CANNOT BE SAID TO BE A GOOD TEST FOR DECIDING WHETHER A RECEIPT IS A TRADING RECEIPT OR A CAPITAL RECEIPT. 2. ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. C IT(A) WAS RIGHT IN FACTS AND CIRCUMSTANCES AND IN LAW IN NOT APPRECIATING THE JUDGMENTS OF HON'BLE SUPREME COURT OF INDIA IN THE CASE OF PONNI SUGAR & SAWHNEY STEEL AND PRESS WORKS LTD, WHEREIN THE HON'BLE 3 SUPREME COURT HAD HELD SUCH RECEIPTS TO BE THE REVE NUE RECEIPTS IN AS MUCH AS IN THAT CASE PAYMENTS WERE MADE ONLY AFTER THE INDUSTRIES HAD BEEN SET UP AND PAYMENTS WERE NOT MADE FOR PURPOSE OF SETTING UP OF INDUSTRIES. 3. ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. C IT(A) WAS RIGHT IN FACTS AND CIRCUMSTANCES AND IN LAW IN NOT CONSIDERING THE DECISION IN THE CASE OF SEAHAM HARBOUR DOCK COMPANY WHICH LAYS DOWN TWO IMPORTANT TESTS FOR DETERMINING WHETHER RE CEIPTS IS A TRADING RECEIPT OR A CAPITAL RECEIPT. 4. ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. C IT(A) WAS RIGHT IN FACTS AND CIRCUMSTANCES AND IN LAW IN NOT APPRECIATING AND APPLIED THE PURPOSE TEST AS LAID DOWN BY THE JUDGME NTS OF THE HON'BLE SUPREME COURT. IN THE CASE OF ASSESSEE, THE MONEY RECEIVED BY THE ASSESSEE ON ACCOUNT OF REFUND OF CENTRAL EXCISE WAS NOT SUPPOSED TO BE SPENT IN A PARTICULAR MANNER FOR PURPOSE OF SUBS TANTIAL EXPANSION OF THE INDUSTRY. 3. NOTICE OF HEARING WAS ISSUED TO ALL THE ASSESSEE S BY RPAD FOR 27.06.2012, DESPITE THE FACT, NEITHER THE ASSESSEES NOR THEIR AUTHORIZED REPRESENTATIVES APPEARED ON THE DATE OF HEARING.. T HE ASSESSEES HAVE EVEN NOT EVEN FILED ANY APPLICATION FOR ADJOURNMENT. KE EPING IN VIEW THE FACTS AND CIRCUMSTANCES, WE ARE OF THE VIEW THAT NO USEFU L PURPOSE WOULD BE SERVED IF THE NOTICES ARE ISSUED TO THE ASSESSEES A GAIN AND AGAIN. THEREFORE, WE ARE DISPOSING OF THE PRESENT APPEALS EX-PARTE AF TER HEARING THE LD. DR. 4. BRIEFLY, THE GROUNDS NO. 1 TO 4 REVOLVE AROUND T HE ISSUE OF EXCISE DUTY REFUND WHICH WAS CLAIMED AS EXEMPT IN VIEW OF SECTION 80IB OF THE INCOME-TAX ACT, 1961 (IN SHORT THE ACT) BEING ALL OWABLE TO THE ASSESSEE. THE AO HAS NOT ALLOWED THE CLAIM OF THE ASSESSEE AN D HELD THAT THE RECEIPTS 4 ON ACCOUNT OF EXCISE DUTY REFUND GRANTED IN VIEW OF GOVERNMENT NOTIFICATION WAS NOT ELIGIBLE TO BE CONSIDERED FOR THE PURPOSE OF DEDUCTION U/S 80IB OF THE ACT. 5. ON APPEAL, THE LD. CIT(A) FOLLOWING THE DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF SHREE BALA JI ALLOYS V. CIT AND ANOTHER (2011) 333 ITR 335 (J&K) HELD THAT THE EXCI SE DUTY REFUND IS TO BE TREATED AS CAPITAL RECEIPT AND NOT LIABLE TO BE T AXED. NOW THE REVENUE IS IN APPEAL BEFORE THIS TRIBUNAL AGAINST THE ORDER OF TH E LD. CIT(A). 6. WE HAVE HEARD SH. R.L. CHHANALIA, THE LD. DR, AT LENGTH. WE FIND THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE BY THE DECISION OF THE HON'BLE JURISDICTION AL HIGH COURT IN THE CASE OF SHREE BALAJI ALLOWS V. CIT AND ANOTHER (2011) 33 3 ITR 335 (J&K). THE ISSUES BEFORE THE HON'BLE JURISDICTIONAL HIGH COURT FOR DETERMINATION WERE AS UNDER:- (1) WHETHER THE AMOUNT OF EXCISE REFUND AND INTERES T SUBSIDY RECEIVED BY THE APPELLANTS-ASSESSEES, IN PURSUANCE OF THE INCENTIVES ANNOUNCED AND SANCTIONED VIDE GOVERNMENT OF INDIA, MINISTRY OF COMMERCE AND INDUSTRY (DEPARTMENT OF INDUSTRIAL POL ICY AND PROMOTION)S OFFICE MEMORANDUM NO. 1(13)2000-NER D ATED JUNE 14,2002 AND CENTRAL EXCISE NOTIFICATION NOS. 56 AND 57, DATED NOVEMBER 14, 2002 AND OTHER NOTIFICATION ISSUED ON THE SUBJECT, PERTAINING TO THE INDUSTRIAL POLICY INTRODUCED IN T HE STATE OF JAMMU AND KASHMIR, IS A CAPITAL RECEIPT AND, THUS, NOT LI ABLE TO TAX UNDER THE PROVISIONS OF THE ACT, OR REVENUE RECEIPT, AS OPINE D BY THE AUTHORITIES UNDER THE ACT? 5 (2) WHETHER THE APPELLANTS-ASSESSEES ARE ENTITLED T O DEDUCTION UNDER SECTION 80IB OF THE ACT ON THE EXCISE DUTY RE FUND AND INTEREST SUBSIDY ETC., BEING THE INCOME DERIVED FROM THE IND USTRIAL UNDERTAKING, IN CASE THE EXCISE REFUND AND INTEREST SUBSIDY WERE FOUND TO BE REVENUE RECEIPT. 7. THE HON'BLE HIGH COURT OF JAMMU AND KASHMIR WHIL E DECIDING THE MATTER HAS DISCUSSED THE SALIENT FEATURES OF THE NE W INDUSTRIAL POLICY, AMENDMENTS INTRODUCED THERETO AND STATUTORY NOTIFIC ATION ETC. THE HON'BLE HIGH COURT FURTHER DISCUSSED THE DECISION OF HON'B LE SUPREME COURT IN THE CASE OF SAHNEY STEEL AND PRESS WORKS LTD (1997) 228 ITR 253 (S.C) AND OBSERVED AS UNDER:- 26 A PERUSAL OF THE OFFICE MEMORANDUM DATED JUNE 1 4, 2002 INDICATING NEW INDUSTRIAL POLICY AND OTHER CONCESSI ONS FOR THE STATE OF JAMMU AND KASHMIR, MAKES IT EXPLICIT THAT THE CONCE SSIONS WERE ISSUED TO ACHIEVE TWIN OBJECTS VIZ. (I) ACCELERATIO N OF INDUSTRIAL DEVELOPMENT IN THE STATE OF JAMMU AND KASHMIR, WHIC H HAD BEEN FOUND LAGGING BEHIND IN SUCH DEVELOPMENT, AND (II) GENERATION OF EMPLOYMENT IN THE STATE OF JAMMU & KASHMIR. 27 AMENDMENT INTRODUCED TO THE OFFICE MEMORANDUM VI DE NOTIFICATION OF NOVEMBER 28, 2003 OF THE GOVERNMENT OF INDIA, MINISTRY OF COMMERCE AND INDUSTRY (DEPARTMENT OF IN DUSTRIAL POLICY AND PROMOTION) ELOQUENTLY DEMONSTRATES THE CENTRAL GOVERENMENTS INTENTION IN EXTENDING THE INCENTIVES. THE GOVERNM ENTS OBJECTIVE, AS CONVEYED BY THE HONBLE PRIME MINISTER A SRINAGAR O N APRIL 19, 2003, WAS, FOR CREATION OF ONE LAKH EMPLOYMENT AND SELF-EMPLOYMENT OPPORTUNITIES IN JAMMU AND KASHMIR STATE. 28 TO ACHIEVE THE PURPOSE AND OBJECTIVE REFERRED TO HEREINABOVE, IT WAS, INTER ALIA, PROVIDED IN THE CENTRAL EXCISE NOT IFICATIONS THAT THE EXEMPTIONS CONTAINED IN THE NOTIFICATIONS WOULD BE AVAILABLE ONLY ON PRODUCTION OF CERTIFICATE FROM GENERAL MANAGER OF T HE CONCERNED DISTRICT INDUSTRIES CENTRE TO THE JURISDICTIONAL DE PUTY COMMISSIONER 6 OF CENTRAL EXCISE OR THE ASSISTANT COMMISSIONER OF CENTRAL EXCISE, AS THE CASE MAY BE, TO THE EFFECT THAT THE UNIT HAD CR EATED REQUIRED ADDITIONAL REGULAR EMPLOYMENT, WHICH WOULD NOT, HOW EVER, INCLUDE EMPLOYMENT PROVIDED BY THE INDUSTRIAL UNITS TO DAIL Y WAGERS OR CASUAL EMPLOYEES ENGAGED IN THE UNITS. 29 A CLOSE READING OF THE OFFICE MEMORANDUM AND THE AMENDMENT INTRODUCED THERETO WITH PARAGRAPH NO. 3 APPEARING I N THE CENTRAL EXCISE NOTIFICATION NOS. 56 AND 57 OF NOVEMBER 11, 2002, THUS, MAKES IT AMPLY CLEAR THAT THE ACCELERATION OF DEVEL OPMENT OF INDUSTRIES IN THE STATE WAS CONTEMPLATED WITH THE OBJECT OF GENERATION OF EMPLOYMENT IN THE STATE OF JAMMU AND KASHMIR AND THE GENERATION OF EMPLOYMENT, SO, CONTEMPLATED, WAS NOT ONLY CASUA L OR TEMPORARY; BUT WAS ON THE OTHER HAND, OF PERMANENT NATURE. 30 CONSIDERED THUS, THE PARAMOUNT CONSIDERATION OF THE CENTRAL GOVERNMENT IN PROVIDING THE INCENTIVES TO THE NEW I NDUSTRIAL UNITS AND SUBSTANTIAL EXPANSION OF THE EXISTING UNITS, WAS TH E GENERATION OF EMPLOYMENT THROUGH ACCELERATION OF INDUSTRIAL DEVEL OPMENT, TO DEAL WITH THE SOCIAL PROBLEM OF UNEMPLOYMENT IN THE STAT E, ADDITIONALLY CREATING OPPORTUNITIES FOR SELF-EMPLOYMENT, HENCE A PURPOSE IN PUBLIC INTEREST. 31 IN THIS VIEW OF THE MATTER, THE INCENTIVES PROVI DED TO THE INDUSTRIAL UNITS, IN TERMS OF THE NEW INDUSTRIAL PO LICY, FOR ACCELERATED INDUSTRIAL DEVELOPMENT IN THE STATE, FOR CREATION O F SUCH INDUSTRIAL ATMOSPHERE AND ENVIRONMENT, WHICH WOULD PROVIDE ADD ITIONAL PERMANENT SOURCE OF EMPLOYMENT TO THE UNEMPLOYED IN HE STATE OF JAMMU AND KASHMIR, WERE IN FACT, IN THE NATURE OF C REATION OF NEW ASSETS OF INDUSTRIAL ATMOSPHERE AND ENVIRONMENT, H AVING THE POTENTIAL OF EMPLOYMENT GENERATION TO ACHIEVE A SOCIAL OBJECT . SUCH INCENTIVES, DESIGNED TO ACHIEVE PUBLIC PURPOSE, CANNOT, BY ANY STRETCH OF REASONING, BE CONSTRUED AS PRODUCTION OR OPERATIONA L INCENTIVES FOR THE BENEFIT OF ASSESSES ALONE. 32 THUS, LOOKING TO THE PURPOSE, OF ERADICATION OF THE SOCIAL PROBLEM OF UNEMPLOYMENT IN THE STATE BY ACCELERATIO N OF THE INDUSTRIAL DEVELOPMENT AND REMOVING BACKWARDNESS OF THE AREA THAT LAGGED BEHIND IN INDUSTRIAL DEVELOPMENT, WHICH IS C ERTAINLY A PURPOSE IN THE PUBLIC INTEREST, THE INCENTIVES PROVIDED BY THE OFFICE 7 MEMORANDUM AND STATUTORY NOTIFICATIONS ISSUED IN TH IS BEHALF, TO THE APPELLANTS-ASSESSEES, CANNOT BE CONSTRUED AS MERE P RODUCTION AND TRADE INCENTIVES, AS HELD BY THE TRIBUNAL. 33. MAKING OF ADDITIONAL PROVISION IN THE SCHEME TH AT INCENTIVES WOULD BECOME AVAILABLE TO THE INDUSTRIAL UNITS, ENT ITLED THERETO, FROM THE DATE OF COMMENCEMENT OF THE COMMERCIAL PRODUCTI ON, AND THAT THESE WERE NOT REQUIRED FOR CREATION OF NEW ASSETS CANNOT BE VIEWED IN ISOLATION, TO TREAT THE INCENTIVES AS PRODUCTION IN CENTIVES, AS HELD BY THE TRIBUNAL, FOR THE MEASURE SO TAKEN, APPEARS TO HAVE BEEN INTENDED TO ENSURE THAT THE INCENTIVES WERE MADE AVAILABLE O NLY TO THE BONA FIDE INDUSTRIAL UNITS SO THAT LARGER PUBLIC INTEREST OF DEALING WITH UNEMPLOYMENT IN THE STATE, AS INTENDED, IN TERMS OF THE OFFICE MEMORANDUM, WAS ACHIEVED. 34. THE OTHER FACTORS, WHICH HAD WEIGHED WITH THE T RIBUNAL IN DETERMINE THE INCENTIVES AS PRODUCTION INCENTIVES M AY NOT BE DECISIVE TO DETERMINING THE CHARACTER OF THE INCENTIVE SUBSI DIES, WHEN IT IS FOUND, AS DEMONSTRATED IN THE OFFICE MEMORANDUM, AM ENDMENT INTRODUCED THERETO AND THE STATUTORY NOTIFICATION T OO THAT THE INCENTIVES WERE PROVIDED WITH THE OBJECT OF CREATING AVENUES F OR PERPETUAL EMPLOYMENT, TO ERADICATE THE SOCIAL PROBLEM OF UNEM PLOYMENT IN THE STATE BY ACCELERATED INDUSTRIAL DEVELOPMENT. 8. THE HON'BLE JURISDICTIONAL HIGH COURT CONCLUDED AS UNDER:- 35 FOR ALL WHAT HAS BEEN SAID ABOVE, THE FINDING O F THE TRIBUNAL ON THE FIRST ISSUE THAT THE EXCISE DUTY REFUND, INTERE ST SUBSIDY AND INSURANCE SUBSIDY WERE PRODUCTION INCENTIVES, HENCE REVENUE RECEIPT, CANNOT BE SUSTAINED, BEING AGAINST THE LAW LAID DOW N BY THE HON'BLE SUPREME COURT OF INDIA IN SAHNEY STEEL CASE (1997) 228 ITR 253 AND PONNI SUGARS CASE (2008) 306 ITR 392. 36 THE FINDING OF THE TRIBUNAL THAT THE INCENTIVES WERE REVENUE RECEIPT IS, ACCORDINGLY, SET ASIDE HOLDING THE INCE NTIVES TO THE CAPITAL RECEIPT IN THE HANDS OF THE ASSESSES. 37 IN VIEW OF OUR ABOVE FINDING ON THE FIRST ISSUE, THERE IS NO NEED TO OPINE ON THE SECOND ISSUE, WHICH WAS RAISED IN T HE ALTERNATIVE. 8 9. RESPECTFULLY FOLLOWING THE JUDGMENT OF THE HON'B LE JURISDICTIONAL HIGH COURT, WE CONFIRM THE ORDERS OF THE LD. CIT(A) IN HOLDING THAT THE EXCISE DUTY REFUND IS TO BE TREATED AS CAPITAL REC EIPT IN THE HANDS OF THE ASSESSEE AND NOT LIABLE TO BE TAXED. 10. IN ITA NO.168(ASR)/2012, THE REVENUE HAS RAISED ONE MORE GROUND WHICH IS AS UNDER: REGARDING ADDITION ON ACCOUNT OF LATE DEPOSIT OF PF AND DISALLOWANCE U/S 40(A)(IA) OF THE INCOME TAX ACT, 1 961. 1. ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. CIT(A) WAS RIGHT IN ALLOWING RELIEF ON ACCOUNT OF DEDUCTION U /S 80IB ON ADDITION MADE ON ACCOUNT OF LATE DEPOSIT OF PF CONTRIBUTION AND DISALLOWANCE MADE U/S 40(A)(IA) AS THE ASSESSEE HAS CONTRAVENED THE PROVISIONS OF THE INCOME TAX ACT, IN VIEW OF THE DECISION OF THE JURISDICTIONAL BENCH IN THE CASE OF M/S. KASHMIR TUBES REPORTED IN ITA NO.145(ASR)/2005 DATED 07.12.2007 WHERE SUCH DISALL OWANCES WERE UPHELD BY THE HONBLE ITAT, AMRITSAR. 9.1. AS REGARDS DISALLOWANCE MADE U/S 40(A)(IA) O F THE INCOME-TAX ACT, 1961, WE ARE OF THE VIEW THAT THE ISSUE IN DISPUTE IS COVERED BY THE DECISION OF HONBLE ITAT, AMRITSAR BENCH IN THE CASE OF M/S. SUN PHARMACEUTICALS, IN I TA NO.184(ASR)/2009 FOR THE ASSESSMENT YEAR 2005-06 DA TED 11.06.2010. 10.1 AFTER HEARING THE LD. DR AND PERUSING THE ORDE R OF THE LD. CIT(A) ON THE ISSUE IN DISPUTE, WE ARE OF THE CONSIDERED VIE W THAT THE LD. FIRST APPELLATE AUTHORITY HAS PASSED A WELL REASONED ORDER BASED ON FACTS AND MATERIALS 9 AVAILABLE ON RECORD, WHICH REQUIRES NO INTERFERENCE AT OUR LEVEL. THE LD. FIRST APPELLATE AUTHORITY WHILE ADJUDICATING THE ISSUE IN DISPUTE HAS ALSO FOLLOWED THE DECISION OF THE ITAT, AMRITSAR BENCH, IN THE CA SE OF M/S. SUN PHARMACEUTICALS ITA NO.184(ASR)2009 FOR THE ASSESS MENT YEAR 2005-06 DATED 11.06.2010. THUS, IN VIEW OF THE ABOVE DISCUS SIONS AND WELL REASONED FINDINGS GIVEN BY THE LD. CIT(A), WE DO NOT FIND AN Y JUSTIFICATION TO INTERFERE WITH THE SAME. ACCORDINGLY, THIS GROUND OF THE REVE NUE IS ALSO DISMISSED. 11. IN ITA NO.161(ASR)/2012, THE LAST GROUND RAISED BY THE REVENUE READS AS UNDER: REGARDING ADDITION ON ACCOUNT OF LATE DEPOSIT OF EP F U/S 36 OF THE INCOME TAX ACT, 1961. 1. ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. CIT(A) WAS RIGHT IN ALLOWING RELIEF ON ACCOUNT OF DEDUCTI ON U/S 80IB ON ADDITION MADE ON ACCOUNT OF LATE DEPOSIT OF EPF U/S 36 AS THE ASSESSEE HAS CONTRAVENED THE PROVISIONS OF THE ACT, IN VIEW OF THE DECISION OF JURISDICTIONAL BENCH IN THE CASE OF M/S. KASHMIR TUBES REPORTED IN ITA NO.145(ASR)/2005 DATE D 07.12.2007 WHERE SUCH DISALLOWANCES WERE UPHELD BY THE HONBLE ITAT, AMRITSAR. 11.1 AS REGARDS ADDITION ON ACCOUNT OF LATE DEPOSI T OF EPF U/S 36 OF THE INCOME-TAX ACT, 1961, WE ARE OF THE VIEW THAT THE ISSUE IN DISPUTE IS COVERED BY THE DECISION OF HONBLE ITAT, AMRITSAR B ENCH IN THE CASE OF M/S. SUN PHARMACEUTICALS, IN ITA NO.184(ASR)/2009 F OR THE ASSESSMENT YEAR 2005-06 DATED 11.06.2010. 10 12. RESPECTFULLY FOLLOWING THE DECISION OF THE ITA T, AMRITSAR BENCH, IN THE CASE OF M/S. SUN PHARMACEUTICALS ITA NO.184(AS R)2009 FOR THE ASSESSMENT YEAR 2005-06 DATED 11.06.2010, WHICH IS SQUARELY APPLICABLE TO THE FACTS OF THE ISSUE IN HAND, WE DISMISS THIS GRO UND OF THE REVENUE. 13. IN ITA NO.160(ASR)/2012, THE REVENUE HAS RAISED ONE MORE GROUND WHICH IS AS UNDER: REGARDING ADDITION ON ACCOUNT OF LATE DEPOSIT OF PF AND DISALLOWANCE U/S 40(A(IA) OF THE INCOME TAX ACT, 19 61. 1. ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. CIT(A) WAS RIGHT IN ALLOWING RELIEF ON ACCOUNT OF DEDUCTION U /S 80IB ON ADDITION MADE ON ACCOUNT OF LATE DEPOSIT OF PF CONTRIBUTION AND DISALLOWANCE MADE U/S 40(A)(IA) AS THE ASSESSEE HAS CONTRAVENED THE PROVISIONS OF THE INCOME TAX ACT, IN VIEW OF THE DECISION OF THE JURISDICTIONAL BENCH IN THE CASE OF M/S. KASHMIR TUBES REPORTED IN ITA NO.145(ASR)/2005 DATED 07.12.2007 WHERE SUCH DISALL OWANCES WERE UPHELD BY THE HONBLE ITAT, AMRITSAR. 13.1. AS REGARDS DISALLOWANCE MADE U/S 40(A)(IA) OF THE INCOME-TAX ACT, 1961, WE ARE OF THE VIEW THAT THE ISSUE IN DISPUT E IS COVERED BY THE DECISION OF HONBLE ITAT, AMRITSAR BENCH IN THE CASE OF M/S. SUN PHARMACEUTICALS, IN ITA NO.184(ASR)/2009 FOR THE ASSESSMENT YEAR 200 5-06 DATED 11.06.2010. 13.2. AFTER HEARING THE LD. DR AND PERUSING THE ORD ER OF THE LD. CIT(A) ON THE ISSUE IN DISPUTE, WE ARE OF THE CONSIDERED VIE W THAT THE LD. FIRST APPELLATE 11 AUTHORITY HAS PASSED A WELL REASONED ORDER BASED ON FACTS AND MATERIALS AVAILABLE ON RECORD, WHICH REQUIRES NO INTERFERENCE AT OUR LEVEL. THE LD. FIRST APPELLATE AUTHORITY WHILE ADJUDICATING THE ISSUE IN DISPUTE HAS ALSO FOLLOWED THE DECISION OF THE ITAT, AMRITSAR BENCH, IN THE CA SE OF M/S. SUN PHARMACEUTICALS ITA NO.184(ASR)2009 FOR THE ASSESS MENT YEAR 2005-06 DATED 11.06.2010, THUS, IN VIEW OF THE ABOVE DISCUS SIONS AND WELL REASONED FINDINGS GIVEN BY THE LD. CIT(A), WE DO NOT FIND AN Y JUSTIFICATION TO INTERFERE WITH THE SAME. ACCORDINGLY, THIS GROUND OF THE REVE NUE IS ALSO DISMISSED. 14. IN ITA NO.155(ASR)/2012, THE REVENUE HAS RAISED ONE MORE GROUND WHICH IS AS UNDER: REGARDING DISALLOWANCE U/S 40(A)(IA) OF THE INCOME TAX ACT, 1961. 1. ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. CIT(A) WAS RIGHT IN ALLOWING RELIEF ON ACCOUNT OF DEDUCTION U /S 80IB ON DISALLOWANCE OF RS.5204/- MADE U/S 40(A)(IA) AS THE ASSESSEE HAS CONTRAVENED THE PROVISIONS OF THE INCOME TAX ACT, IN VIEW OF THE DECISION OF THE JURISDICTIONAL BENCH IN THE CASE OF M/S. KASHMIR TUBES REPORTED IN ITA NO.145(ASR)/2005 DATED 07.12. 2007 WHERE SUCH DISALLOWANCES WERE UPHELD BY THE HONBLE ITAT, AMRITSAR. 14.1. AS REGARDS DISALLOWANCE MADE U/S 40(A)(IA) OF THE INCOME-TAX ACT, 1961, WE ARE OF THE VIEW THAT THE ISSUE IN DISPUT E IS COVERED BY THE DECISION OF HONBLE ITAT, AMRITSAR BENCH IN THE CASE OF M/S. SUN PHARMACEUTICALS, IN ITA NO.184(ASR)/2009 FOR THE ASSESSMENT YEAR 200 5-06 DATED 11.06.2010. 12 15. AFTER HEARING THE LD. DR AND PERUSING THE ORDER OF THE LD. CIT(A) ON THE ISSUE IN DISPUTE, WE ARE OF THE CONSIDERED VIE W THAT THE LD. FIRST APPELLATE AUTHORITY HAS PASSED A WELL REASONED ORDER BASED ON FACTS AND MATERIALS AVAILABLE ON RECORD, WHICH REQUIRES NO INTERFERENCE AT OUR LEVEL. THE LD. FIRST APPELLATE AUTHORITY WHILE ADJUDICATING THE ISSUE IN DISPUTE HAS ALSO FOLLOWED THE DECISION OF THE ITAT, AMRITSAR BENCH, IN THE CA SE OF M/S. SUN PHARMACEUTICALS ITA NO.184(ASR)2009 FOR THE ASSESS MENT YEAR 2005-06 DATED 11.06.2010. THUS, IN VIEW OF THE ABOVE DISCUS SIONS AND WELL REASONED FINDINGS GIVEN BY THE LD. CIT(A), WE DO NOT FIND AN Y JUSTIFICATION TO INTERFERE WITH THE SAME. ACCORDINGLY, THIS GROUND OF THE REVE NUE IS ALSO DISMISSED. 16. IN THE RESULT, ALL THE FIVE APPEALS FILED BY TH E REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 3RD JULY, 2012. SD/- SD/- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 3 RD JULY, 2012 /SKR/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEES:I) M/S. JK PETRO CHEMICALS II) M/S. H ARI KRIPA PERFUMES (P) LTD. (III) M/S. SHIVA MINT INDUSTRIES (IV) M/S. FINE AROMATICS (V) M/S. JAY AMBAY AROMATICS, JAMMU. 2. THE ITO, UDHAMAPUR/ ITO W-1(3), JAMMUITO W-1(1), JA MMU 3. THE CIT(A) 4. THE CIT 5. THE SR DR, ITAT, AMRITSAR. TRUE COPY