The ITO, Vapi Ward-4, Nani Daman V. M/s. Excellent Mfg. Co., Nani Daman

ITA 1633/AHD/2009

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 57061 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 12-01-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 20-05-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R M UPADHYAY
• Keywords: Benefit of exemption
• Section: 80IB

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI MUKUL KR.SHRAWAT, JUDICIAL MEMBER AND SHRI A.L.GEHLOT, ACCOUNTANT MEMBER ./ I.T.A. NO.1633/AHD/2009 ( / / / / ASSESSMENT YEAR : 2006-07) THE ITO VAPI WARD-4 DAMAN / VS. M/S.EXCELLENT MFG.CO. GALA NO.4, SURVEY NO.485-C BUILDING NO.2, DABHEL NANI DAMAN ! ./'# ./ PAN/GIR NO. : AABFE 5985 B ( $ / // / APPELLANT ) .. ( %&$ / RESPONDENT ) $ ' / APPELLANT BY : SHRI SAMIR TEKRIWAL, SR. D.R. %&$ ( ' / RESPONDENT BY : SHRI R.M. UPADHYAY A.R. )* ( +,! / / / / DATE OF HEARING : 12/1/2012 -. ( +,! / DATE OF PRONOUNCEMENT : 31/1/12 / / O R D E R PER SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER : THIS IS AN APPEAL AT THE BEHEST OF THE REVENUE WHI CH HAS EMANATED FROM THE ORDER OF LEARNED CIT(APPEALS)-VALSAD DATE D 13/03/2009 AND THE SOLITARY SUBSTANTIAL GROUND READS AS UNDER:- (1) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.13, 95,966/- MADE ON ACCOUNT OF DISALLOWANCE OF DEDUCTION U/S.80IB OF TH E ACT. ITA NO.1633/AHD /2009 THE ITO VS. M/S.EXCELLENT MFG.CO. ASST.YEAR 2006-07 - 2 - 2. FACTS IN BRIEF AS EMERGED FROM THE CORRESPONDING ASSESSMENT ORDER PASSED U/S.143(3) OF THE I.T. ACT, 1961 DATED 22 .12.2008 WERE THAT THE ASSESSEE-FIRM IS IN THE BUSINESS OF MANUFACTURING OF HOME CARE PRODUCTS. IT WAS NOTED BY THE ASSESSING OFFICER THAT THE UNIT OF THE ASSESSEE IS LOCATED IN THE UNION TERRITORY OF DAMAN. THE ASSES SEE HAS CLAIMED A BENEFIT OF U/S.80IB OF THE I.T.ACT IN RESPECT OF MA NUFACTURING OF HOME CARE PRODUCTS, SUCH AS, AIR FRESHENERS, AIR PURIFIE RS CUM GERMICIDAL, DISINFECTANTS, ETC. AS PER ASSESSING OFFICER, THE ASSESSEE HAS NOT MANUFACTURED OR PRODUCED ANY NEW ARTICLE OR THING. THE CLAIM OF THE ASSESSEE U/S.80IB WAS REJECTED. THE MATTER WAS CAR RIED BEFORE THE FIRST APPELLATE AUTHORITY, WHO HAS EXAMINED THE MANUFACTU RING PROCESS OF THE ASSESSEE, THE INGREDIENTS USED AND THE FINAL PRODUC TS MANUFACTURED IN THE LIGHT OF SEVERAL CASE LAWS AND, THEREAFTER, HELD TH AT THE PRODUCTION ACTIVITIES AS CARRIED OUT BY THE APPELLANT WAS WITH IN THE MANUFACTURING ACTIVITIES, HENCE ENTITLED FOR THE BENEFIT U/S.80IB OF THE I.T.ACT. 3. WITH THIS BRIEF BACKGROUND, WE HAVE BEEN INFORME D THAT IN AN IDENTICAL SITUATION, IN A GROUP OF CASES WHEREIN TH IS ASSESSEE IS ALSO A PARTY, THE RESPECTED ITAT C BENCH AHMEDABAD IN IT A NOS. 2374/AHD/2006, 3083/AHD/2007 & 888/AHD/2008 (AYS 20 03-04 TO 2005-06 RESPECTIVELY) TITLED AS THE ITO VS. M/S.PU RE AIR INC., IN ITA NOS.2373/AHD/2006, 3082/AHD/2007 & ITA NO.885/AHD/2 008 (AYS 2003-04 TO 2005-06 RESPECTIVELY) TITLED AS THE ITO VS. M/S.SUPERIOR WORKS AND IN ITA NOS.2372/AHD/2006, 3081/AHD/2007 & ITA NO.884/AHD/2008 (AYS 2003-04 TO 2005-06 RESPECTIVEL Y) TITLED AS ITO ITA NO.1633/AHD /2009 THE ITO VS. M/S.EXCELLENT MFG.CO. ASST.YEAR 2006-07 - 3 - VS. M/S.EXCELLENT MFG.CO. VIDE ORDER DATED 28/11/2 008 HAS HELD AS UNDER:- 8 . THE ASSESSEES PRODUCT HAS ALSO PASSED THE TEST OF COMMERCIAL PARLANCE I.E. COMMERCIALLY THEIR FINISHE D GOOD, AND THE INGREDIENTS WHICH GOES IN THE MANUFACTURE OF TH E FINISHED GOODS, ARE DIFFERENT COMMERCIAL COMMODITIES. THIS IS CLEAR FROM THE CERTIFICATES OF THE DEALERS AND END-USERS PRODU CED BY THE ASSESSEE. FOR THE PURPOSE OF DETERMINING THE COMME RCIAL PARLANCE TEST, THE OPINION OF THE DEALERS AND THE USER ARE F INAL SINCE IT IS THEY WHO ARE CONCERNED WITH THE GOODS IN THEIR CAPACITY AS DEALERS AND USERS AND THEIR OPINION IS THE FINAL DEFINITE INDEX OF THE COMMERCIAL IDENTITY OF ANY PRODUCT. THEREFORE, WE ARE IN FULL AGREEMENT WITH THE ASSESSEES CONTENTION THAT EVEN BY APPLYING COM MERCIAL AND TRADE PARLANCE TEST THEIR ACTIVITIES ARE LIABLE TO BE CONSIDERED AS MANUFACTURING ACTIVITIES. UNDER THESE CIRCUMSTANCE S, AFTER TAKING INTO CONSIDERATION ALL THE FACTS OF THE CASE, WE HO LD THAT THE ASSESSEES ACTIVITIES ARE MANUFACTURING ACTIVITIES, AND THEIR APPEAL DESERVES TO BE ALLOWED ON THE POINT OF FACTS, HOLDI NG THAT THE ASSESSEE IS ELIGIBLE FOR THE BENEFIT OF EXEMPTION U NDER SECTION 80IB OF THE ACT. 4. RESPECTFULLY FOLLOWING THE DECISION OF THE RE SPECTED CO-ORDINATE BENCH, WE HEREBY CONFIRM THE FINDING OF THE LD.CIT( A). THIS GROUND OF THE REVENUE IS DISMISSED. 5. IN THE RESULT, REVENUES APPEAL IS DISMISSED. SD/- SD/- ( A.L. GEHLOT ) ( MU KUL KR. SHRAWAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 31/ 01 /2012 0,.., .../ T.C. NAIR, SR. PS ITA NO.1633/AHD /2009 THE ITO VS. M/S.EXCELLENT MFG.CO. ASST.YEAR 2006-07 - 4 - / ( %+1 2 1+ / ( %+1 2 1+ / ( %+1 2 1+ / ( %+1 2 1+/ COPY OF THE ORDER FORWARDED TO : 1. $ / THE APPELLANT 2. %&$ / THE RESPONDENT. 3. + )3 / CONCERNED CIT 4. )3() / THE CIT(A)-VALSAD 5. 167 %+ , , / DR, ITAT, AHMEDABAD 6. 78 9* / GUARD FILE. /) /) /) /) / BY ORDER, &1+ %+ //TRUE COPY// : :: :/ // / ' ' ' ' ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD 1. DATE OF DICTATION..17.1.12 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 17.1.12 OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S 31.1.12 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 31.1.12 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 9. DATE OF DESPATCH OF THE ORDER