ACIT, Circle-16(3), Hyderabad V. M/S P & J Cretchem Limited, Hyderabad

ITA 1698/HYD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3263 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 31-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T DIWAKAR PRASAD
• Assessee Lawyers: SURESH KUMAR RATHI
• Section: 10B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT & SHRI AKBER BASHA, ACCOUNTANT MEMBER I.T.A. NO. 1698/HYD/2010 ASSESSMENT YEAR 2007-2008 THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-16(3), HYDERABAD. VS. M/S. P & J CRETCHEM LTD., HYDERABAD PAN: AACCP9226G APPL IC ANT RESPONDENT APPELLANT BY: MR. T. DIWAKAR PRASAD RESPONDENT BY: MR. SURESH KUMAR RATHI O R D E R PER G.C. GUPTA, VP: THIS APPEAL BY THE REVENUE, FOR THE ASSESSMENT YEA R 2007-08, IS DIRECTED AGAINST THE ORDER OF THE CIT(A )-V, HYDERABAD DATED 28.10.2010. 2. THE GROUNDS OF APPEAL BY THE REVENUE ARE AS UNDER: 1. THE HONBLE CIT(A) ERRED IN ALLOWING THE APPEAL OF THE ASSESSEE BY DIRECTING THE ASSESSING OFFICER TO EXCLUDE THE FREIGHT CHARGES FROM TOTAL INCOME. 2. THE HONBLE CIT(A) SHOULD HAVE UNDERSTOOD THE INTENTION OF LEGISLATURE IN NOT DEFINING THE TERM TOTAL TURNOVER AS WAS DONE IN THE CASE OF EXPORT TURNOVER FOR THE PURPOSE OF EXEMPTION UNDER SECTION 10B OF THE INCOME- TAX ACT. 3. THE LEARNED DR HAS RELIED ON THE ORDER OF THE ASSESSING OFFICER. 4. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE IN THE GROUNDS OF APPEAL OF THE REVENUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION O F THE HYDERABAD TRIBUNAL IN ASSESSEES OWN CASE FOR ASSES SMENT I.T.A. NO. 1698/HYD/2010 M/S. P & J CRETCHEM LTD. ==================== 2 YEAR 2006-07 IN I.T.A. NO. 1123/HYD/2010 DATED 11.11.2010 WHEREIN AN IDENTICAL ISSUE WAS DECIDED IN FAVOUR OF THE ASSESSEE AND THE REVENUES APPEAL WAS DISMISSED. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT THE ISSUE OF EXCLUSION OF FREIGHT CHARGES FROM THE TOTAL TURNOVER IS COVERED IN FAVOUR OF THE ASSESSEE WITH TH E DECISION OF THE CO-ORDINATE BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2006-07 DATED 11.11.20 10 (SUPRA) WHEREIN IDENTICAL ISSUE WAS DECIDED IN FAVOU R OF THE ASSESSEE AND THE FREIGHT AND INSURANCE CHARGES WERE DIRECTED TO BE EXCLUDED FROM THE TOTAL TURNOVER OF THE ASSESSEE AND THE DECISION OF THE SPECIAL BENCH OF CH ENNAI TRIBUNAL IN I.T.O. VS. SAK SOFT LTD., 313 ITR (AT) 35 3 WAS FOLLOWED. WE FIND THAT THE CIT(A) IN THE IMPUGNED ORD ER HAS FOLLOWED THE DECISION OF THE SPECIAL BENCH OF THE CHENNAI TRIBUNAL IN ITO VS. SAK SOFT LTD. (SUPRA) AN D HAS DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE. THERE B EING NO MISTAKE IN THE ORDER OF THE CIT(A) IN DECIDING THE ISS UE IN FAVOUR OF THE ASSESSEE BY FOLLOWING THE DECISION OF TH E SPECIAL BENCH OF CHENNAI TRIBUNAL IN THIS CASE, WE C ONFIRM THE ORDER OF THE CIT(A) AND THE GROUNDS OF APPEAL OF T HE REVENUE ARE DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH JUNE, 2011. SD/- (AKBER BASHA) ACCOUNTANT MEMBER SD/- (G.C. GUPTA) VICE PRESIDENT HYDERABAD, DATED 15 TH JUNE, 2011 TPRAO I.T.A. NO. 1698/HYD/2010 M/S. P & J CRETCHEM LTD. ==================== 3 COPY FORWARDED TO: 1. THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-16(3) , 6 TH FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD. 2. M/S. P & J CRETCHEM LTD., SHED NO. 42, PHASE-II, I DA MALLAPUR, NACHARAM. 3. THE CIT(A)-V, HYDERABAD 4 THE CIT-IV, HYDERABAD. 5. THE DR A BENCH, ITAT, HYDERABAD `