M/s. Patankar Wind Farm Pvt. Ltd., Satara V. Deputy Commissioner of Income-tax,

ITA 171/PUN/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 1141 (ITAT-PUNE)
• Duration Of Justice: 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 18-08-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 08-02-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUHAS S KULKARNI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE . . , BEFORE SHRI R.K. PANDA, AM . / ITA NO.171/PN/2016 / ASSESSMENT YEAR : 2007-08 M/S. PATANKAR WIND FARM PVT. LTD., SHIKKA MANSION, AT & POST PATAN, TALUKA PATAN, DIST. SATARA 415 206 PAN :AABCP1365R . / APPELLANT V/S ACIT, SATARA CIRCLE, SATARA . / RESPONDENT / APPELLANT BY : SHRI PRAYAG JHA / RESPONDENT BY : SHRI SUHAS S. KULKARNI / ORDER PER R.K.PANDA, AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 18-01-2016 OF THE CIT(A)-2, PUNE RELATING TO THE A SSESSMENT YEAR 2007-08. 2. GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER : ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW : 1. THE LD.CIT(A) WAS NOT JUSTIFIED IN REJECTING THE APPE LLANTS CONTENTION THAT THE SALES TAX BENEFIT OF RS.18,87,750/- WAS INEXT RICABLY LINKED TO THE INDUSTRIAL UNDERTAKING AND WAS INTEGRAL PART OF T HE PROFIT DERIVED FROM POWER GENERATION BY THE SAID UNDERTAKING, ELIGI BLE FOR DEDUCTION U/S.80IA(I). 2. THE LD.CIT(A) WAS NOT JUSTIFIED IN REJECTING THE APPE LLANTS CONTENTION THAT THE SALES TAX BENEFIT GRANTED TO THE APPELLANT WAS PART OF A BENEFICIAL SCHEME OF THE STATE GOVERNMENT TO PROMOTE GENERATION OF WIND ENERGY AND, THEREFORE, WAS ELIGIBLE FOR DEDUCTI ON U/S.80IA(I). 3. THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY OF THE ABOVE GROUNDS OR TO ADD NEW GROUNDS DURING THE COURSE OF APPEAL PRO CEEDINGS. / DATE OF HEARING :18.08.2016 / DATE OF PRONOUNCEMENT:18.08.2016 2 ITA NO.171/PN/2016 3. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS A PRIVATE LIMITED COMPANY ENGAGED IN THE BUSINESS OF WIND POWER GEN ERATION, DEALING IN LAND, PURCHASE/SALE OF LAND AND LAND DEVELOPMENT E TC. IT FILED ITS RETURN OF INCOME ON 24-10-2007 DECLARING TOTAL IN COME OF RS.32,00,457/- WHICH WAS SUBSEQUENTLY REVISED ON 05-11-2 007 DECLARING TOTAL INCOME OF RS.17,63,993/-. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE AO OBSERVED THAT ASSESSEE HAS RECEIVED SALES TAX BENEFIT OF RS.18,78,750/- WHICH WAS CREDITED TO TH E PROFIT AND LOSS ACCOUNT AND INCLUDED IN THE AMOUNT OF RS.31,52,415 /- CLAIMED AS DEDUCTION U/S.80IA(4). THE AO HELD THAT SALES T AX BENEFIT WAS NOT DERIVED FROM THE RUNNING OF WINDMILL. THIS BENEFIT HA D ONLY INCIDENTAL NEXUS WITH THE UNDERTAKING OF WINDMILL. THE CONTEN TION OF THE ASSESSEE THAT SALES TAX BENEFIT WAS INEXTRICABLY AT TACHED TO THE INDUSTRIAL UNDERTAKING CARRYING ON THE ACTIVITY OF GENERATIO N OF POWER ENERGY WAS REJECTED BY THE AO. THUS, THE AO REJECTE D THE CLAIM OF DEDUCTION OF RS.18,78,750/- U/S.80IA(4) OF THE I.T. ACT. 4. IN APPEAL THE LD.CIT(A) FOLLOWING THE DECISION OF THE ORDE R OF THE TRIBUNAL IN ASSESSEES OWN CASE VIDE ITA NOS. 2225 AND 2226/PN/2013 ORDER DATED 10-04-2015 FOR A.YRS. 2004-05 AND 2005- 06 UPHELD THE ACTION OF THE AO. 5. AGGRIEVED WITH SUCH ORDER OF THE CIT(A) THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 6. THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET SUB MITTED THAT BOTH THE ISSUES STAND DECIDED AGAINST THE ASSESSEE BY THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR A.YRS. 2004-05 AND 20 05-06 VIDE ITA NOS. 2225 AND 2226/PN/2013 ORDER DATED 10-04-201 5 WHICH HAS BEEN RELIED ON BY THE LD.CIT(A). 3 ITA NO.171/PN/2016 7. IN VIEW OF THE ABOVE SUBMISSION OF THE LD. COUNSEL FOR T HE ASSESSEE AND FOLLOWING THE DECISION OF THE TRIBUNAL IN ASSE SSEES OWN CASE FOR A.YRS. 2004-05 AND 2005-06 I UPHOLD THE ORDER OF THE CIT(A). THE GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY DISMISSED. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSE LF, I.E. ON 18-08-2016. SD/- ( R.K. PANDA ) ACCOUNTANT MEMBER PUNE ; DATED : 18 TH AUGUST, 2016. '# $# / COPY OF THE ORDER FORWARDED TO : / BY ORDER , // TRUE COPY // // $ % //TRUE COPY // // &' % * / SR. PRIVATE SECRETARY *, / ITAT, PUNE 1. / THE APPELLANT 2. / THE RESPONDENT 3. THE CIT (A) - 2, PUNE 4. THE CIT-2, PUNE 5. $ %%* , * , SMC BENCH / DR, ITAT, SMC BENCH PUNE; 6. 2 / GUARD FILE.