The Dy.Commissioner of Income Tax Circle-1(1)(1), Ahmedabad V. M/s. Anil Bioplus Limited, Ahmedabad

ITA 1763/AHD/2016

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4904 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 7 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 18-02-2020
• Assessment Year: 2012-2013
• Appeal Filed On: 30-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

, D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD , JUDICIAL MEMBER ./ I.T.A. NO. 1763/AHD/2016 ( ASSESSMENT YEAR : 2012-13) DCIT CIRCLE 1(1)(1), A WING, ROOM NO.309, 3 RD FLOOR, PRATYAKSH KAR BHAVAN, AMBAWADI, AHMEDABAD 380015 / VS. ANIL BIOPLUS LTD. ANIL STARCH PREMISES, ANIL ROAD, NARODA, AHMEDABAD 380025 ./ ./ PAN/GIR NO. : AABCA6331J ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI VINOD TANWANI, SR.DR / RESPONDENT BY : NONE DATE OF HEARING 18/02/2020 !'# / DATE OF PRONOUNCEMENT 20/02/2020 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1, AHMEDABAD (CIT(A) IN SHORT), DATED 26.04.2016 ARI SING IN THE ASSESSMENT ORDER DATED 24.02.2015 PASSED BY THE ASS ESSING OFFICER (AO) UNDER S. 143(3) OF THE INCOME TAX ACT, 1961 (THE AC T) CONCERNING AY 2012-13. 2. THE GROUNDS OF APPEAL FILED BY THE REVENUE READS AS UNDER: ITA NO. 1763/AHD/16 [DCIT VS. ANIL BIOPLUS LTD.] A.Y. 2012-13 - 2 - (1) THAT THE LD.CIT(A) HAS ERRED IN LAW AND ON FAC TS IN DELETING THE ADDITION OF RS.3,11,98,757/- MADE ON ACCOUNT OF DIS ALLOWANCE OF DEDUCTION U/S 80JJA OF THE I.T. ACT. (2) THAT THE LD.CIT(A) HAS SUBSTANTIALLY ERRED IN N OT APPRECIATING THE FACTS OF THE CASE THAT THE ASSESSEE HAD PURCHAS ED FEED EZ PLUS, FEED, BARN, MAIZE AND GLUTEN, WHICH WERE NOT BIO-D EGRADABLE WASTE WITHIN THE MEANING OF SECTION 80JJA. (3) THAT THE LD. CIT(A) HAS SUBSTANTIALLY ERRED IN NOT CONSIDERING THE FACTS OF THE CASE THAT THE ASSESSEE HAD NOT FURNISH ED ANY DETAILS LIKE COPY OF BILLS, DELIVERY CHALLAN ETC. IN ORDER TO PR OVE THE GENUINENESS OF PURCHASE. 3. IDENTICAL DISPUTE HAS BEEN RAISED IN THE CASE OF ASSESSEE IN AY 2011- 12 IN ITA NO. 902/AHD/2016 ORDER DATED 30.01.2020 AS WELL. THE CO- ORDINATE BENCH OF TRIBUNAL AFTER TAKING DETAILED NO TE OF FACTS AND CIRCUMSTANCES OF THE CASE, HAS ADJUDICATED THE ISSU E IN FAVOUR OF ASSESSEE AND AGAINST THE REVENUE. THE RELEVANT OPERATIVE PA RA OF THE ORDER OF THE TRIBUNAL IN ITA NO. 902/AHD/2016 (SUPRA) READS AS UNDER: 9. WE HAVE CAREFULLY PERUSED THE ASSESSMENT ORDER OF THE AO AND APPELLATE ORDER OF CIT(A). THE CLAIM OF DEDUCTION UNDER S.80JJA OF THE ACT ON PROCESSING OF BIODEGRADABLE WASTE FOR GENERA TION OF BIOFEEDS (BIOLOGICAL AGENTS) IS IN QUESTION. THE CIT(A) HAS FOUND MERIT IN THE CLAIM OF DEDUCTION ON PRINCIPLES. THE CIT(A) HAS T AKEN NOTE OF THE SUBMISSIONS OF THE ASSESSEE TOWARDS PROCESS OF PROD UCTION OF BIOFEEDS IN THE NATURE OF BIOLOGICAL AGENTS FROM BIODEGRADAB LE WASTE, INGREDIENTS PURCHASED FOR PROCESSING AND TREATING W ASTE, DETAILS OF MACHINERY USED IN PRODUCTION, DETAILS OF PURCHASE A ND SALE MADE FROM VARIOUS PARTIES ETC. THE CIT(A) FOUND MERIT IN THE CASE OF THE ASSESSEE FOR ELIGIBILITY OF DEDUCTION UNDER S.80JJA OF THE A CT FROM ON PROFITS ARISING FROM ACTIVITY OF COLLECTION AND PROCESSING OF BIODEGRADABLE WASTE IN ORDER TO GENERATE/MANUFACTURE BIOFEEDS/BIO LOGICAL AGENTS WHICH ARE ESSENTIALLY NUTRITION BOOSTER DERIVED BY A COMBINATION OF VARIOUS BIOLOGICAL PROCESSES FOR THE USE IN ANIMAL HEALTHCARE INDUSTRY. AS PER PROCESS ADOPTED, UNWANTED WASTE ARE FURTHER TREATED THROUGH A SERIES OF BIOLOGICAL PROCESS WITH THE HELP OF BIOTE CHNOLOGY TO PRODUCE BIOFEEDS WHICH ARE RICH IN ENERGY VALUES. BIOFEEDS ARE STATED TO HELP IN IMPROVING THE DIGESTION IN ANIMALS AND POULTRY AND THE BIOLOGICAL AGENTS PRESENT IN BIOFEEDS ARE STATED TO BE USED TO REPLACE CHEMICAL BASED ANTIBIOTICS IN ANIMAL AND POULTRY. ON THESE FACTS, THE CIT(A) HAS ACCEPTED THE CLAIM OF THE ASSESSEE UNDER S. 80JJA O F THE ACT ON FIRST PRINCIPLE BUT RE-ALLOCATED A PART OF EXPENDITURE AS CONSIDERED ATTRIBUTABLE TO THE ACTIVITY DERIVED FROM THE BUSIN ESS OF COLLECTING AND PROCESSING OR TREATING BIODEGRADABLE WASTE FOR PROD UCTION OF BIOLOGICAL AGENTS. OWING TO REALLOCATION OF EXPENSES, THE CIT (A) RESTRICTED THE CLAIM TO THE EXTENT OF RS.1.54 CRORES AS AGAINST TH E CLAIM OF THE ASSESSEE AMOUNTING TO RS.1.91 CRORE. WE FIND CONSI DERABLE SUBSTANCE IN THE PROCESS OF REASONING ADOPTED BY THE CIT(A) W HILE CONCLUDING THE ITA NO. 1763/AHD/16 [DCIT VS. ANIL BIOPLUS LTD.] A.Y. 2012-13 - 3 - ISSUE IN FAVOUR OF THE ASSESSEE. THE CIT(A), IN OU R VIEW, HAS DEALT WITH THE ISSUE OBJECTIVELY AND HENCE DOES NOT WARRANT IN TERFERENCE. THE REVENUE HAS FAILED TO REBUT THE FINDINGS OF THE CIT (A) IN ANY ASSERTIVE MANNER. WE THUS DECLINE TO INTERFERE. 4. THE ISSUE IS THUS NO LONGER RES INTEGRA AND ALREADY ADJUDICATED IN FAVOUR OF THE ASSESSEE IN AY 2011-12 AS WELL. IN C ONSONANCE WITH THE VIEW ALREADY TAKEN IN THE IDENTICAL FACTS, WE DECLI NE TO INTERFERE WITH THE ORDER OF THE CIT(A). 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMAR K EDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 20/02/2020 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 20/02/202 0