ACIT, Coimbatore V. M/s. Chettinadu Lignite Transport Services Pvt. Limited, Coimbatore

ITA 1767/CHNY/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64520 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 26-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR S MOHARANA IRS
• Assessee Lawyers: R VIJAYARAGHAVAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER I.T.A.NO. 1767/MDS/2012 ASSESSMENT YEAR : 2009-10 THE ASSISTANT COMMISSIONER OF INCOME-TAX, COMPANY CIRCLE-1(1), COIMBATORE. VS. M/S. CHETTINADU LIGNITE TRANSPORT SERVICES PVT. LTD., 43, RACE COURSE ROAD, COIMBATORE 18. PAN AABCC7357G (APPELLANT) (RESPONDENT) APPELLANT BY : DR. S. MOHARANA, IRS, CIT RESPONDENT BY : SHRI R. VIJAYARAGHAVAN, A DVOCATE DATE OF HEARING : 21 ST NOVEMBER, 2012 DATE OF PRONOUNCEMENT : 21 ST NOVEMBER, 2012 O R D E R PER DR. O.K. NARAYANAN, VICE-PRESIDENT THIS APPEAL IS FILED BY THE REVENUE. THE RELEVANT ASSESSMENT YEAR IS 2009-10. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-I, AT COIMBATORE DATED 20.7.2012 AND ARISES OUT OF THE AS SESSMENT COMPLETED UNDER SEC.143(3) OF THE INCOME-TAX ACT, 1 961. ITA 1767/12 :- 2 -: 2. THE GROUNDS RAISED BY THE REVENUE IN THE PRESENT APPEAL READ AS BELOW : 2. THE ORDER OF THE LEARNED COMMISSIONER OF INCOM E- TAX(APPEALS) IS AGAINST THE LAW, AS EXPLANATION TO SUB-SECTION (13) OF SECTION 80-IA STATES THAT :- FOR REMOVAL DOUBTS, IT IS HEREBY DECLARED THAT NOTHING CONTAINED IN THE SECTION SHALL APPLY TO A PERSON WHO EXECUTES A WORKS CONTRACT ENTERED INTO WITH UNDERTAKING OR ENTERPRISE AS THE CASE MAY BE. THE ASSESSEE COMPANY IS A SUB-CONTRACTOR FOR M/S. S OUTH INDIA CORPORATION LIMITED WHICH IS THE CONTRACTOR F OR M/S. ST- CMS ELECTRIC COMPANY PVT. LTD. 3. THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) FAILED TO TAKE INTO CONSIDERATION THE ABOVE EXPLANATION OF THE FINANCE ACT, 2007. 4. THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) OUGHT TO HAVE OBSERVED THAT THE ASSESSEE COMPANY EXECUTED A WORKS CONTRACT ON BEHALF OF OTHER COMPANY. THE ASS ESSEE COMPANY WAS ONLY A SUB CONTRACTOR EXECUTING A CONTR ACT ON BEHALF OF OTHERS AND WAS SQUARELY COVERED UNDER THE ABOVE EXPLANATION AND THUS INELIGIBLE FOR DEDUCTION U/S 8 0-IA. 5. THE LEARNED THE COMMISSIONER OF INCOME-TAX(APPE ALS) OUGHT TO HAVE OBSERVED THAT THE ASSESSEE ALSO DOES NOT ITA 1767/12 :- 3 -: SATISFY ALL THE CONDITIONS ENUMERATED IN SUB-SECTIO N(4) OF SECTION 80-IA. 3. THE ISSUE HAS BEEN CONSISTENTLY CONSIDERED AND D ECIDED BY INCOME-TAX APPELLATE TRIBUNAL IN ASSESSEES OWN CAS E FOR ALL THE EARLIER ASSESSMENT YEARS FROM 2003-04 TO 2008-09. THE TRIBUNAL HAS ACCEPTED THE CONTENTION OF THE ASSESSEE IN THE MATTER OF ITS CLAIM MADE UNDER SEC.80-IA. THE CASE HAS BEEN CONS IDERED EVEN AFTER EXPLANATION TO SUB-SEC. (13) OF SEC.80-I A WAS INSERTED. REFERENCE MAY BE MADE TO THE ORDERS OF THE TRIBUNAL FOR ASSESSMENT YEARS 2007-08 AND 2008-09. 4. IN THESE CIRCUMSTANCES, WE FIND THAT THIS APPEAL FILED BY THE REVENUE IS LIABLE TO BE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON WEDNESDAY, THE 21 ST OF NOVEMBER, 2012 AT CHENNAI. SD/- SD/- (VIKAS AWASTHY) (DR.O. K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 21 ST NOVEMBER, 2012 MPO* COPY TO : APPELLANT/RESPONDENT/CIT/CIT(A)/DR