The DCIT(OSD-1)Circle-4, Ahmedabad V. Kiri Dyes Inds.Ltd., Ahmedabad

ITA 2026/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1313 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 28-06-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 07-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIV SEWAK
• Assessee Lawyers: PARIMAL SINGH PARMAR
• Section: 10B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SHR I S. S. GODARA , JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER THE DCIT(OSD) - I, CIRCLE - 4, AHMEDABAD, NAVJIVAN TRUST BLDG., OFF. ASHRAM ROAD, AHMEDABAD (APPELLANT) VS KIRI DYES INS. LTD. (FORMERLY KNOWN AS KIRI DYES & CHEMICAL LTD.), 53, MANEKBAUG SOC, AMBAWADI, AHMEDABAD - 380015 P AN: AAACK9025C (RESPONDENT) REVENUE BY : S H RI SHIV SEWAK , SR. D . R. ASSESSEE BY: S H RI PARIMALSINGH PARMAR , A.R. DATE OF HEARING : 28 - 06 - 2 016 DATE OF PRONOUNCE MENT : 30 - 06 - 2 016 / ORDER P ER : S. S. GODARA , JUDICIAL MEMBER : - THIS REVENUE S APPEAL FOR A.Y. 2003 - 04 , AR ISES FROM ORDER OF THE CIT(A) - VIII, AHMEDABAD DATED 26 - 06 - 2012 IN APPEAL NO. CIT(A) - VIII/DC - 4/44/11 - 12 , IN PROCEEDINGS U NDER SECTION 271(1 ) (C) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . I T A NO . 2026 / A HD/20 12 A SSESSMENT YEAR 200 3 - 04 I .T.A NO. 2026 /AHD/20 12 A.Y. 2003 - 04 PAGE NO DCIT VS. KIRI DYES INS. LTD. 2 2. THE REVENUE RAISES THE FOLLOWING SOLITARY SUBSTANTIVE GROUND: - 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE PENALTY LEVIED U/S. 271(L)(C) OF THE ACT OFRS.1,39 ,0 2,025/ - WITHOUT APPRECIATING THE FACTS TH AT THE ASSESSEE HAD FURNISHED INACCURATE PARTICULARS OF INCOME AND THEREBY CONCEALED THE TRUE INCOME. THE ASSESSEE HAD CLAIMED DEDUCTION U/S. 10B OF THE ACT WITHOUT FULFILLING THE CONDITIONS LAID DOWN UNDER THIS ACT INASMUCH AS INCOME DISCLOSED BY THE ASSE SSEE FROM INCENTIVE LIKE DEOB, DUTY DRAW BACK, DEPB DIFFERENCE, EXCISE DUTY DIFFERENCE AND INTEREST WERE CONSIDERED AS INCOME DERIVED BY THE ASSESSEE FROM 100% EOU. FURTHER THE CERTIFICATE FILED BY THE ASSESSEE WITH REGARD TO EXPORT REALIZATION ON 28.03.20 05 WAS DEFECTIVE AND THE CONSIDERATION AMOUNTING TO RS. 4 , 84,78,890/ - REMAINED UNREALIZED TILL 31.03.2003 AND SINCE THE CERTIFICATE WAS ISSUED ON 1.11.2002, IT WAS NOT HOLDING THE STATUS OF 100% EOU FOR THE WHOLE YEAR. 3. WE HAVE HEARD RIVAL CONTENTIONS AGAINST AND IN SUPPORT OF THE LOWER APPELLATE ORDER DELETING THE IMPUGNED PENALTY OF RS. 1,39,02,025/ - AS IMPOSED BY THE ASSESSING OFFICER ON DISALLOWANCE OF SECTION 10B DEDUCTION AMOUNTING TO RS. 3,78,28,641/ - INTER ALIA ON THE GROUND THAT THE ASSESSEE D ID NOT HOLD STATUS OF A 100% EXPORT ORIENTED UND ERTAKING FOR WHOLE OF THE YEAR. LD. AUTHORIZED REPRESENTATIVE SUBMITS THAT THE CIT(A) DELETED THE ABOVE STATED QUANTUM DISALLOWANCE IN HIS ORDER DATED 30 - 11 - 2009. BOTH PARTIES CAME IN APPEAL ITA NOS. 814 & 1035/AHD/2010 BEFORE THE TRIBUNAL RAISING THIS SECTION 10B ISSUE. A CO - ORDINATE IN ORDER DATED 07 - 03 - 2014 HAS REMITTED THE ISSUE BACK TO THE ASSESSING OFFICER FOR AFRESH DECISION AS PER LAW. COPY OF THIS ORDER IS ALSO PLACED ON RECORD. 4. WE HAVE HEAR D BOTH THE PARTIES. C ASE FILE PERUSED. THERE IS NO DISPUTE THAT THIS TRIBUNAL HAS ALREADY REMITTED SECTION 10B I .T.A NO. 2026 /AHD/20 12 A.Y. 2003 - 04 PAGE NO DCIT VS. KIRI DYES INS. LTD. 3 QUANTUM ISSUE BACK TO THE ASSESSING OFFICER AS INDICATED HEREINABOVE. WE ARE ACCO RDI NGLY OF THE OPINION THAT THE IMPUGNED PENALTY HAS NO LEGS TO STAND AS OF NOW. WE FIND NO REASON TO INTERFERE WITH THE CIT(A) S ORDER DELETING THE IMPUGNED PENALTY ON MERITS IN FACTS AND CIRCUMSTANCES. IT IS HOWEVER MADE CLEAR THAT OUR THIS ORDER SHALL NOT COME IN THE WAY OF LD. ASSESSING OFFICER IF HE FINDS ANY ELEMENT OF CONCEALMENT OR FURNISHING OF INACCURATE PARTICULAR OF INCOME AT ASSESSEE S BEHEST WHILST FRAMING CONSEQUENTIAL ASSESSMENT IN FURTHERANCE TO THIS TRIBUNAL S QUANTUM ORDER HEREIN ABOVE. WE DISMISS THE INSTANT APPEAL WITH THIS CAVEAT. 5. THIS R EVENUE S APPEAL IS ACCORDINGLY DISMISSED IN ABOVE TERMS. ORDER PR ONOUNCED IN THE OPEN C OURT ON 30 - 06 - 201 6 SD/ - SD/ - ( MANISH BORAD ) ( S. S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 30 /06 /2016 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , I .T.A NO. 2026 /AHD/20 12 A.Y. 2003 - 04 PAGE NO DCIT VS. KIRI DYES INS. LTD. 4 / ,