The Dy. Commissioner of Income Tax, Circle-1(1)(1), Vadodara V. M/s. Go-ish Remedies Limited, Himachal Pradesh

ITA 2064/AHD/2016

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2679 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-11-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 09-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALIT P JAIN
• Keywords: Opportunity of being heard; Reassessment proceedings
• Section: 143(3); 115JB; 263; 63

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA NO. 2064/AHD/2016 / ASSESSMENT YEAR: 2009-10 THE DY. COMMISSIONER OF INCOME-TAX, CIRCLE-1(1)(1), VADODARA VS. M/S. GO-ISH REMEDIES LIMITED, BADDI NALAGARH ROAD, VILLAGE KISHANPURA, TEHSIL BADDI, HIMACHAL PRADESH PAN : AABCG 8745 L / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI LALIT P JAIN, SR DR ASSESSEE BY : SHRI ANUJ TIWARI, AR ! / DATE OF HEARING : 15/10/2018 / DATE OF PRONOUNCEMENT: 01/11/2018 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAIN ST THE ORDER OF THE LEARNED CIT(A)-1, VADODARA DATED 18.05.2016 PAS SED FOR ASSESSMENT YEAR 2009-10. 2. THE SOLITARY GRIEVANCE OF THE REVENUE IS THAT LD . CIT(A) HAS ERRED IN ALLOWING THE DEDUCTION UNDER SECTION 80IC(2)(B) OF THE INCOME-TAX ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E HAS FILED ITS RETURN OF INCOME ELECTRONICALLY ON 27.09.2009 DECLARING TOTAL INCOME AT RS.NIL. THE ASSESSMENT ORDER WAS PASSED UNDER SECTION 143(3) OF THE ACT ON 22.12.2011 DETERMINING TOTAL INCOME AT RS.76,704/- AND INCOME UNDER SECTION 115JB OF THE ACT AT RS.57,23,690/-. AT THI S STAGE, IT IS PERTINENT TO ITA NO. 2064/AHD/2016 DCIT VS GO-ISH REMEDIES LTD FOR AY: 2009-10 2 OBSERVE THAT THE ASSESSEE HAD CLAIMED DEDUCTION UND ER SECTION 80IC(2)(II) AT RS. 60,00,021/-. THIS DEDUCTION WAS CLAIMED ON THE GROUND THAT THE UNDERTAKING IS LOCATED IN AN AREA NOTIFIED BY THE B OARD THROUGH NOTIFICATION NO.1269 (E) DATED 04.11.2003. THIS WA S ALLOWED BY THE ASSESSING OFFICER; HOWEVER, LATER ON IT WAS HARBORE D THAT KHASRA NO.573 AND 574, VILLAGE KISHANPURA, TEHSIL NALGADH, DIST. S OLAN (HP) DID NOT FIND MENTION IN THE SAID NOTIFICATION. HENCE, IT W AS WRONGLY GRANTED TO THE ASSESSEE AND, THEREFORE, ACTION UNDER SECTION 2 63 OF THE ACT WAS TAKEN UP AGAINST THE ASSESSEE. LEARNED ASSESSING OFFICER PASSED AN ASSESSMENT ORDER ON 25.03.2015 UNDER SECTION 143(3) R.W.S. 263 OF THE ACT; WHEREBY HE DISALLOWED THE CLAIM OF THE ASSESSEE. 4. ON APPEAL, LEARNED CIT(A) HAS ALLOWED THE CLAIM BY RECORDING FOLLOWING FINDINGS:- 4.3. I HAVE CONSIDERED THE FACTS OF THE CASE, THE APPELLANT'S SUBMISSION AND THE AO'S OBSERVATIONS. IN THIS CASE, THE APPELL ANT, HAD MADE CLAIM OF DEDUCTION U/S.80IC(2)(A)(II). THE APPELLANT WAS FOU ND NOT ENTITLED FOR THIS DEDUCTION UNDER THIS PARTICULAR CLAUSE AND ACCORDIN GLY DESPITE THE APPELLANT'S CLAIM THAT IT IS ELIGIBLE FOR DEDUCTION U/S.80IC(2)(B), THE AO HAS DISALLOWED THE CLAIM. A PERUSAL OF THE ASSESSME NT ORDER ITSELF SHOWS THAT THE APPELLANT HAS FULFILLED ALL THE CRITERIA F OR ALLOWING OF DEDUCTION U/S.80IC(2)(B). FURTHER, FROM THE PERUSAL OF ASSESS MENT ORDER U/S.!43(3) R.W.S.263 DATED 15/03/2016 FOR AY.2010-11, IT IS SE EN THAT THE AO HAS DROPPED THE REASSESSMENT PROCEEDINGS INITIATED IN R ESPONSE TO THE SETTING ASIDE OF THE ORIGINAL ASSESSMENT ORDER U/S.263 BY S TATING AS FOLLOWS:- 'AS PER THE DIRECTION OF HON'BLE PR.CIT, VADODARA-1 , VADODARA, IN HIS ORDER U/S. 263 EXAMINATION OF THE CLAIM OF THE ASSESSEE UNDER THE PROVISION OF LAW WAS MADE. FURTHER, NATURE OF ITEMS PRODUCED AS PER THE CONDITIONS LAID DOWN IN THE SCHEDULE 13 TH & 14 TH OF THE ACT, WAS ASCERTAINED FROM EXCISE DOCUMENTS. AFTER GIVING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE, IT WAS FOUND THAT T HE ASSESSEE'S CONTENTION IS CORRECT. THE ASSESSEE IS ELIGIBLE FOR DEDUCTION UNDER SECTION 80IC(2)(B). THERE WAS A MISTAKE IN QUOTING SECTION IN FORM 10CCB, WHICH SHOULD HAD BEEN 80IC(2)(B), INSTEAD OF 80IC(2)(A). ITA NO. 2064/AHD/2016 DCIT VS GO-ISH REMEDIES LTD FOR AY: 2009-10 3 HENCE, THE ASSESSMENT PROCEEDINGS U/S.263 IN VIEW O F THE ORDER U/S.263 DATED 02/03/2015, PASSED BY THE PR.CIT, VAD ODARA-1, VADODARA IS HEREBY DROPPED.' 4.4. THUS, THE AO IS ALSO SATISFIED THAT THE APPELL ANT IS ELIGIBLE FOR DEDUCTION U/S.80IC(2)(B), DESPITE THE MISTAKE COMMI TTED BY AUDITOR IN QUOTING SECTION IN FORM NO. 10CCB. HENCE, IN THE CU RRENT YEAR ALSO, THE AO IS DIRECTED TO ALLOW DEDUCTION U/S.80IC(2)(B) TO THE APPELLANT. 5. WITH THE ASSISTANCE OF LEARNED REPRESENTATIVES, WE HAVE GONE THROUGH THE RECORD CAREFULLY. BEFORE US, LEARNED COUNSEL FOR THE ASSESSEE PLACED ON RECORD COPY OF THE ASSESSMENT ORDER DATED 15.03.201 6 PASSED IN ASSESSMENT YEAR 2010-11 UNDER SECTION 143(3) R.W.S. 263 R.W.S. 153(3) OF THE INCOME-TAX ACT. IN THIS ASSESSMENT ORDER, HE RECORDED A FINDIN G THAT THE ASSESSEE IS ENTITLED FOR DEDUCTION UNDER SECTION 80IC(2)(B) OF THE ACT. ACCORDING TO THE ASSESSING OFFICER, THE ASSESSEE FULFILLED ALL THE N ECESSARY CONDITIONS. THE LEARNED CIT(A) HAS ACCEPTED THIS STAND OF THE ASSES SING OFFICER IN ASSESSMENT YEAR 2009-10 ALSO. TO OUR MIND, REVENUE SHOULD NOT HAVE FILED THIS TYPE OF APPEALS. ONCE THE ASSESSING OFFICER IS SATISFIED ABOUT THE FULFILLMENT OF CONDITIONS ON WHICH DEDUCTION UNDER SECTION 80IC(2)(B) IS ADMISSIBLE TO THE ASSESSEE, THEN WHILE PROCESSING T HE FILE, THE LEARNED ADMINISTRATIVE COMMISSIONER SHOULD HAVE LOOKED INTO THE RECORD BEFORE APPROVING FILING OF THE APPEAL. WITH THE ABOVE OBS ERVATIONS, WE DO NOT FIND ANY MERITS IN THIS APPEAL. IT IS DISMISSED. 6. IN THE RESULT, APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 1 ST NOVEMBER, 2018 AT AHMEDABAD. SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 01/11/2018 BIJU T., SR.PS ITA NO. 2064/AHD/2016 DCIT VS GO-ISH REMEDIES LTD FOR AY: 2009-10 4 ! &'( )( / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ! # / CONCERNED CIT 4. # ( ) / THE CIT(A) 5. & ! , ! , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION- 24.10.2018 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 24.10.2018 OTHER MEMBER 01/11/2018. 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S. - 01/11/2018. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 01/11/2018.. 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK01/1 1/2018 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 8. DATE OF DESPATCH OF THE ORDER