DCIT,Corporate Circle-1, Coimbatore V. Suguna Foods Ltd (Formerly Suguna Poultru Farm Ltd, Coimbatore

ITA 2239/CHNY/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 4265 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 13-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S VIJAYAPRABHA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , . !'# ! , % !& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.2239/CHNY/2017 ( )( / ASSESSMENT YEAR : 2011-12 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE -1, 63-A, RACE COURSE ROAD, COIMBATORE. V. M/S SUGUNA FOODS LIMITED (FORMERLY KNOWN AS SUGUNA POULTRY FARM LIMITED), 5 TH FLOOR, 1057, AVINASHI ROAD, COIMBATORE 641 018. PAN : AADCS 0655 F (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : MS. S. VIJAYAPRABHA, JCIT -.+, / 0 / RESPONDENT BY : SHRI N. ANUSH SHANKER, FCA SHRI K.R. VASUDEVAN, ADVOCATE 1 / 2% / DATE OF HEARING : 25.09.2018 3') / 2% / DATE OF PRONOUNCEMENT : 25.10.2018 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -1, COIMBATORE , DATED 29.06.17 AND PERTAINING TO ASSESSMENT YEAR 2011-12. 2 I.T.A. NO.2239/CHNY/17 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IN THE A PPEAL IS WITH REGARD TO CLAIM OF DEDUCTION UNDER SECTION 80-IB(10 ) OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). 3. MS. S. VIJAYAPRABHA, THE LD. DEPARTMENTAL REPRES ENTATIVE, SUBMITTED THAT THE ASSESSEE CLAIMED DEDUCTION UNDER SECTION 80-IB(10) OF THE ACT IN RESPECT OF POULTRY FEED MANUFACTURED. DURING THE YEAR UNDER CONSIDERATION, ACCORDING TO THE LD. D.R., THE ASSES SEE HAS NOT MADE ANY SALES TO THE OUTSIDER / 3 RD PARTY. THE ENTIRE PRODUCTS WERE USED FOR THE CONSUMPTION OF SELF AND SISTER CONCERN. THEREFORE, ACCORDING TO THE LD. D.R., THE ASSESSEE IS NOT ELIGIBLE FOR DEDUCTION UN DER SECTION 80-IB OF THE ACT. 4. ON THE CONTRARY, SHRI N. ANUSH SHANKER, THE LD. REPRESENTATIVE FOR THE ASSESSEE, SUBMITTED THAT AN IDENTICAL ISSUE CAME BEFORE THIS TRIBUNAL IN THE ASSESSEE'S OWN CASE FOR ASSESSMENT YEAR 2010-11 IN I.T.A. NO.1396/MDS/2015. THIS TRIBUNAL FOUND THAT THE ACTIVITY OF THE ASSESSEE AMOUNTS TO MANUFACTURE AND THEREFORE, ELIG IBLE FOR DEDUCTION UNDER SECTION 80-IB OF THE ACT. MOREOVER, ACCORDIN G TO THE LD. REPRESENTATIVE, THE CAPTIVE CONSUMPTION IS ALSO ELI GIBLE FOR DEDUCTION UNDER SECTION 80-IB OF THE ACT. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE ELIGIBILITY OF THE ASSESSEE FOR DEDUCTION UNDER SECTION 80-IB OF THE A CT IS NOT DISPUTED. 3 I.T.A. NO.2239/CHNY/17 THE LD. D.R. CLAIMS THAT DURING THE YEAR UNDER CONS IDERATION, THERE WAS NO SALES TO THE THIRD PARTIES. THE ENTIRE PRODUCTS MANUFACTURED BY THE ASSESSEE WERE CONSUMED BY THE ASSESSEE ITSELF. THE REFORE, THE QUESTION ARISES FOR CONSIDERATION IS WHEN THE PRODU CTS MANUFACTURED BY THE ASSESSEE ARE CONSUMED CAPTIVELY OR FOR ITS OWN USE, WHETHER THE ASSESSEE IS ELIGIBLE FOR DEDUCTION UNDER SECTION 80 -IB OF THE ACT? THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT EVEN THO UGH THE PRODUCTS MANUFACTURED BY THE ASSESSEE ARE CONSUMED CAPTIVELY OR BY THE ASSESSEE ITSELF, THE ASSESSEE IS STILL ELIGIBLE FOR DEDUCTION UNDER SECTION 80-IB OF THE ACT. MOREOVER, THIS TRIBUNAL IN THE ASSESSEE'S OWN CASE FOR ASSESSMENT YEAR 2010-11 IN I.T.A. NO.1396/MDS/2015, FOUND THAT THE ASSESSEE IS ELIGIBLE FOR DEDUCTION UNDER SECTION 80 -IB OF THE ACT. IN VIEW OF THE ABOVE, THIS TRIBUNAL DO NOT FIND ANY REASON TO TAKE A DIFFERENT VIEW THAN THAT OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL FOR ASSESSMENT YEAR 2010-11. THEREFORE, THE ORDER OF THE CIT(APPEALS) IS CONFIRMED. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE COURT ON 25 TH OCTOBER, 2018 AT CHENNAI. SD/- SD/- (. !'# ! ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 25 TH OCTOBER, 2018. 4 I.T.A. NO.2239/CHNY/17 KRI. / -267 87)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 92 () /CIT(A)-1, COIMBATORE 4. PRINCIPAL CIT-1, COIMBATORE 5. 7: -2 /DR 6. ( ; /GF.