The ACIT,Vapi Circle, Vapi V. M/s. Bhagat Textiles Engineers, Dadra

ITA 2252/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 85808 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 06-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALOK JOHRI
• Assessee Lawyers: S N SOPARKAR
• Section: 143(3); 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH AHMEDABAD , LH LHLH LH BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI N. S. SAINI, ACCOUNTANT MEMBER. ITA. NO. 2252/AHD/2011 (ASSESSMENT YEAR:2008-09) ASSISTANT COMMISSIONER OF INCOME TAX VAPI CIRCLE, VAPI APPELLANT VS. M/S BHAGAT TEXTILES ENGINEERS 122/6, GROUND FLOOR, WAGHDHARA, DADRA RESPONDENT PAN: AAFFB8401R /BY APPELLANT : SHRI ALOK JOHRI, CIT D.R. /BY RESPONDENT : SHRI S. N. SOPARKAR, A.R. !' /DATE OF HEARING : 03.03.2015 #$% !' /DATE OF PRONOUNCEMENT : 13.03.2015 ITA NO. 2252/AHD/11 A.Y. 2008-09 [ACIT VS. M/S. BHAGAT TEXTILE ENGINEERS] PAGE 2 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY REVENUE AGAINST THE O RDER OF COMMISSIONER OF INCOME TAX (APPEALS), VALSAD, DATED 30.06.2011 FOR A.Y. 2008-09 ON THE FOLLOWING GROUND S. 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) HAS ERRED IN TREATING THE ACTIVI TY OF THE ASSESSEE AS MANUFACTURING ACTIVITY AND OBSERVIN G THAT THE ASSESSEE IS ELIGIBLE FOR DEDUCTION U/S. 80 IB AMOUNTING TO RS.5,55,42,533/- THE I.T. ACT, 1961. 2. IT IS THEREFORE, PRAYED THAT THE ORDER OF THE LE ARNED CIT(A) BE SET ASIDE AND THAT OF THE ASSESSING OFFIC ER BE RESTORED. 2. ASSESSEE IS A PARTNERSHIP FIRM AND CLAIMED TO HA VE RUNNING AN INDUSTRIAL UNDERTAKING IN THE NAME AND S TYLE OF M/S. BHAGAT TEXTILE ENGINEERS IN BACKWARD AREA OF U.T. OF DADRA & NAGAR HAVELI IS A BACKWARD UNION TERRITORY AS SPECIFIED IN THE VIIITH SCHEDULE TO THE INCOME TAX ACT. AS SUCH, MANUFACTURING UNIT OF ASSESSEE IS ELIGIBLE FO R DEDUCTION U/S. 80IB OF THE ACT. ASSESSEE HAS STARTED ITS MAN UFACTURING ACTIVITY BY 27.03.2004 WHILE PASSING THE ORDER U/S. 143(3) OF THE ACT, ASSESSING OFFICER MADE AN ADDITION OF RS.5,58,93,233/- REJECTING THE CLAIM OF ASSESSEE U/ S. 80IB OF THE ACT ON THE GROUND THAT ASSESSEES ACTIVITY OF A SSEMBLING DOES NOT COME UNDER THE DEFINITION OF MANUFACTURING ACTIVITY AS ITA NO. 2252/AHD/11 A.Y. 2008-09 [ACIT VS. M/S. BHAGAT TEXTILE ENGINEERS] PAGE 3 WELL AS ASSESSEE COULD NOT COMMENCED ITS MANUFACTUR ING ACTIVITIES BEFORE 31.03.2004. ACCORDINGLY, HE REJE CTED THE CLAIM OF ASSESSEE AMOUNTING TO RS.5,58,93,233/-. 2.1 MATTER WAS CARRIED BEFORE THE FIRST APPELLATE A UTHORITY, WHEREIN CIT(A) FOLLOWING ITS PREDECESSORS DECISION FOR A.Y. 2005-06, 06-07 & 07-08 DECIDED THE ISSUE IN FAVOUR OF ASSESSEE. 2.2 BEFORE US, LEARNED AUTHORIZED REPRESENTATIVE PO INTED OUT THAT TRIBUNAL HAS DECIDED THE SIMILAR ISSUE IN FAVO UR OF ASSESSEE BY OBSERVING AS UNDER: 4.1. WE FIND THAT IN THE PRESENT ASSESSMENT YEAR, NO ADDITIONAL FACTS HAVE BEEN BROUGHT BY THE AO EXCEPT THAT THE ACTIVITY UNDERTAKEN BY THE ASSESSEE IS NOT A MANUFACTURING ACTIVITY, BUT ONLY ASSEMBLING ACTIVIT Y. THIS TRIBUNAL FOR AY 2005-06 IN ITA NO.294/AHD/2009(SUPR A) HAS TAKEN A VIEW THAT THE ASSESSEE HAS CARRIED OUT MANUFACTURING ACTIVITY FOLLOWING THE JUDGEMENT OF H ON'BLE GUJARAT HIGH COURT RENDERED IN THE CASE OF CIT VS. SUNILBHAI KAKAD IN INCOME TAX APPEAL NO.1287 OF 201 0 AND OTHER CASE-LAWS. THEREFORE, WE FIND NO INFIRMITY I N THE ORDER OF THE ID.CIT(A). RESPECTFULLY FOLLOWING THE EARLIE R DECISION OF THE COORDINATE BENCH PASSED FOR AY 2005-06(SUPRA), WE HEREBY REJECT THIS GROUND OF REVENUE'S APPEAL. NOTHING CONTRARY WAS BROUGHT TO OUR KNOWLEDGE ON BE HALF OF REVENUE. FACTS BEING SIMILAR SO FOLLOWING SAME REA SONING, WE ARE NOT INCLINED TO INTERFERE IN THE FINDING OF CIT (A) WHO HAS TREATED ACITIVITY OF ASSESSEE AS MANUFACTURING ONE AND HELD ITA NO. 2252/AHD/11 A.Y. 2008-09 [ACIT VS. M/S. BHAGAT TEXTILE ENGINEERS] PAGE 4 THAT ASSESSEE IS ELIGIBLE FOR DEDUCTION U/S. 80IB A MOUNTING TO RS.5,55,43,533/-. SAME IS UPHELD. 3. IN THE RESULT, APPEAL FILED BY REVENUE IS DISMIS SED. PRONOUNCED IN THE OPEN COURT ON THIS THE 13 TH DAY OF MARCH, 2015. SD/- SD/- (N. S. SAINI) (SHAILENDR A KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBE R AHMEDABAD: DATED 13/03/2015 TRUE COPY S.K.SINHA & & & & ' ' ' ' ('% ('% ('% ('% / COPY OF ORDER FORWARDED TO:- 1. +, / REVENUE 2. / ASSESSEE 3. // 0 / CONCERNED CIT 4. 0- / CIT (A) 5. '45 , , / DR, ITAT, AHMEDABAD 6. 589 :; / GUARD FILE. BY ORDER / & ,