The Dy. CIT., Circle-1(1), Baroda V. Gujarat State Fertilizers & Chemicals Ltd., Baroda

ITA 2312/AHD/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5685 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 11-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income
• Section: 143(3); 14A; 115JB; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI S. S. GODARA, JUDICIAL MEMBER) ITA. NO: 2312/AHD/2014 (ASSESSMENT YEAR: 2006-07) THE DCIT, CIRCLE-1(1), BARODA V/S GUJARAT STATE FERTILIZERS & CHEMICALS LTD. P.O. FERTILIZER NAGAR, BARODA- 391750 (APPELLANT) (RESPONDENT) PAN: AAACG7996C APPELLANT BY : SHRI K. MADHUSUDAN, SR. D .R. RESPONDENT BY : SHRI SANJAY R. SHAH ( )/ ORDER DATE OF HEARING : 25 -07-201 7 DATE OF PRONOUNCEMENT : 27-07-2017 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE LD. CIT(A)- I, BARODA DATED 23.05.2014 PERTAINING TO A.Y. 2006- 07. ITA NO 2312/ AHD/2014 . A.Y. 2006-07 2 2. THE SUM AND SUBSTANCE OF THE GRIEVANCE OF THE REVEN UE IS THAT THE LD. CIT(A)ERRED IN DELETING THE ADDITION OF RS. 4.86 CR ORES MADE IN THE COMPUTATION OF BOOK PROFIT U/S. 115JB OF THE ACT ON ACCOUNT OF EXPENDITURE RELATED TO EXEMPT INCOME COMPUTED U/S. 14A R.W.R. 8 D OF THE ACT. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE A SSESSMENT U/S. 143(3) WAS COMPLETED ON 26.12.2008 AT RS. 202,70,19,560/- AND THE BOOK PROFIT WAS COMPUTED AT RS. 423,99,08,469/-. 4. SUBSEQUENTLY, THE COMPLETED ASSESSMENT WAS REOPENED AND NOTICE U/S. 148 OF THE ACT WAS ISSUED AND SERVED UPON THE ASSES SEE. THE COMPLETED ASSESSMENT WAS REOPENED BY ISSUING A SHOW CAUSE NOT ICE REQUESTING THE ASSESSEE TO OFFER THEIR EXPLANATION AS TO WHY EXPEN DITURE ON EXEMPT INCOME SHOULD NOT BE DISALLOWED U/S. 14A OF THE ACT . 5. WE FIND THAT THE REOPENING OF THE ASSESSMENT WAS CH ALLENGED BEFORE THE TRIBUNAL AND THE TRIBUNAL VIDE ORDER DATED 30.01.20 15 IN ITA NOS. 2444 & 2445/AHD/2011 QUASHED THE NOTICE ISSUED U/S. 148 OF THE ACT AND DECIDED THE ISSUE OF REOPENING IN FAVOUR OF THE ASSESSEE. 6. SINCE, THE BASIS OF THE COMPUTATION OF BOOK PROFIT U/S. 115JB OF THE ACT HAS BEEN REMOVED BY THE TRIBUNAL BY ITS ORDER (SUPRA), WE DO NOT FIND ANY MERIT IN THIS APPEAL OF THE REVENUE. ITA NO 2312/ AHD/2014 . A.Y. 2006-07 3 7. APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 27 - 07- 20 17 SD/- SD/- (S.S. GODARA) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY ACCOUNTANT MEMBER AHMEDABAD: DATED 27 /07/2017 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD