The Income-tax Officer, Jammu V. M/s. Kanchan Soap & Detergents, Jammu

ITA 244/ASR/2012

• Counselvise Citation: 24420914 RSA 2012
• Duration Of Justice: 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 06-08-2012
• Assessment Year: 2009-2010
• Appeal Filed On: 29-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Capital receipt
• Section: 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NOS. 243 & 244(ASR)/2012 ASSESSMENT YEARS:2007-08 & 2009-10 PAN :AAHFK8675Q INCOME-TAX OFFICER, VS. M/S. KANCHAN SOAP & DETER GENTS, WARD-1(2), JAMMU. GANTYAL, JAMMU. (APPELLANT) (RESPONDENT) APPELLANT BY:SH. TARSEM LAL, DR RESPONDENT BY: NONE DATE OF HEARING: 06/08/2012 DATE OF PRONOUNCEMENT:06/08/2012 ORDER PER BENCH ; THESE TWO APPEALS FILED BY THE REVENUE ARE DIRECTED AGAINST THE DIFFERENT IMPUGNED ORDERS OF CIT(A), JAMMU, EACH DA TED 23.03.2012 FOR THE ASSESSMENT YEARS 2007-08 & 2009-10 ON THE FOLLOWIN G COMMON GROUNDS: 1 ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. CIT(A) WAS RIGHT IN ALLOWING RELIEF ON ACCOUNT OF DEDUCTION U/ S 80IB ON CENTRAL EXCISE DUTY REFUND BY RELYING UPON ORDERS OF HON'BL E HIGH COURT IF J&K, JAMMU WHICH HAS BEEN DELIVERED NOT ON MERITS O F THE ISSUE BUT HOLDING THE RECEIPT TO BE A CAPITAL RECEIPT ONLY BE CAUSE THE POLICY UNDER WHICH THE SAME WAS PAID ENVISAGED TACKLING TH E UNEMPLOYMENT ITA NOS. 243 & 244(ASR)/2012 2 IN THE STATE WHICH CANNOT BE SAID TO BE A GOOD TEST FOR DECIDING WHETHER A RECEIPT IS A TRADING RECEIPT OR A CAPITAL RECEIPT. 2. ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. C IT(A) WAS RIGHT IN FACTS AND CIRCUMSTANCES AND IN LAW IN NOT APPRECIATING THE JUDGMENTS OF HON'BLE SUPREME COURT OF INDIA IN THE CASE OF PONNI SUGAR & SAWHNEY STEEL AND PRESS WORKS LTD, WHEREIN THE HON'BLE SUPREME COURT HAD HELD SUCH RECEIPTS TO BE THE REVE NUE RECEIPTS IN AS MUCH AS IN THAT CASE PAYMENTS WERE MADE ONLY AFTER THE INDUSTRIES HAD BEEN SET UP AND PAYMENTS WERE NOT MADE FOR PURPOSE OF SETTING UP OF INDUSTRIES. 3. ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. C IT(A) WAS RIGHT IN FACTS AND CIRCUMSTANCES AND IN LAW IN NOT CONSIDERING THE DECISION IN THE CASE OF SEAHAM HARBOUR DOCK COMPANY WHICH LAYS DOWN TWO IMPORTANT TESTS FOR DETERMINING WHETHER RE CEIPTS IS A TRADING RECEIPT OR A CAPITAL RECEIPT. 4. ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. C IT(A) WAS RIGHT IN FACTS AND CIRCUMSTANCES AND IN LAW IN NOT APPRECIATING AND APPLIED THE PURPOSE TEST AS LAID DOWN BY THE JUDGME NTS OF THE HON'BLE SUPREME COURT. IN THE CASE OF ASSESSEE, THE MONEY RECEIVED BY THE ASSESSEE ON ACCOUNT OF REFUND OF CENTRAL EXCISE WAS NOT SUPPOSED TO BE SPENT IN A PARTICULAR MANNER FOR PURPOSE OF SUBS TANTIAL EXPANSION OF THE INDUSTRY. 3. NOTICE OF HEARING WAS ISSUED TO THE ASSESSEE BY RPAD FOR 06.08.2012. DESPITE THIS, NEITHER THE ASSESSEE NOR HIS AUTHORIZ ED REPRESENTATIVE APPEARED ON THE DATE OF HEARING. THE ASSESSEE HAS NOT EVEN F ILED ANY ADJOURNMENT APPLICATION. KEEPING IN VIEW THE FACTS AND CIRCUMST ANCES, WE ARE OF THE VIEW THAT NO USEFUL PURPOSE WOULD BE SERVED IF THE NOTIC E IS ISSUED TO THE ASSESSEE ITA NOS. 243 & 244(ASR)/2012 3 AGAIN AND AGAIN. THEREFORE, WE DISPOSING OF THE PRE SENT APPEAL EX-PARTE AFTER HEARING THE LEARNED DR. 3. AFTER HEARING THE LD. DR AND PERUSING THE RELE VANT MATERIAL AVAILABLE WITH US, WE ARE OF THE VIEW THAT THE IS SUE DISPUTE IN THE PRESENT APPEALS IS RELATING TO DEDUCTION UNDER SECTION 80 IB ON EXCISE DUTY REFUND AND IT IS AN ADMITTED FACT THAT THE ISSUE IN DISPUT E HAS ALREADY BEEN ADJUDICATED AND DECIDED IN FAVOUR OF THE ASSESSEE B Y THE DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT OF JAMMU & KASHMI R IN THE CASE OF SHREE BALAJI ALLOYS V. CIT AND ANOTHER (2011) 333 ITR 335 (J&K) BY HOLDING THAT THE EXCISE DUTY REFUND IS TO BE TREATED AS CAPITAL RECEIPT AND NOT LIABLE TO BE TAXED. 3.1. THE LD. FIRST APPELLATE AUTHORITY HAS ALSO DE CIDED THIS ISSUE IN FAVOUR OF THE ASSESSEE BY RELYING UPON THE DECISION OF TH E HON'BLE JURISDICTIONAL HIGH COURT OF J & K, IN THE CASE OF SHREE BALAJI A LLOYS V. CIT AND ANOTHER (2011) 333 ITR 335 (J&K). THEREFORE, RESPECTFULLY F OLLOWING THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT (SURPA), WE D ISMISS THE APPEAL OF THE REVENUE RELATING TO EXCISE DUTY REFUND. ITA NOS. 243 & 244(ASR)/2012 4 4. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 6TH AUGUST, 2012. SD/- SD/- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:6TH AUGUST, 2012 /SKR/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: M/S. KANCHAN SOAP & DETERGENTS, GANTY AL, JAMMU. 2. THE WARD-1(2), JAMMU. 3. THE CIT(A), JAMMU 4. THE CIT , JAMMU 5. THE SR DR, ITAT, AMRITSAR.