M/s Aerowin International, Baddi V. ITO, Parwanoo

ITA 255/CHANDI/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90185 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 11-04-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 10-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAKESH GUPTA
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B, CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R.SOOD, ACCOUNTANT MEMBER ITA NO. 255/CHD/2015 (ASSESSMENT YEAR : 2008-09) M/S AEROWIN INTERNATIONAL, VS. THE INCOME TAX OFFICER, BEHIND COCA-COLA FACTORY, PARWANOO. VILLAGE KATHA, BADDI. PAN: AAIFA8458N (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAKESH GUPTA RESPONDENT BY : SHRI R.K.GUPTA, DR DATE OF HEARING : 02.06.2015 DATE OF PRONOUNCEMENT : 04.06.2015 O R D E R PER BHAVNESH SAINI, J.M. : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS), SHIMLA DATED 29.12.2014 FOR ASSESSMENT YEAR 2008-09 , CHALLENGING THE ORDER OF LEARNED CIT (APPEALS) IN D ISALLOWING DEDUCTION UNDER SECTION 80IC OF THE INCOME TAX ACT OF RS.13,72,264/- ON ACCOUNT OF INTEREST RECEIVED FROM DEBTORS FOR THE LATE PAYMENT. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE ASS ESSEE FIRM DERIVED INCOME FROM MANUFACTURING OF ELECTRIC FANS. THE 2 ASSESSING OFFICER NOTED THAT THE AMOUNT OF INTEREST RECEIVED BY THE ASSESSEE OF RS.13,72,264/- HAS NOT BEEN OFFE RED FOR TAXATION. THE ASSESSING OFFICER ASKED THE ASSESSE E TO EXPLAIN WHY ADDITION SHOULD NOT BE MADE AS IT HAS NO FIRST DEGREE NEXUS WITH THE INDUSTRIAL UNDERTAKING. THE ASSESSE E CONTENDED THAT THE INTEREST HAS BEEN RECEIVED FROM DEBTORS ON ACCOUNT OF LATE PAYMENT AND IT IS PART OF SALE. THUS IT IS ALSO ELIGIBLE FOR DEDUCTION UNDER SECTION 80IC OF T HE ACT. THE ASSESSING OFFICER, HOWEVER, DENIED SUCH BENEFIT TO THE ASSESSEE BY FOLLOWING THE DECISION IN THE CASE OF LIBERTY INDIA VS. CIT, 317 ITR 218 AND MADE THE ADDITION. 3. THE LEARNED CIT (APPEALS) NOTED THAT THE ASSESS EE NEITHER AT ASSESSMENT STAGE NOR AT APPELLATE STAGE HAS FILED ANY EVIDENCE IN SUPPORT OF THE CONTENTION THAT THE INTEREST HAS BEEN RECEIVED FROM THE DEBTORS AND FORMS PART O F THE SALE. THE LEARNED CIT (APPEALS) FOLLOWING THE REASONING G IVEN BY THE ASSESSING OFFICER CONFIRMED THE ADDITION. 4. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF BO TH THE PARTIES AND PERUSED THE FINDINGS OF THE AUTHORI TIES BELOW. THE HON'BLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF PHATELA COTGIN INDUSTRIES P. LTD. VS. CIT, 303 ITR 411 HELD HAS UNDER : HELD, THAT THE TRIBUNAL WAS UNJUSTIFIED IN NOT ALLOWING THE BENEFIT UNDER SECTIONS 80HH AND 80-I T O THE ASSESSEE ESPECIALLY WHEN THE BENEFIT HAD BEEN ALLOW ED FOR THE PRECEDING YEARS FOR SIMILAR ACTIVITIES. THE IN TEREST WHICH WAS RECEIVED ON DELAYED PAYMENTS ON ACCOUNT O F 3 SALE TO CUSTOMERS OF MANUFACTURED GOODS COULD CLEAR LY BE TERMED TO BE INCOME DERIVED FROM THE INDUSTRIAL UNDERTAKING AND WAS DISTINCT FROM INCOME ON ACCOUNT OF INTEREST WHICH HAD BEEN RECEIVED FROM FIXED DEPOSIT . 5. THE I.T.A.T., CHANDIGARH BENCH ALSO IN THE CAS E OF M/S SWASTIK WIRE PRODUCT VS. ITO IN ITA NO.397/CHD/ 2014 VIDE ORDER DATED 15.7.2014 BY FOLLOWING THE SAME DE CISION OF THE HON'BLE PUNJAB & HARYANA HIGH COURT ABOVE, HAS ALLOWED THE CLAIM OF THE ASSESSEE AND DIRECTED THE ASSESSIN G OFFICER TO ALLOW THE CLAIM OF DEDUCTION UNDER SECTION 80IC OF THE ACT ON THE INTEREST INCOME RECEIVED FROM THE CUSTOMERS. THE COPY OF THE ORDER IS PLACED ON RECORD BY THE LEARNED COUNSE L FOR ASSESSEE. CONSIDERING THE FACTS OF THE CASE IN T HE LIGHT OF THE ABOVE DECISION, IT IS CLEAR THAT THE ASSESSEE W OULD BE ENTITLED FOR DEDUCTION UNDER SECTION 80IC OF THE AC T ON THE INTEREST WHICH HAS BEEN RECEIVED FROM THE DEBTORS O N ACCOUNT OF LATE PAYMENT. HOWEVER, THE LEARNED D.R FOR THE REVENUE CONTENDED THAT THE LEARNED CIT (APPEALS) NOTED IN T HE APPELLATE ORDER THAT THE ASSESSEE HAS NEITHER AT TH E ASSESSMENT STAGE NOR AT THE APPELLATE STAGE HAS FIL ED ANY EVIDENCE IN SUPPORT OF THE CONTENTION THAT THE INTE REST HAS BEEN RECEIVED FROM THE DEBTORS FORMS PART OF THE SA LE. IN VIEW OF THE ABOVE FACTS RECORDED BY THE LEARNED CIT (APPEALS) IN THE IMPUGNED ORDER AND CONSIDERING THE SUBMISSIO N OF THE LEARNED D.R FOR THE REVENUE, WE SET ASIDE THE ORDER OF THE AUTHORITIES BELOW AND RESTORE THE MATTER IN ISSUE T O THE FILE OF THE ASSESSING OFFICER WITH DIRECTION TO RE-EXAMINE THE ISSUE AND IN CASE INTEREST HAS BEEN RECEIVED FROM DEBTORS ON 4 ACCOUNT OF LATE PAYMENT BEING PART OF THE SALE, THE ASSESSING OFFICER SHALL ALLOW DEDUCTION TO THE ASSESSEE UNDER SECTION 80IC OF THE ACT. THE ASSESSING OFFICER SHALL GIVE REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 4 TH DAY OF JUNE, 2015. (T.R.SOOD) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 4 TH JUNE, 2015 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH