ACIT, New Delhi V. M/s. DCM Shriram Consolidated Ltd., New Delhi

ITA 257/DEL/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3536 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 28-07-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 18-01-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GEORGE STEPHEN
• Section: 80IA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B : NEW DELHI BEFORE SHRI R.P.TOLANI, JM AND SHRI R.C.SHARMA, AM ITA NO.257/DEL/2010 ASSESSMENT YEAR : 2006-07 ASSTT.COMMISSIONER OF INCOME TAX, CIRCLE-10(1), NEW DELHI. VS. M/S DCM SHRIRAM CONSOLIDATED LTD., 6 TH FLOOR, KANCHENJUNGA BUILDING, BARAKHAMBA ROAD, NEW DELHI. PAN NO.AAACD0097R. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI GEORGE STEPHEN, CIT-DR. RESPONDENT BY : SHRI PRADEEP DINODIA, CA, SHRI R.K.KAPOOR & SHRI V.P.GUPTA, ADVOCATES. ORDER PER R.C.SHARMA, AM : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) DATED 3.11.2009 FOR THE AY 2006-07 WHEREIN CLAIM OF DEDUC TION U/S 80IA ALLOWED BY THE CIT(A) WAS ALLEGED TO BE INCORRECT. 2. AT THE OUTSET, LEARNED AR PLACED ON RECORD THE O RDER OF ITAT DATED 29.1.2010 FOR THE AY 2005-06, WHEREIN EXACTLY SIMIL AR ISSUE WAS DEALT WITH AND THE APPEAL WAS ALLOWED IN FAVOUR OF THE ASSESSEE WI TH REGARD TO CLAIM OF DEDUCTION U/S 80-IA. 3. WE HAVE GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW AND ALSO ORDERS OF THE TRIBUNAL PASSED IN ASSESSEES OWN CASE. FROM T HE RECORD, WE FOUND THAT THE ASSESSEE COMPANY WAS HAVING FIVE INDUSTRIAL UNDERTA KINGS ENGAGED IN THE BUSINESS OF GENERATION OF POWER AND PROFIT DERIVED FROM SAME AMOUNTING TO RS.29,92,47,044/- WAS CLAIMED AS DEDUCTIBLE U/S 80I A OF THE ACT. THE AO HAD ITA-257/DEL/2010 2 DISALLOWED THE CLAIM IN VIEW OF THE STAND OF THE DE PARTMENT IN EARLIER YEARS. SIMILAR CLAIM HAS ALSO BEEN ADJUDICATED IN APPEALS OF THE COMPANY FOR AY 2003- 04 AND 2004-05. IN ALL THESE YEARS, THE CLAIM WAS ALLOWED BY CIT(A) IN ASSESSEES FAVOUR AND ORDER OF CIT(A) WAS UPHELD BY THE TRIBUN AL. IN THE ORDER FOR AY 2005-06 AT PARA 3 & 4, THE TRIBUNAL HAS DEALT WITH THE ISSUE AND FOUND THAT SIMILAR CLAIM OF DEDUCTION FOR THE AY 2002-03 TO 2005-06 WA S ALLOWED BY THE TRIBUNAL IN ASSESSEES FAVOUR. LEARNED DR ALSO FAIRLY CONCEDED THAT EVEN HON'BLE DELHI HIGH COURT IN ASSESSEES OWN CASE WHICH WAS REPORTED AT 176 TAXMAN 49 UPHELD THE ORDER OF THE TRIBUNAL FOR AY 1997-98 WHEREIN CLAIM OF DEDUCTION U/S 115JA WAS ALLOWED IN ASSESSEES FAVOUR. AS THE FACTS AND LEG AL POSITION IN RESPECT OF THE YEAR UNDER CONSIDERATION ARE ALSO IDENTICAL WITH THE FAC TS FOR AY 2002-03 TO 2005-06, RESPECTFULLY FOLLOWING THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF CIT(A) FOR ALLOW ING CLAIM OF DEDUCTION U/S 80IA. LEARNED DR ALSO FAIRLY CONCEDED THE POSITION OF ALL OWABILITY BY THE TRIBUNAL AS WELL AS BY THE HIGH COURT OF ASSESSEES CLAIM FOR D EDUCTION U/S 80IA. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 28 TH JULY, 2010. SD/- SD/- (R.P.TOLANI) (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 28.07.2010. VK. COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT DEPUTY REGISTRAR ITA-257/DEL/2010 3