DCIT, Panchkula V. M/s Surya Telecom (P) Ltd., Panchkula

ITA 263/CHANDI/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5468 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2004-2005
• Appeal Filed On: 15-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S KHEMWAL
• Section: 143(3); 80IC

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A CHANDIGARH BEFORE SHRI D.K.SRIVASTAVA, ACCOUNTANT MEMBER AND MS SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.263 /CHD/2011 ASSESSMENT YEAR: 2004-05 THE DCIT, VS. M/S SURYA TELECOM (P) LTD., PANCHKULA PANCHKULA PAN NO. AAHCS3041F (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.S.KHEMWAL RESPONDENT BY: NONE ORDER PER SUSHMA CHOWLA, JM THE APPEAL BY THE REVENUE IS AGAINST THE ORDER OF C IT(A), PANCHKULA DATED 10.1.2011 RELATING TO ASSESSMENT YE AR 2004-05 AGAINST THE ORDER PASSED UNDER SECTION 143(3) OF THE I.T. A CT, 1961. 2. THE ONLY GROUND OF APPEAL RAISED BY THE REVENUE IS AS UNDER:- 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) WAS JUSTIFIED IN HOLDING THAT THE ASSESSEE IS ENTITLED TO DEDUCTION UNDER SECTION 80I C OF THE INCOME TAX ACT, 1961, DESPITE THE FACTUM THAT T HE ASSESSING OFFICER IN THE ASSESSMENT ORDER HAS CLEAR LY HELD THAT THE ASSESSEE IS NOT ENGAGED IN THE PROCES S OF 2 MANUFACTURING AND IS MERELY ENGAGED IN THE SUPPLY O F FINISHED GOODS TO THE GOVERNMENT AGENCIES. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSM ENT WAS REOPENED U/S 147/148 OF THE ACT. THE ASSESSEE HAD CLAIMED DEDUCT ION U/S 80IC OF THE INCOME TAX ACT AND DURING THE ASSESSMENT PROCEEDING S FOR ASSESSMENT YEAR 2006-07, IT WAS OBSERVED THAT NO MANUFACTURIN G / PRODUCTION ACTIVITY WAS TAKING PLACE AT THE PREMISES OF THE ASSESSEE. FOLLOWING THE SAME, THE ASSESSMENT PROCEEDINGS FOR THE YEAR UNDER APPEAL WE RE REOPENED AFTER RECORDING REASONS FOR REOPENING. THE ASSESSING OFF ICER ACCORDINGLY DISALLOWED THE DEDUCTION CLAIMED U/S 80IC OF THE AC T THOUGH SIMILAR CLAIM OF THE ASSESSEE RELATING TO ASSESSMENT YEAR 2006-07 WAS ALLOWED BY THE CIT(A). THE ASSESSING OFFICER WAS OF THE VIEW THAT AS THERE WAS STILL TIME TO FILE AN APPEAL AGAINST THE ORDER RELATING T O ASSESSMENT YEAR 2006- 07, THE SAME WAS NOT TO BE ADOPTED FOR COMPUTING TH E INCOME OF THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION. THE CIT (A) NOTED THE PLEADING OF THE ASSESSEE IN PARA 3(I)(B) AT PAGE 11 OF THE A PPELLATE ORDER. THE CLAIM OF THE ASSESSEE WAS THAT THE DEDUCTION U/S 80IC OF THE ACT RELATING TO ASSESSMENT YEAR 2006-07 HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE BOTH BY THE CIT(A) AND THE TRIBUNAL. THE TRIBUNAL IN I TA NO. 182/CHD/2010 VIDE ORDER DATED 30.8.2010 RELATING TO ASSESSMENT Y EAR 2006-07 HAD HELD THAT THE ASSESSEE WAS CARRYING ON ONE OF THE ACTIVI TY OF MANUFACTURING PROCESS, WHICH ITSELF IS MANUFACTURING AND HENCE TH E ASSESSEE IS ENTITLED TO DEDUCTION U/S 80IC OF THE ACT. THE CIT(A) UPHOL DING THE VALIDITY OF THE RE-ASSESSMENT INITIATED IN THE CASE FURTHER HE LD THAT THE ASSESSING OFFICER IN THE PRESENT YEAR DISALLOWED THE CLAIM OF DEDUCTION U/S 80IC OF THE ACT BY THE ENQUIRIES CONDUCTED DURING OF ASSESS MENT PROCEEDINGS RELATING TO ASSESSMENT YEAR 2006-07. THE CIT(A) FO LLOWING THE ORDER OF 3 THE TRIBUNAL IN ASSESSEES OWN CASE RELATING TO ASS ESSMENT YEAR 2006-07 ALLOWED THE CLAIM OF THE ASSESSEE U/S 80IC OF THE A CT. THE REVENUE IS IN APPEAL AGAINST THE SAID ORDER OF CIT(A). 4. DESPITE SERVICE OF NOTICE, NONE APPEARED ON BEHA LF OF THE ASSESSEE AND WE PROCEED TO DISPOSE OF THE PRESENT APPEAL AS THE ISSUE STANDS COVERED BY THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE. 5. THE ISSUE IN RESPECT OF DEDUCTION ALLOWABLE U/S 80IC OF THE ACT IN ASSESSEES CASE AROSE IN ASSESSMENT YEAR 2006-07 BEFORE THE TRIBUNAL. THE CHANDIGARH BENCH OF THE TRIBUNAL VIDE ITS ORDER DATED 30.8.2010 IN ITA NO. 182/CHD/2010 HELD THE ASSESSEE TO BE ELIGIB LE FOR DEDUCTION U/S 80IC OF THE ACT. THE OBSERVATIONS OF THE TRIBUNAL ARE INCORPORATED AT PAGE 17 OF THE APPELLATE ORDER AND ARE NOT BEING RE PRODUCED FOR THE SAKE OF BREVITY. 6. FOLLOWING THE RATIO LAID DOWN BY THE TRIBUNAL IN ITA NO. 182/CHD/2010 VIDE ORDER DATED 30.10.2010 IN ASSESSE ES OWN CASE RELATING TO ASSESSMENT YEAR 2006-07, WE UPHOLD THE ORDER OF CIT(A) IN ALLOWING DEDUCTION U/S 80IC OF THE ACT FOR THE IMPUGNED ASSE SSMENT YEAR. THE GROUND OF APPEAL RAISED BY THE REVENUE IS THUS DISM ISSED. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 26 TH DAY OF APRIL, 2011. SD/- SD/- (D.K.SRIVASTAVA) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 26 TH APRIL, 2011 RKK 4 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR TRUE COPY BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH