Enviro Technology Limited, Ankleshwar V. The Dy.CIT.,Bharuch Circle, Bharuch

ITA 2653/AHD/2013

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6289 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 24-03-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 13-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANTONY PARIATH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH (BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER) ITA. NO: 2653/AHD/2013 (ASSESSMENT YEAR: 2008-09) ENVIRO TECHNOLOGY LIMITED 2413/14, G.I.D.C., ANKLESHWAR-393002 V/S DY. COMMISSIONER OF INCOME-TAX, BHARUCH CIRCLE, BHARUCH (APPELLANT) (RESPONDENT) PAN: AAACE4126G APPELLANT BY : SHRI PARIN SHAH & BANDISH SOPARKA R, RESPONDENT BY : SHRI ANTONY PARIATH, SR. D.R . ( )/ ORDER DATE OF HEARING : 24 -03-201 7 DATE OF PRONOUNCEMENT : 03 -04-2017 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-II, BARODA DATED 21.06.2013 PERTAINING TO A.Y. 2008-09. ITA NO. 2653 /AHD/2013 . A.Y. 2008-0 9 2 2. THE SUM AND SUBSTANCE OF THE GRIEVANCE OF THE ASSES SEE IS THAT THE LD. CIT(A) ERRED IN NOT DIRECTING THE A.O. TO ALLOW NET TING OFF OF INTEREST FOR COMPUTING DEDUCTION U/S. 80IA OF THE ACT. 3. THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF TREATING INDUSTRIAL EFFLUENT OF SMALL SCALE INDUSTRIES OF ANKLESHWAR IN DUSTRIAL ESTATE. THE ASSESSEE HAS CLAIMED DEDUCTION U/S. 80IA OF THE ACT . ON PERUSAL OF THE COMPUTATION OF TOTAL INCOME , THE A.O. NOTICED THAT THE ASSESSEE HAS SHOWN OTHER INCOME AS FOLLOWS:- INTEREST INCOME ON LOAN RS. 69,12,494/- LESS: EXPENSE INCURRED TO EARN OTHER INCOME RS. 6,9 1,249/- 4. ON FURTHER VERIFICATION, THE A.O. NOTICED THAT THE INTEREST INCOME OF THE ASSESSEE IS AS UNDER:- INTEREST ON FIXED DEPOSITS RS. 12,60,231/- INTEREST ON LOAN RS. 69,12,494/- INTEREST ON OTHER DEPOSITS RS. 33,176 INTEREST ON DELAYED PAYMENTS RS. 10,25,225/- TOTAL RS.92,31,126/- 5. THE A.O. FOUND THAT WHILE CALCULATION OF THE ELIGIB LE PROFIT FOR DEDUCTION U/S. 80IA OF THE ACT, THE ASSESSEE HAS REDUCED RS. 62,21,245/- AS AGAINST INTEREST INCOME OF RS. 92,31,126/-. THE A.O. ACCOR DINGLY TOOK THE INTEREST INCOME OF RS. 92,31,126/- AS ELIGIBLE FOR DEDUCTION U/S. 80IA OF THE ACT AND RECOMPUTED THE ELIGIBLE PROFIT. ITA NO. 2653 /AHD/2013 . A.Y. 2008-0 9 3 6. ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) A ND STRONGLY CONTENDED THAT THE INTEREST INCOME SHOULD HAVE BEEN NETTED OF F THAT IS THE INTEREST EARNED SHOULD HAVE BEEN REDUCED BY THE INTEREST PAI D. THIS CLAIM OF THE ASSESSEE DID NOT FIND ANY FAVOUR WITH THE FIRST APP ELLATE AUTHORITY WHO CONFIRMED THE ASSESSMENT ORDER. 7. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE REITERA TED WHAT HAS BEEN STATED BEFORE THE LOWER AUTHORITIES. IT IS THE SAY OF THE LD. COUNSEL THAT THIS ISSUE IS NOW SETTLED IN FAVOUR OF THE ASSESSEE AND AGAINST T HE REVENUE IN THE CASE OF NIRMA LTD. 367 ITR 12. 8. PER CONTRA, THE LD. D.R. STRONGLY SUPPORTED THE FIN DINGS OF THE REVENUE AUTHORITIES. 9. AFTER GIVING A THOUGHTFUL CONSIDERATION TO THE ORDE RS OF THE AUTHORITIES BELOW QUA THE ISSUE, IN OUR CONSIDERED OPINION, THI S ISSUE IS NO MORE RES INTEGRA AS IT HAS BEEN DECIDED BY THE HONBLE SUPRE ME COURT IN THE CASE OF ACG ASSOCIATED CAPSULES PVT. LTD. 343 ITR 89 IN FAV OR OF THE ASSESSEE AND AGAINST THE REVENUE. THE HONBLE JURISDICTIONAL HIG H COURT IN THE CASE OF NIRMA LTD. (SUPRA) HAS FOLLOWED THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF ACG ASSOCIATED CAPSULES PVT. LTD. (S URPA). AS NO DISTINGUISHING DECISION HAS BEEN BROUGHT BY THE LD. D.R. IN FAVOUR OF THE REVENUE, RESPECTFULLY FOLLOWING THE DECISION OF THE HONBLE SUPREME COURT (SUPRA) AND THE HONBLE JURISDICTIONAL HIGH COURT ( SUPRA), WE SET ASIDE THE FINDINGS OF THE LD. CIT(A) AND DIRECT THE A.O. TO C ONSIDER THE NET INTEREST ITA NO. 2653 /AHD/2013 . A.Y. 2008-0 9 4 INCOME FOR COMPUTING THE ELIGIBLE PROFIT FOR THE DE DUCTION U/S. 80IA OF THE ACT. 10. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 03 - 04- 20 17 SD/- SD/- (RAJPAL YADAV) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY ACCOUNTANT MEMBER AHMEDABAD: DATED 03 /04/2017 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