Dy. Commissioner of Income Tax , Circle-2(1), Hyderabad V. Kakatiya Cements Sugar & Industries Limited , Hyderabad

ITA 268/Hyd/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9827 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-A
• Next Hearing Date: 31-05-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 01-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N ESTHER
• Section: 143(3); 80IA; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L . P . SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 268 /HYD/201 9 (ASSESSMENT YEAR : 20 14 - 15 ) DY. COMMISSIONER OF INCOME TAX, CIRCLE 2(1), HYDERABAD. ..APPELLANT. VS. M/S. KAKATIYA CEMENT SUGAR & INDUSTRIES, HYDERABAD. ..RESPONDENT. PAN AABCK 1868J APPELLANT BY : S MT. N. ESTHER (D.R.) RESPONDENT BY : NONE. DATE OF HEARING : 31.05. 2021. DATE OF PRONOUNCEMENT : 23 .0 7 .2021. O R D E R PER SHRI S.S. GODARA, J.M. : THIS REVENUE S APPEAL FOR ASST. YEAR 2014 - 15 ARISES FROM THE COMMISSIONER OF INCOME TAX (APPEALS) - 2, HYDERABAD S ORDER DT. 18.12.2018 PASSED IN CASE NO. 10292/2017 - 18/CIT(A) - 2 IN PROCEEDINGS UNDER SECTION 143(3) OF INCOME TAX ACT, 1961 (THE ACT). 2 ITA NO. 268/HYD/2019 CASE CALLED TWICE. NONE APPEARED ON BEHALF OF THE ASSESSEE . I T IS ACCORDINGLY P ROCEEDED EXPARTE . 2. THE REVENUE HAS PROPOSED THE FOLLOWING SUBSTANTIVE GROUNDS IN THIS APPEAL : 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WHETHER THE CIT(A) IS CORRECT IN LAW IN HOLDING THAT COGENERATION POWER PLANT IS AN INDEPENDENT UNDERTAKING ELIGIBLE FOR DEDUCTION U/S.80IA OF THE INCOME TAX ACT,1961 WHEN THE OPERATIONS ARE INTEGRATED WITH THE EXISTING SUGAR PLANT ? 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WHETHER THE CIT(A) IS CORRECT IN LAW IN HOLDING THAT GENERATION OF LP STEAM WHICH IS A WASTE PRODUCT WITH NO VALUE IS EQUAL TO GENERATION OF POWER WHICH IS ELIGIBLE FOR DEDUCTION U/S. 80IA OF THE INCOME TAX ACT ? 3. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WHETHER THE CIT(A) IS CORRECT IN LAW IN HOLDIN G THAT LP STEAM HAS DEFINITE VALUE WHERE AS SUCH LP STEAM HAS NO MARKET VALUE AND I FACT A MARKETABLE COMMODITY ? . 3. WE NOTICE WITH THE ABLE ASSISTANCE OF LEARNED DEPARTMENT REPRESENTATIVE THAT THE CIT(A) DETAILED DISCUSSION HOLDING THE ASSESSEE A S ELIGIBLE FOR 80IA DEDUCTION READS AS UNDER : 3 ITA NO. 268/HYD/2019 4 ITA NO. 268/HYD/2019 5 ITA NO. 268/HYD/2019 6 ITA NO. 268/HYD/2019 7 ITA NO. 268/HYD/2019 8 ITA NO. 268/HYD/2019 9 ITA NO. 268/HYD/2019 4. T HIS TRIBUNALS CO - ORDINATE BENCH ORDER S IN ASSESSMENT YEAR S 2012 - 13 AND 2016 - 17 INVOLVING REVENUES APPEAL S IN ITA 1283/HYD/2017 AND 1598/HYD/2019 DT.9.4.2021 HA S ALREADY UPHELD THE CIT(A)S IDENTICAL ACTION BY ADOPTING JUDICIAL CONSISTENCY THEREBY HOLDING THE ASSESSEES POWER PLANT IS ELIGIBLE FOR 80IA DEDUCTION. THE REVENUE IS FAIR ENOUGH IN NOT PIN POINTING ANY EX CEPTION EXCEPT MENTIONING TRIBUNAL'S ABOVE CITE D ORDER (SUPRA) IN EARLIER ASSESSMENT YEARS. WE THUS SEE NO REASON TO ADOPT A DIFFERENT APPROACH IN THE IMPUGNED ASSESSMENT YEAR. THE CIT(A)S LOWER APPELLATE FINDING S STAND AFFIRMED THEREFORE. 10 ITA NO. 268/HYD/2019 5. THIS R EVENUES APPEAL IS DISMISSED. ORDER PRONOUNCE D IN THE OPEN COURT ON 23RD JU LY , 2021. SD / - SD/ - (L .P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 23 .0 7 .2021. * REDDY GP COPY TO : 1. M/S. KAKATIYA CEMENT SUGAR & INDUSTRIES LIMITED, 1 - 10 - 140/1,GURUKRUPA,ASHOKNAGAR, HYDERABAD - 500 020 2. DCIT, CIRCLE 2(1), HYDERABAD. 3. PR. C I T - 2 , HYDERABAD. 4. CIT(APPEALS) - 2, HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.