M/s Kamakshi Cold Storage P Ltd, Guntur V. The DCIT Cent Cir Vijayawada, Vijayawada

ITA 276/VIZ/2011

• Counselvise Citation: 27625314 RSA 2011
• Duration Of Justice: 2 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 09-12-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 13-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 263; 2

Judgement Text

ITA NO. 276/VIZAG/2011 KAMAKSHI COLD STORAGE (P) LTD., GUNTUR IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO. 276 /VIZAG/ 20 1 1 ASSESSMENT YEAR : 2007 - 08 KAMAKSHI COLD STORA GE (P) LTD GUNTUR VS. DCIT CENTRAL CIRCLE VIJAYAWADA (APPELLANT) (RESPONDENT) PAN NO.AAFCS 3738M ASSESSEE BY : SHRI G.V.N. HARI, ADVOCATE REVENUE B Y: SHRI K.V.N. CHARYA, CIT(DR) DATE OF HEARING : 09.12.2013 DATE OF PRONOUNCEMENT : 13 .12.2013 ORDER PE R B . RAMAKOTAIAH, : - THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF THE CIT (CENTRAL) HYDERABAD FOR ASSESSMENT YEAR 2007 - 08 U/S 263 OF THE INCOME - TAX ACT. 2. ASSESSEE COMPANY IS RUNNING A COLD STORAGE AND FILED RETURN OF INCOME DECLARIN G AN AMOUNT OF RS.3,81,820/ - . ASSESSEE CLAIMED DEDUCTION U/S 80IA OF THE ACT AT RS.1,35,927/ - , WHICH WAS ALLOWED BY THE A.O. IN THE ASSESSMENT ORDER COMPLETED U/S 143(3) OF THE ACT ON 30.10.2009. THE LD. CIT NOTICING THAT THE PROVISIONS OF SECTION 80IA O F THE ACT HAVE BEEN AMENDED WEF 1.4.2000 AND NOTICING THAT ASSESSEE COMPANY WAS IN RECEIPT OF RENTS ON COLD STORAGE BUT NOT OPERATING COLD STORAGE PLANT , HE LD THAT ASSESSEE WAS NOT ELIGIBLE FOR DEDUCTION U/S 80IA OF THE ACT IN THE ORDER U/S 263 OF THE ACT. ACCORDINGLY, THE ASSESSMENT ORDER WAS SET ASIDE WITH A DIRECTION TO DISALLOW THE CLAIM U/S 80IA OF THE ACT. 3. IT WAS SUBMITTED THAT ASSESSEE WAS CLAIMING THE DEDUCTION IN EARLIER YEARS ALSO AS ASSESSEE STARTED ITS UNIT PRIOR TO 1.4.2000 AND PROVISIONS OF PRE ITA NO.276/ VIZAG/2011 KAMAKSHI COLD STORAGE (P) LTD., GUNTUR 2 AMENDED SECTION 80IA, WHEREIN AS S ESSEE WAS ELIGIBLE FOR DEDUCTION OF OPERATION OF COLD STORAGE PLAN T WAS PERMITTED. THE LD. CIT CONSIDERING AMENDED PROVISIONS HELD THAT ASSESSEE IS NOT ELIGIBLE FOR DEDUCTION AS ASSESSEE IS NOT ENGAGED IN BUSINESS OF PROCESSING, PRESERVATION, PACKING OF FREIGHTS OR VEGETABLES OR INTEGRATED HANDLING AND TRANSPORTATION OF FOOD GRAINS. 4. AFTER CONSIDERING THE RIVAL CONTENTIONS, WE ARE OF THE OPINION THAT THE LD. CIT DID NOT CONSIDER THE COMMENCEMENT OF THE OPERATION BY ASSESSEE UNDERTAKING AS STATED IN THE FORM NO.10CCB . A S S ESSEE HAS STARTED ITS OPERATIONS ON 14. 0 2.2000 AND AS PER PRE AMENDED 80IA PROVISIONS , THE UNDERTAKINGS WHICH ARE OPERAT ING COLD STORAGE PLANTS ARE ELIGIBLE FOR DEDUCTION U/S 80IA. IN VIEW OF THI S ONLY , ASSESSEE SUBMITTED TO THE CIT THAT PRE AMENDED 80IA PROVISIONS ARE APPLICABLE TO IT. LD. CIT WITHOUT NOTICING THE DATE OF COMMENCEMENT REJECTED THE CONTENTION STATING THAT ASSESSEE QUOTED PRE AMENDED PROVISIONS OF 80IA, WHEREAS IT WAS NOT ELIGIBLE FOR DEDUCTION AFTER 1.4.2000 IN VIEW OF THE AMENDMENT. THIS CONTENTION OF THE CIT IS NOT CORRECT ON THE FACTS OF THE CASE AND ASSESSEE HAVING STARTED ITS OPERATION S PRIOR TO 1.4.2000 , THE THEN EXISTING PROVISIONS ALLOWING 80IA ARE APPLICABLE TO ASSESSEE AND ACCORDINGLY, WE HAVE NO HESITATION IN HOLDING THAT THE ORDER OF THE AO ALLOWING THE CLAIM IN THE ORDER U/S 143(3) IS NOT ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE REVENUE. CONSEQUENTLY, CIT HAS NO JURISDICTION TO SET ASIDE THE ORDER U/S 263 OF THE ACT. THE GROUNDS OF ASSESSEE ARE ALLOWED AND THE ORDER OF THE CIT IS CANCELLED. 5. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 13 TH DEC13 SD/ - SD/ - ( SAKTIJIT DEY ) ( B. RAMAKOTAIAH ) JUDICI AL MEMBER ACCOUNTANT MEMBER VG/SPS VISAKHAPATNAM, DATED 13 TH DECEMBER , 20 1 3 ITA NO.276/ VIZAG/2011 KAMAKSHI COLD STORAGE (P) LTD., GUNTUR 3 COPY TO 1 KAMAKSHI COLD STORAGE (P) LTD., C/O P. NAGESWARA RAO & CO., AUDITORS, ANJUMAN BUILDING, LALAPET, GUNTUR 2 DCIT CENTRAL CIRCLE, VIJAYAWADA 3 THE CI T (CENTR AL) , HYDERABAD 4 THE CIT (A) , HYDERABAD 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM