ITO, New Delhi V. M/s. BE Office Automation Products Pvt. Ltd., New Delhi

ITA 3141/DEL/2012

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 7343 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 07-10-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 19-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK GARG; SA L FAN E T SHERWANI
• Assessee Lawyers: Y KAKKAR
• Keywords: Additional evidence
• Section: 143(3); 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : A : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER AND SHRI GEORGE GEORGE K., JUDICIAL MEMBER ITA NO. 3141 /DEL /2012 ASSESSMENT YEAR : 200 6 - 20 07 I.T.O., WARD 2(4), VS. M/S BE OFFICE AUTOMATION PRODUCTS PVT. LTD. R.NO.381, 3 RD FLOOR, CENTRAL 1, MINI MARKET, NEAR MOTI BAGH, REVENUE BUILDING, I.P. ESTATE GURUDWARA, NANAK PURA, DELHI - 110002 NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI Y. KAKKAR, D.R. D EPARTMENT BY: SHRI ASHOK GARG , AND MS. SA L FAN E T SHERWANI, ADVOCATES ORDER PER SHRI GEORGE GEORGE K, JM : 1. THIS APPEAL AT THE INSTANCE OF THE DEPARTMENT IS DIRECTED AGAINST THE CIT(A) S ORDER DATED 0 2 .0 4 .2012. THE RELEVANT ASSESSMENT YEAR IS 200 6 - 07 . 2. THE SOLITARY ISSUE THAT ARISES FOR OUR CONSIDERATION IS WHETHER THE CIT(A) IS JUSTIFIED IN GRANTING THE DEDUCTION U/S 80IB OF THE I.T. ACT, 1961 AMOUNTING TO RS.43,95,311/ - . 3. BRIEF FACTS OF THE CASE ARE AS FOLLOWS. THE ASSESSEE HAD FILED RETURN ON 30. 11.2006 DECLARING INCOME OF RS.7,44,430/ - AFTER CLAIMING DEDUCTION U/S 80IB OF THE ACT AMOUNTING TO ITA NO. 3141 /DEL /2012 ASSESSMENT YEAR : 200 6 - 20 07 2 RS.43,95,311/ - . THE ASSESSMENT WAS COMPLETED BY ORDER DATED 05.12.2008 U/S 143(3) DENYING THE DEDUCTION CLAIMED U/S 80IB OF THE ACT. ACCORDING TO THE A.O., THE ASSESSEE DID NOT CARRY ON ANY MANUFACTURING ACTIVITY ELIGIBLE FOR DEDUCTION U/S 80IB OF THE ACT. 4. THE ASSESSEE BEING AGGRIEVED , CARRIED THE ISSUE IN APPEAL BEFORE THE CIT(A). IN THE COURSE OF APPELLATE PROCEEDINGS, THE ASSESSEE HAD FILED AN APPLICAT ION UNDER RULE 46A REQUESTING FOR ADMISSION OF ADDITIONAL EVIDENCE , NAMELY , COPY OF CERTIFICATE FROM THE ASSISTANT EXECUTIVE ENGINEER, ELECTRICAL SUB DIVISION HPSED BAROTIWALA REGARDING PAYMENTS MADE ON ACCOUNT OF ELECTRICITY EXPENSES FOR THE PERIOD FROM S EPTEMBER, 2005 TO AUGUST, 2006 AND COPIES OF ELECTRICITY BILLS FOR THE PREVIOUS YEAR RELEVANT TO THE CURRENT ASSESSMENT YEAR. THE CIT(A) ON RECEIPT OF THE ASSESSEE PETITION FOR ADMISSION OF ADDITIONAL EVIDENCE CALLED FOR REMAND REPORT FROM THE A.O. BY HIS OFFICE LETTER DATED 25.02.2010. THE A.O. SUBMITTED DETAILED REMAND REPORT BY LETTERS DATED 13.06.2011 AND 17.06.2011. THE CIT(A) AFTER CONSIDERING SUBMISSION OF THE ASSESSEE , THE REMAND REPORT OF THE A.O. CONCLUDED THAT ASSESSEE WAS ENTITLED TO DEDUCTION U /S 80IB OF THE ACT. 5. THE REVENUE BEING AGGRIEVED IS IN APPEAL BEFORE US. THE LD. D.R. STRONGLY SUPPORTED THE ORDER OF THE ASSESSING OFFICER . PER CONTRA , THE LD. A.R. REITERATED THE SUBMISSION MADE BEFORE THE INCOME TAX AUTHORITY . H E ALSO FILED THE PAPER BOOK COMPRISING OF 228 PAGES. ITA NO. 3141 /DEL /2012 ASSESSMENT YEAR : 200 6 - 20 07 3 6. WE HAVE HEARD RIVAL SUBMISSION AND PERUSED THE MATERIAL ON RECORD. THE CIT(A) HAS SOUGHT FOR A REMAND REPORT FROM THE ASSESSING OFFICER WITH REFERENCE TO THE CLAIM OF DEDUCTION U/S 80IB OF THE ACT. THE ASSESSING OFFICER SUBMITTED THE REPORT BY A LETTER DATED 17.06.2011. THE RELEVANT PORTION OF THE A.O REPORT READS AS FOLLOWS: - KINDLY REFER TO YOUR OFFICE LETTER NO.CIT(A): V/2010 - 11/203 DATED 08.11.2010 WHEREIN YOU HAVE REQUESTED THE AO TO PROVIDE ANOTHER CHANCE TO EXPLA IN THE ADDITIONAL EVIDENCES FILED AT FIRST APPELLATE STAGE AND GO THROUGH THE BOOKS OF ACCOUNTS. 1. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURE/ACTIVITY AS ASSEMBLY OF PLAIN COPIER. THE PART AND COMPONENT OF THE MACHINES ARE IMPORTED FROM DIFFER ENT COUNTRIES. 2................. 3................. 4................. 5................. 6................. 7................. 8................. ...........IN VIEW OF THE ABOVE, IT SEEMS TO BE GENUINE THAT THE ASSESSEE IS CARRYING HE MANUFACTURING ACTIV ITY AT BADDI (HIMACHAL PRADESH). THE BOOKS OF ACCOUNTS PRODUCED BY THE ASSESSEE, COMPANY WERE EXAMINED AND THE DETAILS SUBMITTED U/RULE 46A OF I.T. RULES ARE REFLECTED IN THE BOOKS. 6 .1 IN VIEW OF ABOVE REMAND REPORT SUBMITTED BY THE A.O., THE CIT(A) HA D CONCLUDED THAT THE ASSESSEE IS ENTITLED TO DEDUCTION U/S 80IB OF THE ACT. WHEN THE ASSESSING OFFICER HAD CATEGORICALLY STATED IN THE REMAND REPORT THAT THE ASSESSEE IS ENGAGED IN MANUFACTURE ACTIVITY AND IN THE ABSENCE OF EVIDENCE/DOCUMENT S TO THE CONTRA RY, WE SEE NO REASON TO INTERFERE WITH THE ORDER OF THE CIT(A). MOREOVER, WE FIND THAT THE ASSESSEE WAS ALLOWED THE BENEFIT OF DEDUCTION FROM A.YS. 1998 - 99 TO 2005 - 2006 . IT IS TO BE FURTHER MENTIONED THAT IN ITA NO. 3141 /DEL /2012 ASSESSMENT YEAR : 200 6 - 20 07 4 RESPECT OF A.Y. 2001 - 2002 , THE ASSESSMENT WAS CO MPLETED U/S 143(3) OF THE ACT. FOR THE AFORESAID REASONS, WE UPHOLD THE ORDER OF THE CIT(A) IS CORRECT AND IN ACCORDANCE WITH LAW AND NO INFERENCE IS CALLED FOR. 7 . IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. TH E DECISION WAS PRONOUNCED IN TH E OPEN COURT ON 9 TH OCTO BER, 201 4 . SD/ - SD/ - ( R.S. SYAL ) (GEORGE GEORGE K.) A CCOUNTANT MEMBER J UDICIAL MEMBER DATED: 9 TH OCTOBER , 201 4 . AKS/ - COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR DY. REGISTRAR, ITAT, NEW DELHI