ACIT Corporate, Cochin V. M/s.Plant LIpids P. Ltd, Ernakulam

ITA 32/COCH/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4275 (ITAT-COCHIN)
• Duration Of Justice: 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 21-10-2020
• Assessment Year: 2012-2013
• Appeal Filed On: 13-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SAJJIVE
• Keywords: Tax effect
• Section: 80IA; 268A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI CHANDRA POOJARI, AM & SHRI GEORGE MATHAN, JM ITA NO.32COCH/2020 : ASST.YEAR 2012-13 THE ASST.COMMISSIONER OF INCOME-TAX, CORP.CIRCLE 2(1) KOCHI. VS. M/S. PLANTS LIPIDS PVT. LTD., KADAYIRUPPU, KOLENCHERRY, ERNAKULAM-683 101. PAN : AABCP 6061C]. ( REVENUE - APPELLANT) ( ASSESSEE - RESPONDENT) REVENUE BY : SHRI B. SAJJIVE, SR. DR ASSESSEE BY: SHRI THOMSON THOMAS, CA DATE OF HEARING : 21/10/2020 DATE OF PRONOUNCEMENT : 21/10/2020 O R D E R PER CHANDRA POOJARI, AM THIS APPEAL AT THE INSTANCE OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)S-I, KOCHI DATED 03/10/2019. THE RELEVANT ASSESSMENT YEAR IS 2012-13. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THE ORDERS OF THE CIT(A) ARE OPPOSED TO THE FACTS AND CIRCUMSTANCES OF THE CASE. 2. WHETHER ON FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) IS JUSTIFIED IN HOLDING THAT EACH OF THE WINDMILLS CONSTITUTED A SEPARATE UNDERTAKING FOR THE PURPOSE OF DEDUCTION U/S.80IA. ITA NO.32/COCH/2020 . 2 3. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) IS JUSTIFIED IN HOLDING THAT THE ASSESSEE IS ELIGIBLE FOR DEDUCTION U/S. 80IA OF THE IT ACT TO EACH OF THE WINDMILL SEPARATELY AS THE ONLY BUSINESS OF THE ASSESSEE WITHOUT APPRECIATING THE FACT THAT THE DEDUCTION PROVIDED U/S. 80IA OF THE ACT HAS TO BE GIVEN TO BUSINESS AS A WHOLE. 4. IT IS PRAYED THAT THE ORDERS OF THE CIT(A) BE REVERSED AND THAT OF THE ASSESSING OFFICER RESTORED. 3. AT THE VERY OUTSET, IT IS OBSERVED THAT THE TAX EFFECT IN THE APPEAL FILED BY THE REVENUE IS LESS THAN RS.50 LAKH, AND THEREFORE, THE CIRCULAR NO. 17/2019 DATED 8 TH AUGUST, 2019, ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES (CBDT) IN EXERCISE OF ITS POWER VESTED UNDER SEC. 268A OF THE I.T. ACT COMES INTO PLAY, WHEREIN, THE MONETARY LIMIT FOR FILING THE APPEAL(S) BY THE REVENUE BEFORE THE ITAT AND VARIOUS HIGH COURTS AS WELL AS APEX COURT ARE REVISED WITH AN OBJECT OF REDUCING THE TAX LITIGATION. VIDE PARA 2 OF THE SAID CIRCULAR (SUPRA), IT IS STATED THAT IN CASES WHERE THE TAX EFFECT IN THE APPEAL TO BE FILED BEFORE THE APPELLATE TRIBUNAL DOES NOT EXCEED RS. 50 LAKH, APPEAL SHOULD NOT BE FILED. THUS, TAKING A NOTE OF CBDT CIRCULAR NO. 17/2019 DATED 8 TH AUGUST, 2019 AND CONSIDERING THE FACT THAT THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN RS.50 LAKH, THE PRESENT APPEAL DESERVES TO BE DISMISSED, AS NOT MAINTAINABLE. 3.1. FURTHER, ON PERUSAL OF THE GROUNDS, WE FIND THAT THERE IS NO GROUND TO SHOW THAT IT FALLS UNDER ANY EXCEPTIONS PROVIDED IN THE CIRCULAR. AT THE SAME TIME, WE ALSO MAKE IT CLEAR THAT ITA NO.32/COCH/2020 . 3 IF THE APPEAL FALLS IN ANY OF THE EXCEPTIONS REFERRED TO IN THE ABOVE SAID CBDT CIRCULAR, THE REVENUE IS AT LIBERTY TO MOVE AN APPLICATION FOR RECALLING THE ORDER, IF SO, ADVISED. 3.2 ACCORDINGLY IN THE LIGHT OF CBDT CIRCULAR NO.17/2019 DATED 08 TH AUGUST, 2019, THE APPEAL STANDS DISMISSED. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON THIS 21 ST DAY OF OCTOBER, 2020 . SD/- (GEORGE MATHAN) SD/- (CHANDRA POOJARI) JUDICIAL MEMBER ACCOUNTANT MEMBER COCHIN ; DATED : 21 ST OCTOBER,2020. GJ COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT. REGISTRAR) ITAT, COCHIN 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - I, KOCHI. 4. THE CIT, KOCHI. 5. DR, ITAT, COCHIN 6 . GUARD FILE. ITA NO.32/COCH/2020 . 4