Oceanic Topicsl Fruits Pvt Ltd., CHENNAI V. DCIT, CHENNAI

ITA 3225/CHNY/2016

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4125 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 12-06-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 24-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S SRIDHAR
• Keywords: Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, C HENNAI . . . , , ! ' BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER /. I.T.A. NO. 3225/CHNY/2016 / ASSESSMENT YEAR : 2012-136 M/S. OCEANIC TROPICAL FRUITS PVT. LTD., NO.15, ZACKARIA COLONY, 4 TH STREET, CHOOLALMEDU, CHENNAI 600 094. [PAN: AAACO 9556E] VS. DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 5(1), CHENNAI 600 034. ( / APPELLANT) ( #$%& /RESPONDENT ) %& ' ( / APPELLANT BY : SHRI. S. SRIDHAR, ADVOCATE #$%& ' ( / RESPONDENT BY : SHRI. AR V SREENIVASAN, JCIT * '+! /DATE OF HEARING : 20.11.2019 ,-. '+! /DATE OF PRONOUNCEMENT : 18.02.2020 / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER: THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-3, CHENNAI IN ITA NO. 129/2015-16/CIT(A)-3 DATED 26.09.2016 FOR ASSESSMEN T YEAR 2012-13. 2. M/S. OCEANIC TROPICAL FRUITS PVT. LTD., THE ASSE SSEE IS MANUFACTURER AND EXPORT OF ASEPTIC FRUITS PULP, PUR EE, CONCENTRATES. :-2-: ITA NO.3225/CHNY/2016 WHILE MAKING ASSESSMENT FOR ASSESSMENT YEAR 2012-13 , THE ASSESSEE CLAIMED DEDUCTION U/S. 80IB(11A) ON CERTAIN RECEIPT S VIZ., EXCHANGE FLUCTUATION, INTEREST RECEIVED, OTHER INCOME, SALE OF LICENCE ETC. THE AO REQUIRED THE ASSESSEE TO SHOW CAUSE WHY THE OTHER INCOME SHOULD NOT BE EXCLUDED FROM THE PROFITS OF THE BUSINESS FOR CO MPUTING THE DEDUCTION U/S. 80IB(11A). SINCE, THE ASSESSEE HAS NOT FURNISHED ANY REPLY, HE COMPLETED THE ASSESSMENT EXCLUDING THE O THER INCOME FOR THE PURPOSE OF COMPUTATION OF DEDUCTION U/S. 80IB(1 1A). AGGRIEVED, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A). TH E LD CIT(A) DISMISSED THE APPEAL. AGGRIEVED AGAINST THAT ORDE R THE ASSESSEE FILED THIS APPEAL. 3. THE LD. AR SUBMITTED THAT THE ASSESSEE CLAIMED D EDUCTION TO THE TUNE OF RS. 5,70,37,903/- U/S. 80IB(11A) IN RESPECT OF CERTAIN INCOME DISCLOSED AS OTHER INCOME IN THE AUDITED P&L ACCO UNT. THE LD. AO DISALLOWED THE ABOVE INCOME FOR THE PURPOSE OF DEDU CTION U/S. 80IB(11A). THE INTEREST INCOME IS VERY MUCH PART O F BUSINESS AND THEREFORE INTEREST INCURRED ON THE INTEREST AND OTH ER INCOME ARE TO BE RECKONED FOR THE PURPOSE OF DEDUCTION U/S. 80IB(11A ). HOWEVER, NEITHER THE ASSESSING OFFICER NOR THE LD. CIT(A) CO NSIDERED THE CLAIM PROPERLY AND HENCE HE PLEADED TO ALLOW THE APPEAL. PER CONTRA, THE LD. DR SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES ST ATING THAT THE :-3-: ITA NO.3225/CHNY/2016 ASSESSEE CLAIMED DEDUCTION, BUT WHEN THE PARTICULAR S WERE CALLED FOR IN SUPPORT OF THE DEDUCTION CLAIMED, THE ASSESSEE HAS NOT FURNISHED THE REQUIRED MATERIAL. THEREFORE, THE DISALLOWANCE MAD E BY THE LOWER AUTHORITIES ARE JUSTIFIED. THEREFORE, THE LD. DR P LEADED THAT THE ASSESSEES APPEAL MAY BE DISMISSED. 4. WE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH THE RELEVANT MATERIAL. IT IS CLEAR FROM THE ABOVE THAT THE ASSE SSEE HAS CLAIMED DEDUCTION U/S. 80IB(11A). WHEN THE ASSESSING OFFIC ER CALLED FOR THE DETAILS TO ASCERTAIN THE NATURE OF RECEIPTS, THE AS SESSEE HAS NOT FURNISHED ANY PARTICULARS. THE COMMISSIONER MERELY RECORDED A FINDING THAT ON PERUSAL OF ASSESSMENT ORDER, IT IS NOTICED THAT THE ASSESSEE HAS FAILED TO PRODUCE REQUIRED DETAILS BEFORE THE AO TO CONFIRM THE ORDER OF THE LD. AO. THEREFORE, WE ARE OF THE VIEW THAT THE ASSESSEES CLAIM HAS NOT BEEN PROPERLY EXAMINED BY THE LOWER AUTHORI TIES FOR THE REASON THAT THE ASSESSEE HAS NOT FURNISHED THE REQUIRED MA TERIAL BEFORE THEM. IN THE FACTS AND CIRCUMSTANCES, IN THE INTERESTS OF JUSTICE, WE SET ASIDE THE ORDERS OF THE LOWER AUTHORITIES AND REMIT THE I SSUE BACK TO THE AO FOR A FRESH EXAMINATION. THE ASSESSEE SHALL LAY RELEVANT MATERIALS IN SUPPORT OF ITS CONTENTION BEFORE THE AO AND COMPLY WITH THE REQUIREMENTS OF THE AO IN ACCORDANCE WITH LAW. THE AO IS FREE TO CONDUCT APPROPRIATE ENQUIRY AS DEEMED FIT, BUT HE SHALL FURNISH :-4-: ITA NO.3225/CHNY/2016 ADEQUATE OPPORTUNITY TO THE ASSESSSEE ON THE MATER IAL ETC TO BE USED AGAINST IT AND DECIDE THE MATTER IN ACCORDANCE WIT H LAW. 5. IN THE RESULT, THE ASSESSEES APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON TUESDAY, 18 TH FEBRUARY, 2020 AT CHENNAI. SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER SD/- ( ! ) (S. JAYARAMAN) ' /ACCOUNTANT MEMBER /CHENNAI, / /DATED: 18 TH FEBRUARY, 2020 JPV '#+0121.+ /COPY TO: 1. %& / APPELLANT 2. #$%& /RESPONDENT 3. * 3+ ) ( /CIT(A) 4. * 3+ /CIT 5. 14#+ /DR 6. 567 /GF