DCIT, Jaipur V. SHAKUN AYURVED PVT. LTD., Jaipur

ITA 346/JPR/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99518 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 02-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: TANUJ AGARWAL C A DHK
• Section: 80IB; 80G; 54; 154

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VH-VKJ-EHUK] YS[KK LNL; ,OA JH YFYR DQEKJ] U;KF; D LNL; DS LE{K BEFORE: SHRI T.R.MEENA, AM & SHRI LALIET KUMAR, JM VK;DJ VIHY LA-@ ITA NOS. 346/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2010-11 . DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-7, JAIPUR. CUKE VS. M/S. SHAKUN AYURVED PVT. LTD., G-1-763-764, TONK ROAD, SITAPURA INDL. AREA (EXT.), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO. AAGCS 9055 E VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT VK;DJ VIHY LA /C.O. NO. 15/JP/2014 (ARISING OUT OF ITA NO. 346/JP/2014) FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2010-11 . M/S. SHAKUN AYURVED PVT. LTD., G-1-763-764, TONK ROAD, SITAPURA INDL. AREA (EXT.), JAIPUR. CUKE VS. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-7, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO. AAGCS 9055 E VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI KAILASH MANGAL (JCIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY S BY : SHRI TANUJ AGARWAL (C.A.) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 28.10.2015. ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 27/11/2015. 2 ITA NO. 346/JP/2014 A.Y. 2010-11 DCIT VS. M/S. SHAKUN AYURVED PVT. LTD. VKNS'K@ ORDER PER SHRI LALIET KUMAR, J.M. THE APPEAL IS FILED BY THE REVENUE AND THE CROSS O BJECTION IS FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT (A)-III, JAIP UR DATED 11.02.2014. THE SOLITARY GROUND RAISED IN THE APPEAL IS AS UNDER :- ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT (A) HAS ERRED IN ALLOWING DEDUCTION U/S 80IB TO THE ASSESSE E DESPITE THE FACT THAT THE SAME WAS NOT CLAIMED IN THE RETURN OF INCOME AN D WAS NOT ADMISSIBLE IN VIEW OF PROVISIONS OF SECTION 80A(5) OF THE I.T. ACT, 1961. THE GROUND RAISED BY THE ASSESSEE IN THE CROSS OBJE CTION IS AS UNDER : THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT (APPEALS) ERRED IN DISALLOWING DEDUCTIO N OF RS. 12,778/- UNDER SECTION 80G OF THE INCOME-TAX ACT, 1961, DESPITE TH E FACT THAT THE SAME HAD ALREADY BEEN ALLOWED BY ASSTT. COMMISSIONER, IN COME TAX (CPC), BANGALORE UNDER SECTION 154 OF THE INCOME-TAX ACT, 1961. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HA S FILED ITS RETURN OF INCOME ON 27.09.2010 AFTER CLAIMING DEDUCTION UNDER SECTION 8 0IB AMOUNTING TO RS. 10,49,579/- AND DEDUCTION UNDER SECTION 80G FOR RS. 12,778/-. INTIMATION WAS SENT TO THE CENTRAL PROCESSING CENTRE (CPC), BANGALORE UNDER SECTION 14 3(1). HOWEVER, IN THE SAID INTIMATION THE CPC HAS NOT CONSIDERED THE DEDUCTION CLAIMED BY THE ASSESSEE UNDER SECTION 80IB UNDER CHAPTER VI-A OF THE IT ACT. FEE LING AGGRIEVED BY THE INTIMATION, AN APPEAL HAS BEEN FILED BY THE ASSESSEE BEFORE LD. CI T (A) AS WELL AS APPLICATION FOR RECTIFICATION WAS ALSO FILED WITH THE CPC UNDER SEC TION 154 OF THE IT ACT. BEFORE THE OUTCOME OF THE RECTIFICATION APPLICATION WAS NOTIFI ED TO THE ASSESSEE, THE LD. CIT (A) 3 ITA NO. 346/JP/2014 A.Y. 2010-11 DCIT VS. M/S. SHAKUN AYURVED PVT. LTD. DECIDED THE APPEAL AND HAS ALLOWED THE 80IB EXEMPTI ON. THE PARA 4.2 OF THE ORDER OF THE LD. CIT (A) IS REPRODUCED HEREIN BELOW :- 4.2. THE WRITTEN SUBMISSION OF THE APPELLANT WAS F ORWARDED TO THE A.O. AND THE A.O. WAS REQUIRED TO FILE FACTUAL REPORT ON THE SAME. THE A.O. HAS SUBMITTED A REPORT DATED 19.11.2 013 STATING THAT AS PER THE AUDIT REPORT THE COMPANY WAS ELIGIB LE FOR DEDUCTION U/S 80IB AMOUNTING TO RS. 1049579/- AND THAT THIS M ISTAKE BEING APPARENT FROM THE RECORD CAN BE RECTIFIED U/S 154 O F IT ACT. THE A.O. FURTHER STATED THAT AS THE RETURN IS NOT AVAIL ABLE WITH THIS OFFICE AND LYING WITH CPC THEREFORE RECTIFICATION O RDER CAN BE PASSED ONLY WHEN THE RETURN IS TRANSFERRED TO THE A .O. AGAINST THAT ORDER, THE REVENUE IS IN APPEAL BEFORE US. 3. IN THE MEANTIME THE ORDER ON RECTIFICATION APPLI CATION WAS ALSO PASSED BY THE CPC AND THE DEDUCTION UNDER CHAPTER VI-A, AS CLAIME D BY THE ASSESSEE IN THE RETURN OF INCOME WAS ALSO GRANTED TO THE ASSESSEE. 4. WE FAIL TO APPRECIATE WHY THE PRESENT APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER PASSED BY THE LD. CIT (A) WHEN THE EFFECT OF SECTION 80IB HAD ALREADY BEEN GRANTED UNDER THE RECTIFICATION APPLICATION TO THE ASSESSEE BY THE CPC. WE DO NOT FIND ANY REASON TO ENTERTAIN THE PRESENT APPEAL FILED BY THE REVENUE. THEREFORE, THE SAME IS HEREBY DISMISSED. 5. THE CROSS OBJECTION OF THE ASSESSEE IS FILED AGA INST DISALLOWANCE OF DEDUCTION OF RS. 12,778/- UNDER SECTION 80G OF THE IT ACT. THE RETURN OF INCOME WAS FILED CLAIMING 4 ITA NO. 346/JP/2014 A.Y. 2010-11 DCIT VS. M/S. SHAKUN AYURVED PVT. LTD. AN AMOUNT OF RS. 12,778/- BEING 50% OF THE MONEY GI VEN TO M/S. HARE KRISHNA MOVEMENT WAS CLAIMED UNDER SECTION 80G. THE SAID D EDUCTION WAS ALLOWED BY THE CPC UNDER SECTION 154 OF THE IT ACT. HOWEVER, DESPITE T HE ORDER PASSED BY THE CPC, THE AO WAS NOT GIVING EFFECT TO THE SAID ORDER. IN OUR OP INION, THE AO IS BOUND TO GIVE EFFECT TO THE CPC ORDER PASSED UNDER SECTION 154 OF THE IT AC T. WE ACCORDINGLY DIRECT THE AO TO GIVE EFFECT TO THE CPC ORDER PASSED UNDER SECTION 1 54 FOR 80G. ACCORDINGLY THE CROSS OBJECTION OF THE ASSESSEE IS ALLOWED. 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED AND CROSS OBJECTION OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 27/11/2015 . SD/- SD/- VH-VKJ-EHUK YFYR DQEKJ (T.R. MEENA) (LALIET KUMAR) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 27/11/2015 DAS/ VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- DY. COMMISSIONER OF INCOME-TAX, CIRC LE-7, JAIPUR. 2. IZR;FKHZ@ THE RESPONDENT- M/S. SHAKUN AYURVED PVT. LTD., JAIP UR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDRVIHY@ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 346/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR