The Asstt. Commissioner of Income-tax, Amritsar. V. M/s. Sanjay Weaving Pvt. Ltd, Amritsar.

ITA 36/ASR/2013

• Counselvise Citation: 3620914 RSA 2013
• Duration Of Justice: 2 year(s) 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 09-12-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 14-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PADAM BAHL
• Keywords: Tax effect
• Section: 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH; AMRITSAR BEFORE SH. A.D. JAIN, JUDICIAL MEMBER AND SH. T.S. KAPOOR, JUDICIAL MEMBER ITA NO.36(ASR)/2013 ASSESSMENT YEAR:2004-05 PAN: AAAFE5499B ASSTT. COMMR. OF INCOME TAX, VS. M/S. SANJAY WEAVIN G P. LTD., CIRCLE-IV, AMRITSAR. AMRITSAR. (APPELLANT) (RESPONDENT) APPELLANT BY:SMT. RATINDER KAUR, DR RESPONDENT BY:SH.PADAM BAHL, CA DATE OF HEARING: 14/12/2015 DATE OF PRONOUNCEMENT: 14/12/2015 ORDER PER A.D.JAIN, JM: THIS IS DEPARTMENTS APPEAL FOR THE ASSESSMENT YEA R 2004-05 AGAINST THE ORDER OF THE CIT(A), BATHINDA DATED 05. 11.2012. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE C ASE THE LD. CIT(A) HAS GROSSLY ERRED IN GIVING RELIEF ON ACCOUN T OF EXPORT INCENTIVES AMOUNTING TO RS.1,50,04,432/-, (EXCISE D UTY REFUND) OF RS.57,21,663/- (DISCOUNT) OF RS.2,31,893 /- AND INSURANCE CLAIM OF RS.4,41,035/- FOR THE PURPOSE OF SECTION 80HHC OF THE INCOME TAX ACT, 1961 WHICH WERE NOT AL LOWALE CONSIDERING THE JUDGMENT OF THE HONBLE SUPREME COU RT IN THE CASE OF LIBERTY INDIA VS. COMMISSIONER OF INCOM E TAX (2009) 183 TAXMAN 349 (SC). 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE THE LD. CIT(A) HAS GROSSLY ERRED IN GIVING RELIEF ON ACCOUN T OF FABRICATION CHARGES AMOUNTING TO RS.31,83,911/- AND SIZING CHARGES AMOUNTING TO RS.7,26,972/- WHICH WERE ALLOW ABLE ONLY WHEN THE PRODUCT ULTIMATELY EXPORT OUTSIDE I NDIA BY THE PARTIES FOR WHOM THE JOB WORK WAS DONE. BUT IN THIS CASE THE ASSESSEE WAS DOING JOB WORK OF FABRICATION CHARGES AND SIZING CHARGES LARGELY FOR ITS SISTER CONCERNS AND THESE JOB WORKS CHARGES HAVE NO CONNECTION WITH EXPORT AC TIVITIES OF THE ASSESSEE WHICH WAS POINTED BY THE AO IN TH E ASSESSMENT ORDER. THE LD. CIT(A) HAS IGNORED THIS F INDING OF THE AO. 2. AT THE TIME OF HEARING THE LD. COUNSEL FOR THE A SSESSEE RAISED A PRELIMINARY OBJECTION THAT THE TAX EFFECT INVOLVED IN THE REVENUES APPEAL IS LESS THAN RS.10 LACS. THEREFORE, THE PRESENT APP EAL FILED BY THE DEPARTMENT MAY BE DISMISSED, AS THE SAME IS NOT MAI NTAINABLE BEING CONTRARY TO CBDTS INSTRUCTION NO.21 OF 2015 DATED 10.12.2015. 3. ON THE OTHER HAND, THE LD. DR RELIED UPON THE OR DER OF THE ASSESSING OFFICER. 4. AFTER HEARING BOTH THE PARTIES, IT IS SEEN THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.10,00,000/-. HENCE, AS PER CBDT INSTRUCTION NO. 21 OF 2015, DATED 10 TH DEC., 2015, WHICH IS BINDING ON THE DEPARTMENT, THE DEPARTMENT IS PRECLUDED FROM FI LING THE PRESENT APPEAL, AS THIS INSTRUCTION IS APPLICABLE RETROSPEC TIVELY. THEREFORE, IN OUR CONSIDERED OPINION, THE SAID INSTRUCTION OF CBDT IS BINDING UPON THE DEPARTMENT AND THE PRESENT APPEAL HAS BEEN FILED CO NTRARY TO THE SAID INSTRUCTION ISSUED BY THE CBDT. ACCORDINGLY, THE APPEAL FILED BY THE REVENUE IS DISMISSED, AS NOT MAINTAINABLE. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14TH DECEMBER, 2015. SD/- SD/- (T.S. KAPOOR) (A.D. JAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 14/12/2015 /SKR/ COPY OF ORDER FORWARDED TO: 1. THE ASSESSEE:M/S. SANJAY WEAVING P. LTD. AMRITSA R. 2. THE ACIT, CIR.IV, ASR. 3. THE CIT(A), ASR. 4. THE CIT, ASR.. 5. THE SR. DR, ITAT, ASR. TRUE COPY BY ORDER