ITO, WD-8(3), KOLKATA, Kolkata V. M/s Rajrani Exports Pvt. Ltd., Kolkata

ITA 376/KOL/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4559 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2016
• Appeal Filed By: Department
• Bench Allotted: SMC
• Assessment Year: 2001-2002
• Appeal Filed On: 08-04-2015
• Court: TRIBUNAL
• Department Lawyers: SNEHOTPAL DATTA
• Assessee Lawyers: PAWAN KR AGARWAL
• Section: 143(3); 10B; 2

Judgement Text

I.T.A. NO. 376/KOL./2015 ASSESSMENT YEAR: 2001-2002 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA B(SMC) BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER I.T.A. NO. 376 /KOL/ 2015 ASSESSMENT YEAR: 2001-2002 INCOME TAX OFFICER,................................ .............................APPELLANT WARD-8(3), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 -VS.- M/S. RAJRANI EXPORTS PVT. LTD.,.................... .........................RESPONDENT 7A, PRETORIA STREET, KOLKATA-700 071 [PAN: AABCR 8968 E] APPEARANCES BY: SHRI SNEHOTPAL DATTA, JCIT, D.R., FOR THE DEPARTMENT SHRI PAWAN KR. AGARWAL, FCA, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : JULY 19, 2016 DATE OF PRONOUNCING THE ORDER : AUGUST 19, 2016 O R D E R THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-3, KOLKATA DAT ED 23.01.2015 AND THE SOLITARY ISSUE INVOLVED THEREIN RELATES TO THE DELETION BY THE LD. CIT(APPEALS) OF THE ADDITION OF RS.2,65,02,939/- MA DE BY THE ASSESSING OFFICER BY WAY OF DISALLOWANCE OF ASSESSEES CLAIM FOR EXEMPTION UNDER SECTION 10B OF THE INCOME TAX ACT, 1961. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, W HICH IS ENGAGED IN THE BUSINESS OF PROCESSING, TRADING AND IMPORT OF T EA AND RICE. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILE D BY IT ON 29.10.2001 DECLARING TOTAL INCOME OF RS.1,440/- AFTER CLAIMING EXEMPTION UNDER SECTION 10B AMOUNTING TO RS.2,65,02,939/- IN RESPEC T OF PROFITS FROM TEA BUSINESS. IN THE ASSESSMENT COMPLETED UNDER SECTION 143(3) READ WITH I.T.A. NO. 376/KOL./2015 ASSESSMENT YEAR: 2001-2002 PAGE 2 OF 3 SECTION 147, THE CLAIM OF THE ASSESSEE FOR EXEMPTIO N UNDER SECTION 10B WAS DISALLOWED BY THE ASSESSING OFFICER ON THE GROU ND THAT IT WAS NEITHER MANUFACTURER OF TEA NOR ENGAGED IN THE PRODUCTION O F TEA. ON APPEAL, THE CLAIM OF THE ASSESSEE FOR EXEMPTION UNDER SECTION 1 0B WAS ALLOWED BY THE LD. CIT(APPEALS) BY FOLLOWING THE DECISION DATED 20 .07.2012 OF THE SPECIAL BENCH OF THIS TRIBUNAL IN ASSESSEES OWN CASE IN IT A NO. 2039/KOL/2006 FOR A.Y. 2003-04, WHEREIN THE SIMILAR CLAIM OF THE ASSESSEE FOR EXEMPTION UNDER SECTION 10B WAS ALLOWED BY THE TRIBUNAL. AGGR IEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE REVENUE HAS PREFERRED THI S APPEAL BEFORE THE TRIBUNAL. 3. AT THE TIME OF HEARING BEFORE ME, THE LD. REPRES ENTATIVES OF BOTH THE SIDES HAVE AGREED THAT THE ISSUE INVOLVED IN THIS A PPEAL OF THE REVENUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE AND AGAI NST THE REVENUE BY THE DECISION OF THE SPECIAL BENCH OF ITAT RENDERED IN A SSESSEES OWN CASE FOR A.Y. 2003-04 VIDE ITS ORDER DATED 20.07.2012 PASSED IN ITA NO. 2039/KOL/2006, WHEREIN IT WAS HELD THAT THE ASSESSE E, WHO IS IN THE BUSINESS OF BLENDING AND PROCESSING OF TEA AND EXPO RT THEREOF, CAN BE SAID TO BE MANUFACTURER/PRODUCER OF TEA FOR THE PURPOSE OF SECTION 10A/10B OF THE INCOME TAX ACT, 1961. RESPECTFULLY FOLLOWING TH E SAID DECISION OF THE SPECIAL BENCH OF THIS TRIBUNAL IN ASSESSEES OWN CA SE FOR A.Y. 2003-04, WE UPHOLD THE IMPUGNED ORDER OF THE LD. CIT(APPEALS) A LLOWING THE CLAIM OF THE ASSESSEE FOR EXEMPTION UNDER SECTION 10B AND DI SMISS THIS APPEAL OF THE REVENUE. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON AUGUST 19, 20 16. SD/- (P.M. JAGTAP) ACCOUNTANT MEMBER KOLKATA, THE 19 TH DAY OF AUGUST, 2016 COPIES TO : (1) INCOME TAX OFFICER, WARD-8(3), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 I.T.A. NO. 376/KOL./2015 ASSESSMENT YEAR: 2001-2002 PAGE 3 OF 3 (2) M/S. RAJRANI EXPORTS PVT. LTD., 7A, PRETORIA STREET, KOLKATA-700 071 (3) COMMISSIONER OF INCOME TAX (APPEALS)-3, KOLKA TA; (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.