DCIT, Cirlce-2(1), Hyd, Hyderabad V. Kakatiya Cement Sugar & Industries Ltd., Hyd, Hyderabad

ITA 412/HYD/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 6146 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-10-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 28-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GVSS GOPINATH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA.NO.412/HYD/2016 ASSESSMENT YEAR 2011-2012 DCIT, CIRCLE-2(1) HYDERABAD. VS. M/S. KAKATIYA CEMENT SUGAR & INDUSTRIES LTD., HYDERABAD. PAN AABCK1868 (APPELLANT) (RESPONDENT) FOR REVENUE : MR. GVSS GOPINATH FOR ASSESSEE : -NONE- DATE OF HEARING : 18.10.2016 DATE OF PRONOUNCEMENT : 18.10.2016 ORDER PER D. MANMOHAN, V.P. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A)-IX, HYDERABAD AND IT PERTA INS TO THE A.Y. 2011-2012. THE FOLLOWING GROUNDS WERE URGED BY THE REVENUE. 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WHETHE R THE CIT(A) IS CORRECT IN LAW IN HOLDING THAT COGENERATI ON POWER PLANT IS AN INDEPENDENT UNDERTAKING ELIGIBLE FOR DE DUCTION UNDER SECTION 80IA OF THE INCOME TAX ACT, 1961 WHEN THE OPERATIONS ARE INTEGRATED WITH THE EXISTING SUGAR P LANT. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WHETHER THE CIT(A) IS CORRECT IN LAW IN HOLDING THAT GENERATION OF LP STEAM WHICH IS A WASTE PRODUCT WITH NO VALUE IS EQU AL TO GENERATION OF POWER WHICH IS ELIGIBLE FOR DEDUCTION UNDER SECTION 80IA OF THE INCOME TAX ACT 1961. 2 ITA.NO.412/HYD/2016 M/S. KAKATIYA CEMENT SUGAR & INDUSTRIES LTD., HYDERABAD. 3. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WHETHER THE CIT(A) IS CORRECT IN LAW IN HOLDING THAT LP STEAM H AS DEFINITE VALUE WHERE AS SUCH LP STEAM HAS NO MARKET VALUE AND IN FACT A MARKETABLE COMMODITY. 2. NONE APPEARED FOR THE ASSESSEE. WE HAVE HEARD THE LD. D.R. AND CAREFULLY PERUSED THE RECORD. AS COULD BE NOTICED FROM THE ORDER PASSED BY THE LD. CIT(A), DEDUCTION UND ER SECTION 80IA WAS HELD TO BE ELIGIBLE HAVING REGARD TO THE FACT THAT UNDER IDENTICAL CIRCUMSTANCES, THE ITAT, HYDERABAD BENCH IN ASSESSEES OWN CASE FOR THE A.YS. 2007-2008 TO 2009- 2010 ADJUDICATED THE ISSUE IN FAVOUR OF THE ASSESSEE. THE L D. D.R. DID NOT DISPUTE THE FACTUAL MATRIX OF THE CASE. 3. HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER PASSED BY THE LD. CIT(A) SINCE THE VIEW TAKEN BY THE LD. CIT(A) IS IN CONFORMITY WITH THE CONCLUSIONS REACHED BY THE ITAT IN ASSESSEES OWN CA SE FOR THE EARLIER YEARS. AS PRONOUNCED IN THE OPEN COURT, THE A PPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 18.10.2016. SD/- SD/- (B. RAMAKOTAIAH) (D.MANMOHAN) ACCOUNTANT MEMBER VICE PRES IDENT HYDERABAD, DATED 18 TH OCTOBER, 2016 VBP/- COPY TO 1. THE DCIT, CIRCLE-2(1), 8 TH FLOOR, B BLOCK, I.T. TOWERS, A.C. GUARDS, HYDERABAD. 2. M/S. KAKATIYA CEMENT SUGAR & INDUSTRIES LTD., H. NO.1-10-140/1, GURUKRUPA, ASHOK NAGAR, HYDERABAD. 3. CIT(A)-9, 2 ND FLOOR ANNEXE, AAYAKAR BHAVAN, BASHEERBAGH, HYDERAB AD 500 004. 4. PR. CIT-2, HYDERABAD. 5. D.R. I.T.A.T. A BENCH, HYDERABAD. 6. GUARD FILE