The ACIT, Circle-4(1), Visakhapatnam V. M/s R K Hair Products Pvt. Ltd., Visakhapatnam

ITA 425/VIZ/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 2761 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-10-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 07-10-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 04-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T L PETER
• Section: 10B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO S . 425&426 /VIZAG/ 20 10 ASSESSMENT YEAR S : 2005 - 06 & 2007 - 08 AC IT CIRCLE - 4(1) VISAKHAPATNAM M/S. R.K. HAIR PRODUCTS PVT. LTD. VISAKHAPATNAM (APPELLANT) VS. (RESPONDENT) PAN NO.AACCR 8421R APPELLANT BY: SHRI T.L. PETER, DR RESPONDENT BY: SHRI G.V.N. HARI, CA ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER : - THE SE APPEALS ARE PREFERRED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A) ON COMMON GROUNDS WHICH ARE AS UNDER: - 1. WHETHER THE PROCESS OR STEPS TAKEN FOR CLEANING, COLOURING, CONDITIONING AND STANDARDIZING THE HAIR IS CONSIDERED AS MANUFACTURING ACTIVITY THOU GH IT INVOLVES NOT MORE THAN PROCESSING ACTIVITY. 2. WHETHER THE CIT(A) IS CORRECT IN TREATING THE PROCESS OF RAW HAIR INTO WIGS, HAIRPIECES, PREBONDED STRANDS AND WEFT HAIRS ETC., AS MANUFACTURING ACTIVITY . 2. DURING THE COURSE OF HEARING OF THE APPEAL, TH E LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION THAT CIT(A) HAS ADJUDICATED THE IMPUGNED ISSUE FOLLOWING THE ORDER OF THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2006 - 07 IN WHICH THE TRIBUNAL HAS HELD THAT THE ACTIVITIES UNDERT AKEN BY THE ASSESSEE ARE MANUFACTURING ACTIVITIES AND THE ASSESSEE IS ENTITLED FOR DEDUCTION U/S 10B OF THE ACT. THE ORDER OF THE TRIBUNAL HAS NOT BEEN REVERSED SO FAR, THEREFORE, THE SUBORDINATE AUTHORITIES ARE BOUND TO FOLLOW THE ORDER OF THE APPELLATE AUTHORITIES. BY FOLLOWING THE ORDER OF THE TRIBUNAL, THE CIT(A) HAS NOT COMMITTED ANY ERROR. THEREFORE, THE ORDER PASSED BY THE CIT(A) DESERVES TO BE CONFIRMED. THE ORDER OF THE TRIBUNAL IS 2 ALSO PLACED ON RECORD FOR PERUSAL. THE LD. D.R. DID NOT DISPUT E THIS FACTUAL ASPECT. 4. HAVING CAREFULLY EXAMINED THE ORDER OF THE CIT(A), WE FIND THAT HE HAS DECIDED THE ISSUE FOLLOWING THE ORDER OF THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR A.Y. 2006 - 07 OF WHICH COPY IS PLACED ON RECORD. SINCE THE CIT(A) HAS ADJ UDICATED THE ISSUE IN TERMS OF THE ORDER OF THE TRIBUNAL, WE FIND NO INFIRMITY IN HIS ORDER AND ACCORDINGLY WE CONFIRM THE SAME. 5. IN THE RESULT, THE APPEALS OF THE REVENUE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON 8.10 .20 10 SD/ - SD/ - ( BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 8 TH OCTOBER , 20 10 COPY TO 1 ACIT, CIRCLE - 4(1), VISAKHAPATNAM 2 M/S. R.K. HAIR PRODUCTS PVT. LTD., 10 - 50 - 22 , SIRIPURAM, VISAKHAPATNAM 3 THE CI T, VISAKHAPATNAM 4 THE CIT (A) , VISAKHAPATNAM 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKH APATNAM