ACIT, Circle - 47, Kolkata, Kolkata V. Shree Ram Saw Mill, Howrah

ITA 462/KOL/2012

• Counselvise Citation: 46223514 RSA 2012
• Duration Of Justice: 3 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-07-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 27-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMITAVA ROY
• Assessee Lawyers: N O N E
• Section: 143(3); 80IB

Judgement Text

I.T.A. NO.: 462/ KOL. / 2012 ASSESSMENT YEAR : 2008-09 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA C BENCH, KOLKATA BEFORE SHRI PRAMOD KUMAR (ACCOUNTANT MEMBER), AND SHRI MAHAVIR SINGH (JUDICIAL MEMBER) I.T.A. NO.: 462/ KOL. / 2012 ASSESSMENT YEAR : 2008-09 ASSISTANT COMMISSIONER OF INCOME TAX, ..AP PELLANT CIRCLE-47, KOLKATA, -VS.- SHREE RAM SAW MILL, ...RESPONDENT, 16, P.T.R. SIDING, SHIBPUR, HOWRAH-711 102 [PAN : AANFS 0170 N] APPEARANCES BY: SHRI AMITAVA ROY, SR. D.R., FOR THE APPELLANT N O N E, FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : JULY 26, 2012 DATE OF PRONOUNCING THE ORDER : JULY 26, 2012 O R D E R PER PRAMOD KUMAR: 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF COMMISSIONER OF INCOME TAX (APPEALS) S ORDER DATED 04.11.2011 IN THE MATTER OF ASSESSMENT U/S. 143(3) OF THE INCOME TAX ACT, 1961, FOR THE ASSESSMENT YEAR 2008-09, ON THE FOLLOWING GROUNDS :- (1) THAT CIT(A)-XXX, KOLKATA HAS ERRED IN LAW AND O N FACTS IN ACCEPTING THE ASSESSEES SUBMISSION AND IN DIREC TING THE A.O. TO ALLOW DEDUCTION U/S. 80IB AFTER EXAMINATION OF ASSESSEES CALCULATION. I.T.A. NO.: 462/ KOL. / 2012 ASSESSMENT YEAR : 2008-09 PAGE 2 OF 3 (2) THAT THE LD. CIT(A)-XXX, KOLKATA HAS ERRED IN L AW AND ON FACTS IN ACCEPTING THE ASSESSEES SUBMISSION REG ARDING PROFIT MADE BY THE ASSESSEE ON MANUFACTURING ALSO . 2. ON A PERUSAL OF THE IMPUGNED ORDER, HOWEVER, WE FIND THAT THE ISSUE IN APPEAL IS SQUARELY COVERED BY A COORDINATE BENCHS DECISION IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2005-06 . HONBLE CALCUTTA HIGH COURT HAS ALSO CONFIRMED THE SAID ORDER OF THE COORDINATE BENCH. THESE FACTS ARE CLEARLY DISCERNABLE FROM THE FOLLOW ING OBSERVATIONS OF THE CIT(APPEALS) :- 1.2. THE SUBMISSIONS OF THE APPELLANT HAVE BEEN CO NSIDERED AND IT IS SEEN THAT IN THE APPELLANTS OWN CASE UNDER IDEN TICAL CIRCUMSTANCES THE HONBLE ITAT IN ITS ORDER IN APPE AL NO. ITA NO.588(KOL)/2007 WHILE RELYING ON THE DECISION OF H ONBLE ORISSA HIGH COURT IN CST VS. PATEL SAW MILLS IN 4 CTR 1 AN D IN THE CASE OF BAJORIA FAMILY TRUST VS. FIRST ITO 12 LTD 181 HELD THAT THE APPELLANT IS ENTITLED TO DEDUCTION U/S.80IB. THE AP PELLANT HAS ALSO PROVIDE A COPY OF THE ORDER OF HONBLE CALCUTTA HIG H COURT IN ITA NO.156 OF 2009 WHEREIN HONBLE COURT HAS DISMISSED THE REFERENCE OF THE DEPARTMENT IN THE APPELLANTS OWN CASE FOR A.Y. 2005-06 WHILE UPHOLDING THE ORDER OF ITAT. THEREFORE, RESPECTFULL Y FOLLOWING THE DECISION OF HONBLE ITAT IN ITA NO. 588(KOL)/2007 D ATED 7.9.2007, IT IS HELD THAT DEDUCTION U/S.80IB IS ALLOWABLE FOR MANUFACTURING ACTIVITY. HOWEVER, PROFIT ON TRADING THROUGH HIGH S EA SALE IS HOWEVER NOT ENTITLED FOR DEDUCTION. ACCORDINGLY, A.O. IS DI RECTED TO OBTAIN DETAILS REGARDING PROFIT EARNED FOR MANUFACTURING A ND PROFIT EARNED FROM HIGH SEA SALES AND TO ALLOW DEDUCTION U/S.80IB FOR PROFIT EARNED IN MANUFACTURING ONLY AND PROFIT EARNED ON TRADING IS NOT ENTITLED FOR DEDUCTION U/S. 80IB. 3. LD. DEPARTMENTAL REPRESENTATIVE DID NOT DISPUT E THE FACTS EMBEDDED IN THE ABOVE OBSERVATIONS, NOR DID HE BRIN G TO OUR NOTICE ANY DECISION OF THE HIGHER JUDICIAL FORUM HOLDING TO TH E CONTRARY TO THE JUDICIAL PRECEDENTS REFERRED TO IN THE ABOVE OBSERV ATIONS. I.T.A. NO.: 462/ KOL. / 2012 ASSESSMENT YEAR : 2008-09 PAGE 3 OF 3 4. IN VIEW OF THE ABOVE POSITION, AND RESPECTFULLY FOLLOWING THE COORDINATE BENCH DECISION, WE UPHOLD THE IMPUGNED O RDER AND DECLINE TO INTERFERE IN THE MATTER. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH DAY OF JULY, 2012. SD/- SD/- MAHAVIR SINGH PRAMOD KUMAR (JUDICIAL MEMBER) (ACC OUNTANT MEMBER) KOLKATA, THE 26 TH DAY OF JULY, 2012 COPIES TO : (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ETC ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.