DCIT, Rohtak V. M/s. Fine Chemical, Rohtak

ITA 4667/DEL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5165 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 01-06-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 25-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANSHUL PRAKASH
• Assessee Lawyers: MANOJ KUMAR BHITTAL
• Keywords: Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : B : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER ITA NO.4667/DEL/2014 ASSESSMENT YEAR : 2010-11 DCIT, ROHTAK CIRCLE, ROHTAK. VS. FINE CHEMICAL, HISSAR ROAD, ROHTAK. PAN: AABFF5436E (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI MANOJ KUMAR BHITTAL, CA DEPARTMENT BY : SHRI ANSHUL PRAKASH, SR. DR DATE OF HEARING : 16.08.2017 DATE OF PRONOUNCEMENT : 18.08.2017 ORDER PER R.S. SYAL, VP: THIS APPEAL FILED BY THE ASSESSEE ARISES OUT OF TH E ORDER PASSED BY THE CIT(A) ON 25.06.2014 IN RELATION TO THE ASSESS MENT YEAR 2010-11. ITA NO.4667/DEL/2014 2 2. THE FIRST GROUND IS AGAINST THE DELETION OF ADDI TION MADE BY THE ASSESSING OFFICER BY REDUCING THE DEDUCTION CLAIMED BY THE ASSESSEE U/S 80IC(5) READ WITH SECTION 80IA(10) AMOUNTING TO RS. 51,63,333/-, BY ADMITTING ADDITIONAL EVIDENCE UNDER RULE 46A(1). 3. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE REL EVANT MATERIAL ON RECORD. IT CAN BE SEEN THAT THE ASSESSING OFFICER R EDUCED THE AMOUNT OF DEDUCTION U/S 80IA(10) BY TREATING CERTAIN RELATED PARTIES AS UNRELATED AND VICE VERSA. THE ASSESSEE SUBMITTED NECESSARY M ATERIAL BEFORE THE LD. CIT(A) TO DEMONSTRATE THAT THE ASSESSING OFFICER WE NT WRONG IN THIS EXERCISE. THE LD. CIT(A) SENT SUCH MATERIAL TO THE ASSESSING OFFICER AND CALLED FOR THE REMAND REPORT. THE RELEVANT PARTS O F THE REMAND REPORT HAVE BEEN EXTRACTED IN THE IMPUGNED ORDER. AS REGA RDS THIS ISSUE, THE MATTER HAS BEEN DISCUSSED AT PAGE 6 OF THE IMPUGNED ORDER BY RECORDING THE RELEVANT PART OF THE REMAND REPORT, WHICH READS AS UNDER : - AS PER FACTS/DOCUMENTS SUBMITTED BY THE ASSESSEE AND VERIFIED, M/S HITKARI GRAM UDYOG SANGH IS RELATED PARTY AS PER PR OVISIONS OF SECTION 40A(2)(B) OF THE I T ACT 1961 WHERE AS M/S NIRMA LTD IS UNRELATED PARTY. ITA NO.4667/DEL/2014 3 4. FROM THE ABOVE, IT IS CLEAR THAT FIRSTLY, THERE IS NO VIOLATION OF RULE 46A BECAUSE THE LD. CIT(A) CALLED FOR THE REMAND RE PORT FROM THE ASSESSING OFFICER ON THE ADDITIONAL EVIDENCE SUBMIT TED BEFORE HIM AND, SECONDLY, THE AMOUNT OF DEDUCTION WAS REDUCED BY TH E ASSESSING OFFICER DUE TO SOME MISUNDERSTANDING IN THE ASSESSMENT PROC EEDINGS WHICH GOT SET RIGHT AS ADMITTED BY THE ASSESSING OFFICER IN H IS REMAND REPORT. THIS GROUND IS, THEREFORE, NOT ALLOWED. 5. THE SECOND GROUND IS AGAINST THE INCREASE IN THE ASSESEES CLAIM U/S 80IC WHICH WAS REDUCED BY THE ASSESSING OFFICER ON ACCOUNT OF FREIGHT SALES OF RS.26,17,706/-. HERE AGAIN, THE REVENUE H AS INVOKED THE PROVISIONS OF RULE 46A. 6. WE HAVE GONE THROUGH THE RELEVANT RECORD. AGAIN , IT IS FOUND THAT THE LD. CIT(A) CALLED FOR REMAND REPORT FROM THE AS SESSING OFFICER ON THIS ISSUE AS WELL. THE RELEVANT PART OF THE REMAN D REPORT IS REPRODUCED AS UNDER:- THAT THE A.O. HAS COMMENTED AGAINST GROUND NO.3 (I II) AS UNDER: REGARDING FREIGHT SALES OF RS.2617706/- THE ASSESSE E HAS FILED COPY OF LEDGER ACCOUNT OF PURCHASE OF RAW MATERIAL. FREIGHT SALES AMOUNTING TO ITA NO.4667/DEL/2014 4 RS.2617706/- WAS CREDITED IN THE PURCHASE RAW MATER IAL ACCOUNT. FREIGHT OUTWARD AMOUNTING TO RS.2830888/- ALSO DEBI TED TO P&L ACCOUNT. THE FREIGHT SALES ACCOUNT WAS CREDITED TO RAW MATERIAL PURCHASE ACCOUNT INSTEAD OF FREIGHT OUTWARD ACCOUNT . HENCE THERE IS NO EFFECT ON THE PROFIT AS DECLARED BY THE ASSESSEE IN THE PROFIT & LOSS ACCOUNT. 7. FROM THE ABOVE, IT IS CLEAR THAT FIRSTLY, THERE IS NO VIOLATION OF RULE 46A AND, SECONDLY, THE ASSESSING OFFICER HAS HIMSEL F ADMITTED THAT THERE IS NO EFFECT ON THE PROFIT OF THE ASSESSEE AS DECLA RED BY THE ASSESSEE DUE TO THE FREIGHT. WE, THEREFORE, COUNTENANCE THE VIE W TAKEN BY THE LD. CIT(A). 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 18.08.201 7. SD/- SD/- [K. NARASIMHA CHARY] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED, 18 TH AUGUST, 2017. DK ITA NO.4667/DEL/2014 5 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.