Deputy Commissioner of Income-tax, V. Spicer India Ltd., Pune

ITA 487/PUN/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9451 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-05-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 16-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R D ONKAR; SHRIKANT
• Section: 143(3); 10B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE , , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO. 487 /P U N/201 5 / ASSESSMENT YEAR : 20 06 - 07 THE DY. COMMISSIONER OF INCOME TAX, CIRCLE 10, PUNE . / APPELLANT VS. SPICER INDIA LIMITED, 29, MILESTONE, PUNE NASHIK ROAD, KURULLI, CHAKAN, PUNE - 410501 . / RESPONDENT PAN: AAECS1869C / APPELLANT BY : S HRI SUHAS KULKARNI / RESPONDENT BY : S /S HRI R.D. ONKAR & SHRIKANT / DATE OF HEARING : 19 .0 4 . 2017 / DATE OF PRONOU NCEMENT: 17 . 0 5 .201 7 / ORDER PER SUSHMA CHOWLA, J M : TH IS APPEAL FILED BY THE REVENUE IS AGAINST THE ORDER OF CIT (A), PUNE - 6 , DATED 3 0 . 0 1 .201 5 RELATING TO ASSESSMENT YEAR 20 06 - 07 AGAINST ORDER PASSED UNDER SECTION 143(3) R.W.S. 263 OF THE INC OME - TAX ACT , 1961 (IN SHORT THE ACT) . 2 . THE REVENUE HAS RAISED THE FOLLOWING GROUND OF APPEAL: - 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) WAS JUSTIFIED IN ACCEPTING THE AVERAGE PROFIT MARGIN @ 20% AS AGAINST THE AVERAGE MARG IN OF PROFIT AT 10.6% TAKEN BY THE A.O. FOR CALCULATING THE DEDUCTION U/S. 10B OF THE ACT? ITA NO. 487 /P U N/20 1 5 SPICER INDIA LTD. 2 3. THE ASSESSEE HAD FILED THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION DECLARING NIL INCOME, WHEREIN IT HAD CLAIMED THE DEDUCTION UNDER SECTION 10B OF THE ACT. THE ASSESSING OFFICER VIDE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) OF THE ACT, DATED 30.12.2009 DETERMINED THE INCOME AT NIL AFTER ALLOWING THE CLAIM OF DEDUCTION UNDER SECTION 10B OF THE ACT AT RS.13.37 CRORES. THE SAID ASSESSMENT ORDER PASSE D BY THE ASSESSING OFFICER WAS SUBJECTED TO REVISION BY THE COMMISSIONER UNDER SECTION 263 OF THE ACT AND THE ASSESSMENT ORDER WAS HELD TO BE BOTH ERRONEOUS AND PREJUDICIAL TO THE INTERESTS OF REVENUE, SINCE THE ASSESSING OFFICER HAD FAILED TO APPLY THE PR OVISIONS OF SECTION 10B(7) R.W.S. 80IA(8) AND 80IA(10) OF THE ACT. THE COMMISSIONER DIRECTED THE ASSESSING OFFICER TO RESTRICT THE DEDUCTION UNDER SECTION 10B OF THE ACT. THE SAID ORDER OF THE COMMISSIONER UNDER SECTION 263 OF THE ACT WAS APPEALED AGAINS T BY THE ASSESSEE. THE TRIBUNAL IN ITA NO.1 1 12/PN/2012 RELATING TO ASSESSMENT YEAR 2006 - 07 IN BUNCH OF ORDERS, DATED 08.07.2015 HELD THAT THE EXERCISE OF JURISDICTION BY THE COMMISSIONER WAS NOT CORRECT AND HELD THE ASSESSEE TO BE ENTITLED TO CLAIM THE DE DUCTION UNDER SECTION 10B OF THE ACT IN ENTIRETY. 4. PURSUANT TO THE ORDER PASSED BY THE COMMISSIONER UNDER SECTION 263 OF THE ACT, THE ASSESSING OFFICER HAD PASSED THE ORDER UNDER SECTION 143 R.W.S. 263 OF THE ACT , NOT ALLOWING THE CLAIM OF DEDUCTION UND ER SECTION 10B OF THE ACT . THE CIT(A) HOWEVER, PARTIALLY ALLOWED THE CLAIM OF ASSESSEE, AGAINST WHICH THE REVENUE HAS FILED AN APPEAL WHICH IS CAPTIONED APPEAL BEFORE US. IN VIEW OF THE TRIBUNAL SETTING ASIDE THE ORDER OF COMMISSIONER PASSED UNDER SECTIO N 263 ITA NO. 487 /P U N/20 1 5 SPICER INDIA LTD. 3 OF THE ACT, THE APPEAL FILED BY THE REVENUE AGAINST ORDER PASSED UNDER SECTION 143(3) R.W.S. 263 OF THE ACT BECOMES INFRUCTUOUS AND THE SAME IS DISMISSED. 5 . IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED ON THIS 17 TH DAY OF MAY , 201 7 . SD/ - SD/ - (ANIL CHATURVEDI ) (SUSHMA CHOWLA) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 17 TH MAY , 201 7 . GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPEL LANT ; 2. / THE RESPONDENT; 3. ( ) / THE CIT (A), PUNE - 6 ; 4. / THE CIT - 5 , PUNE ; 5. , , / DR A , ITAT, PUNE; 6. / GUARD FILE . / BY ORDER , // TRUE COPY // / ASSISTANT REGISTRAR, , / ITAT, PUNE