ACIT, Shimla V. M/s Indus Cosmeceuticals, Shimla

ITA 491/CHANDI/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5390 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 09-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N K SAINI
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A CHANDIGARH BEFORE SHRI D.K.SRIVASTAVE, ACCOUNTANT MEMBER AND MS SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 491/CHD/2011 ASSESSMENT YEAR: 2007-08 ACIT, CIRCLE, VS. M/S INDUS COSMECEUTICALS, SHIMLA SHIMLA PAN NO. AABF-1380-Q (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI N.K. SAINI RESPONDENT BY : SHRI SUDHIR SEHGAL ORDER PER SUSHMA CHOWLA, JM THE APPEAL BY THE REVENUE IS AGAINST THE ORDER OF CIT(A) SHIMLA DATED 22.2.2011 RELATING TO ASSESSMENT YEAR 2007-08 AGAINST THE ORDER PASSED UNDER SECTION 143(3) OF THE I.T. ACT. 2. THE ONLY GROUND OF APPEAL RAISED BY THE REVENUE IS AS UNDER:- THE LEARNED CIT(A) HAS ERRED IN ALLOWING THE DEDUCTION U/S 80 IB OF THE I.T. ACT BY HOLDING THAT CONVERSION OF HEENA LEAVES INTO HEENA POWDER BY A PROCESS OF MIXING AND GRINDING AMOUNTS TO MANUFACTURE WITHOUT CONSIDERING THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF SACS EAGLE CHICORY VS. CIT (2002) 255 ITR 178 (SC) WHEREIN IT HAS BEEN HELD THAT MERE CRUSHING OF CHICORY ROOTS I NTO CHICORY POWDER CANNOT BE A MANUFACTURING PROCESS. 2 3. THE REVENUE IS AGGRIEVED BY THE ORDER OF CIT(A) IN ALLOWING THE DEDUCTION U/S 80 IB OF THE I.T. ACT BY HOLDING THAT CONVERSATION OF HEENA LEAVES INTO HEENA POWDER BY A PROCESS OF MIXING AND GRINDING AMOUNTS TO MANUFACTURE. 4. WE FIND THAT THE CIT(A) HAD ALLOWED THE CLAIM OF THE ASSESSEE IN TURN RELYING ON THE RATIO LAID DOWN BY THE CHANDIGA RH TRIBUNAL IN ASSESSEES OWN CASE IN ITA NOS. 874 & 875/CHD/2007 VIDE ORDER DATED 25.9.2008 FOR THE ASSESSMENT YEARS 2003-04 & 2004-0 5 AND I.T.A.NO. 116/CHD/2008 RELATING TO ASSESSMENT YEAR 2005-06 VI DE ORDER DATED 27.2.2009. THE TRIBUNAL HAS ALSO ALLOWED THE CLAIM OF THE ASSESSEE IN I.T.A.NO. 54/CHD/2010 RELATING TO ASSESSMENT YEAR 2 006-07 VIDE ORDER DATED 11.3.2010. WE ARE IN CONFORMITY WITH THE ORD ER OF THE CIT(A) IN DIRECTING THE ASSESSING OFFICER TO ALLOW THE CLAIM OF DEDUCTION U/S 80 IB OF THE ACT ON THE MANUFACTURING ACTIVITY CARRIED ON BY THE ASSESSEE. ACCORDINGLY, THE GROUND OF APPEAL RAISED BY THE REV ENUE IS DISMISSED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 21 ST DAY OF JUNE, 2011 SD/- SD/- (D.K.SRIVASTAVA) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 21 ST JUNE , 2011 RATI COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR TRUE COPY BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH 3