M/s. Maass Flange India Pvt. Ltd., Pune V. Deputy Commissioner of Income-tax,

ITA 494/PUN/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9217 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 27-06-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 20-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K GAUTHAM
• Keywords: Principle of natural justice
• Section: 143(3); 10B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE , , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO. 494 /P U N/201 5 / ASSESSMENT YEAR : 20 10 - 1 1 M/S. MAASS FLANGE INDIA PVT. LTD., (FORMERLY KNOWN AS M/S. NAKSHATRA ENTERPRISES PVT. LTD.), PLOT NO.A, MARKAL UDYOG NAGAR, MARKAL, TALUKA KHED, PUNE 412105 . / APPELLANT PAN: A ABCN9163D VS. THE DY . COMMISSIONER OF INCOME TAX, CIRCLE 1( 2 ), PUNE . / RESPONDENT / APPELLANT BY : SHRI KISHOR PHADKE / RESPONDENT BY : SHRI S.K. GAUTHAM / DATE OF HEARING : 27 .0 6 . 2017 / DATE OF PRONOUNCEMENT: 30 . 0 6 .201 7 / ORDER PER SUSHMA CHOWLA, J M : TH IS APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORDER OF A CIT , CIRCLE 14, PUNE , DATED 1 1.02.2015 RELATING TO ASSESSMENT YE AR 20 10 - 11 PASSED UNDER SECTION 143(3) R.W.S. 144C(13) OF THE INCOME - TAX ACT , 1961 (IN SHORT THE ACT) . ITA NO. 494 /P U N/20 1 5 M/S. MAASS FLANGE INDIA PVT. LTD. 2 2 . THE ASSESSEE HAS RAISED THE FOLLOWING GROUND OF APPEAL : - ALL THE GROUNDS OF APPEAL ARE INDEPENDENT AND WITHOUT PREJUDICE TO EACH OTHER 1 . THE HONBLE DRP ERRED IN LAW AND FACTS IN CONFIRMING THE DECISION OF LEARNED ACIT CIRCLE 14, PUNE (AO') OF DISALLOWING THE CLAIM OF DEDUCTION U/S 10B OF THE ITA, 1961 AMOUNTING TO RS.1,27,02,908/ - ; ON THE ANALOGY THAT UNDERTAKING OF THE APPELLANT IS NOT AN ELIGIBLE UNDERTAKING IN ABSENCE OF RATIFICATION BY BOARD OF APPROVAL OF THE APPROVAL GRANTED BY DEVELOPMENT COMMISSIONER; THOUGH THE SAME WAS PLACED BEFORE HONBLE DRP VIDE SUBMISSION DATED 20 TH NOV 2014. 2 . LOWER AUTHORITIES FAILED TO APPRECIATE THAT APPELLANTS APPR OVAL UNDER THE EOU SCHEME HAS BEEN RATIFIED BY THE BOARD OF APPROVAL VIDE LETTER DATED 22 ND AUG 2014 AND HENCE APPELLANT IS ELIGIBLE TO GET THE DEDUCTION U/S 10B OF THE ITA 1961 SINCE ALL RELATED CONDITIONS ARE DULY FULFILLED. 3. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE POINTED OUT THAT THE ISSUE RAISED IN THE PRESENT APPEAL IS AGAINST CLAIM OF DEDUCTION UNDER SECTION 10B OF THE ACT AT RS. 1,27,02,908/ - . THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE POINTED OUT THAT THE SAID CLAIM OF ASSESSEE WAS NOT GRANTED IN THE ABSENCE OF RATIFICATION BY THE BOARD OF APPROVAL OF THE APPROVAL GRANTED BY DEVELOPMENT COMMISSIONER. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE POINTED OUT THAT THE SAID RATIFICATION ORDER WAS PLACED BEFORE THE DISPUTE RESOLUTION PANEL (DRP). HOWEVER, THE SAME HAS NOT BEEN CONSIDERED BY THE DRP AND I N VIEW OF THE SAID RATIFICATION, THE ASSESSEE WAS ENTITLED TO THE CLAIM OF DEDUCTION UNDER SECTION 10B OF THE ACT. OUR ATTENTION WAS DRAWN TO THE SUBMISSIONS DA TED 20.11.2014 PLACED BEFORE THE DRP ALONG WITH LIST OF APPROVAL GIVEN BY THE BOARD OF APPROVAL TO SEVERAL CONCERNS INCLUDING THE ASSESSEE . 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE PLACED RELIANCE ON THE ORDERS OF AUTHORITIES BELOW. ITA NO. 494 /P U N/20 1 5 M/S. MAASS FLANGE INDIA PVT. LTD. 3 5 . WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ASSESSEE HAD CLAIMED DEDUCTION UNDER SECTION 10B OF THE ACT AT RS.1.27 CRORES. THE SAID DEDUCTION CLAIMED BY THE ASSESSEE WAS NOT ALLOWED ON THE GROUND THAT THE ASSESSEE HAD NOT PRODUCED A NY CERTIFICATE GRANTING APPROVAL BY THE DEVELOPMENT COMMISSIONER, WHICH WAS LATER RATIFIED BY THE BOARD OF APPROVAL FOR EOU SCHEME AS MENTIONED IN THE BOARDS INSTRUCTIONS. REFERENCE WAS MADE BY THE ASSESSING OFFICER TO THE LETTER OF DEVELOPMENT COMMISSIO NER OF SEEPZ SPECIAL ECONOMIC ZONE , MUMBAI , GREEN CARD ISSUED TO THE ASSESSEE BY THE DEVELOPMENT COMMISSIONER AND LICENSE FOR PRIVATE BONDED WAREHOUSE UNDER SECTION 58 OF THE CUSTOMS ACT. THE ASSESSING OFFICER REFERRED TO THE LAST PARA OF CORRIGENDUM DATE D 08.05.2009 TO THE INSTRUCTION NO.2/2009 OF THE BOARD DATED 09.03.2009, WHEREIN IT WAS MENTIONED THAT THE APPROVAL GRANTED BY THE DEVELOPMENT COMMISSIONER IN THE CASE OF 100% EXPORT ORIENTED UNIT WOULD BE CONSIDERED VALID, ONCE SUCH AN APPROVAL IS RATIFIE D BY THE BOARD OF APPROVAL FOR EOU SCHEME. THE ASSESSEE FAILED TO FILE THE SAID RATIFICATION BEFORE THE ASSESSING OFFICER AND HENCE, THE CLAIM OF ASSESSEE WAS REJECTED. THE DRP UPHELD THE ORDER OF ASSESSING OFFICER. THE ASSESSEE IS AGGRIEVED BY THE ORDE R OF ASSESSING OFFICER PASSED UNDER SECTION 143(3) R.W.S. 144(13) OF THE ACT, UNDER WHICH IT HA D APPLIED DIRECTIONS OF DRP AND DENIED THE DEDUCTION CLAIMED UNDER SECTION 10B OF THE ACT. THE ASSESSEE BEFORE US HAS FILED THE COPY OF SAID RATIFICATION BY THE BOARD OF APPROVAL OF THE APPROVAL GRANTED BY THE DEVELOPMENT COMMISSIONER VIDE LETTER DATED 22.08.2014. IN VIEW OF THE SAID RATIFICATION, THE ASSESSEE IS ELIGIBLE TO CLAIM DEDUCTI ON UNDER SECTION 10B OF THE ACT. BUT THESE DOCUMENTS WERE NOT FILED BEFORE THE ASSESSING OFFICER , THOUGH WERE FILED BEFORE THE DRP BUT THE SAME WERE NOT CONSIDERED BY THE DRP. SO, FOLLOWING THE PRINCIPLES OF NATURAL JUSTICE, ITA NO. 494 /P U N/20 1 5 M/S. MAASS FLANGE INDIA PVT. LTD. 4 WE REMIT THIS MATTER BACK TO THE FILE OF ASSESSING OFFICER, WHO SHALL VERIFY THE CLAIM OF ASSESSEE VIS - - VIS RATIFICATION ISSUED BY THE BOARD OF APPROVAL OF APPROVAL GRANTED BY DEVELOPMENT COMMISSIONER AND ALLOW THE DEDUCTION UNDER SECTION 10B OF THE ACT. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE THUS, ALLOWED FOR STATISTICAL PURPOSES. 6 . IN THE RES ULT, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 30 TH DAY OF JUNE , 201 7 . SD/ - SD/ - (ANIL CHATURVEDI ) (SUSHMA CHOWLA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 30 TH JUNE , 201 7 . GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT ; 2. THE R ESPONDENT; 3. THE DIT (INTL. TAXATION), PUNE ; 4. THE DRP, PUNE ; 5. THE DR B , ITAT, PUNE; 6. GUARD FILE . / BY ORDER , // TRUE COPY // / ASSISTANT REGISTRAR, , / ITAT, PUNE