The ITO, TDS-3, JAMNAGAR V. M/s. Mitesh Impex, JAMNAGAR

ITA 613/RJT/2012

• Counselvise Citation: 61324914 RSA 2012
• Duration Of Justice: 9 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 22-08-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 09-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VILAS V SHINDE DR CREM
• Assessee Lawyers: KA ML ESH RATHOD CA M
• Keywords: Tax effect

Judgement Text

I , IN THE INCOME TAX APPELLATE TRIBULAL; RAJKOT BENCH, RAJKOT. . . A OC S . . S S BEFORE SHRI T. K. SHARMA JM AND SHRI D. K. SRIVASTAVA AM ITA . NO . 613/RJT/2012 CR R / ASSESSMENT YEAR 200 6 - 07 THE INCOME - TAX OFFICER, TDS - 3, JAMNAGAR. ( / APPELLANT) M/S. MITESH IMPEX, PLOT NO.287 TO 289 & 311 TO 312, GIDC, PHASE - , DARED,JAMNAGAR. PAN :AA DFM 2151M/ RKT M00842 C / / RESPONDENT M / REVENUE BY SHRI VILAS V . SHINDE , DR CREM / ASSESSEE BY SHRI KA ML ESH RATHOD , CA M / DATE OF HEARING 2 2 - 0 8 - 2013 M / DATE OF PRONOUNCEMENT 23 - 08 - 2013 / ORDER . . A , OC S / T. K. SHARMA, J. M. : TH IS APPEAL BY THE REVENUE IS AGAINST THE COMMON ORDER DATED 16 - 08 - 2012 OF LD. CIT (A) - I I, RAJKOT FOR THE ASSESSMENT YEAR S 200 6 - 07 . 2 . T HE FACTS , IN BRIEF, ARE THAT THE ASSESSEE IS A N EOU ENTERPRISE ENG AGED IN THE BUSINESS OF TRADING AND MANUFACTURING OF BRASS AND COPPER PARTS. FOR THE ASSESSMENT YEAR UNDER APPEAL, IT FILED THE RETURN OF INCOME DECLARING TOTAL INCOME OF RS.8,45,280/ - . AO FRAMED THE ASSESSMENT U/S.143(3) OF THE I.T. ACT ON 25 - 08 - 2008 DET ERMINING TOTAL INCOME AT RS.90,96,600/ - AFTER DEDUCTION OF RS.1,86,64,042/ - U/S.10B AND RS.11,208/ - U/S.80IB OF THE I.T. ACT. SUBSEQUENTLY, AO PASSED AN ORDER UNDER SEC.206C (6)/206C(7) OF THE I.T. ACT ON 22 - 03 - 2011 AND INTEREST U/S.206C(7) @ 1% OF RS.71,1 67/ - AS UNDER: - IRON SCRAP RS.1,07,50,741 TCS@1%+SC+10%EC@2% RS, 1,20,623 INTEREST U/S.206C(7)@1% FROM 1/4/2006 TO 23/3/2011 FOR 59 MONTHS RS. 71,167 TOTAL RS.1,91,790 2. ON APPEAL, IN THE IMPUGNED ORDER, THE LD. CIT(A) HELD THAT ASSESSEE I S IMPORTING SCRAP MATERIAL AND AFTER DISMENTALLING THE SAME, VARIOUS ITEMS ARE BEING SEGREGATED FOR USE AS RAW MATERIAL FOR MANUFACTURING THE IRON INGOTS/BILLETS, ITA 613 - 2012 2 THE SUMMARY OF WHICH IS GIVEN BY LD. CIT (A) IN PARA - 6 OF THE IMPUGNED. IN THIS PARA, THE LD. CIT (A) HAS FURTHER HELD THAT ASSESSEE IS MANUFACTURING A SCRAP WHICH IS GENERATED FROM THE MANUFACTURING OR MECHANICAL WORKING OF MATERIALS WHICH ARE NOT USEABLE CONDITION BECAUSE OF THEIR BREAKAGE, CUTTING - UP, WEAR AND OTHER REASONS TAKEN PLACE DURING THE COURSE OF MANUFACTURING ACTIVITY OR MECHANICAL WORKING APPLIED ON SUCH MATERIALS AND SAID PROVISIONS OF SEC.206C ARE NOT APPLICABLE.. HE ACCORDINGLY, HELD THAT AO HAS WRONGLY APPLIED THE PROVISIONS OF SEC.206C OF THE I.T. ACT. AGGRIEVED WITH THE ORDE R OF LD. CIT (A), THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL ON THE FOLLOWING GROUND: - 1 . THE LD. CIT (A) ERRED IN LAW AS WELL AS FACTS OF THE CASE IN DELETING THE ORDER PASSED U/S.206C(6) & 206C(7) OF THE I.T. ACT OF RS.1,20,623/ - & RS.71,167/ - RESPECTIVEL Y BY THE AO. 3. AT THE OUTSET, SHRI KAMLESH RAHOD, CA APPEARED ON BEHALF OF THE ASSESSEE POINTED THAT LD.CIT (A) HAS GIVEN COGENT REASON FOR HOLDING THAT PROVISIONS OF SEC.206C ARE NOT APPLICABLE THEREFORE VIEW TAKEN BY LD. CIT (A) BE UPHELD. WITHOUT PRE JUDICE TO THIS, ASSESSEE RAISED THE ALTERNATIVE CONTENTION THAT AS PER CBDT INSTRUCTION NO.3/2011 ISSUED ON 09 - 02 - 2011 WHEREBY THE MONETARY LIMIT FOR FILING AN APPEAL BY THE DEPARTMENT IS RAISED TO RS.3 LACS AND IT MAY BE HELD THAT THE APPEAL OF THE DEPART MENT IS NOT MAINTAINABLE. 4. SHRI VILAS V . SHINDE, DR APPEARED ON BEHALF OF THE REVENUE COULD NOT CONTROVERT THE AFORESAID CONTENTION RAISED BY THE LD. COUNSEL OF THE ASSESSEE. 5. WE HAVE CAREFULLY GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. IT IS PER TINENT TO NOTE THAT ASSESSEE IS INVOLVED IN MANUFACTURING WHICH IS NOT DISPUTED BY LD. DR THEREFORE PROVISIONS OF SEC.206C ARE NOT APPLICABLE AND LD. CIT (A) IS LEGAL AND FACTUALLY CORRECT IN DELETING THE TCS LEVIED U/S.206C(6) OF THE I.T. ACT AND INTEREST THEREON U/S.206C (7) OF THE I.T. ACT. EVEN OTHERWISE, THE TOTAL TAX EFFECT IS RS.1,19,790/ - , KEEPING IN VIEW OF CBDT INSTRUCTION NO.3/2011 DATED 09 - 02 - 2011, THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE. ITA 613 - 2012 3 6. IN VIEW OF THE FOREGOING, THE APPEAL OF THE REV ENUE IS DISMISSED. 8 . THIS O RDER IS PRONOUNCED IN OP EN COURT ON THE DATE MENTIONED HEREINABOVE. SD/ - SD/ - ( . . D. K. SRIVASTAVA ) ( . . R / T. K. SHARMA) / ACCOUNTANT MEMBER C / JUDICIAL MEMBER / ORDER DATE 23 - 08 - 2013. /RAJKOT NVA/ - 8 CJI TI / COPY OF ORDER FORWARDED TO: - 1 . / APPELLANT - THE INCOME - TAX OFFICER, TDS - 3, JAMNAGAR 2 . / / RESPONDENT - M/S. MI TESH IMPEX, PLOT NO.287 TO 289 & 311 TO 312, GIDC, PHASE - , DARED,JAMNAGAR 3 . I / CONCERNED CIT ( TDS ) ,RAJKOT. 4 . - / CIT (A) - I I, RAJKOT. 5 . CCI , I , / DR, ITAT, RAJKOT 6 . R / G UARD FILE. / BY ORDER TRUE COPY. PRIVATE SECRETARY, ITAT, RAJKOT