ACIT, CHENNAI V. M/s. Venture Lighting (India) Ltd., CHENNAI

ITA 65/CHNY/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 77303 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-05-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 01-05-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 08-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S SRIDHAR
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , . !' , # $ BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER ./ I.T.A.NOS.64 & 65/MDS./2014 ( / ASSESSMENT YEARS : 2005-06 & 2006-07 ) THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE III(4), CHENNAI 600 034. VS. M/S.VENTURE LIGHTING INDIA LIMITED , PLOT NO.A-30, D-5,PHASE-II, MEPZ,TAMBARAM, CHENNAI 600 045. PAN AAACA 9284 H ( %& / APPELLANT ) ( '(%& / RESPONDENT ) / APPELLANT BY : SHRI SHAJI P JACOB, ADDL. CIT DR / RESPONDENT BY : SHRI S.SRIDHAR,ADVOCATE / DATE OF HEARING : 01.05.2014 ! /DATE OF PRONOUNCEMENT : 23.05.2014 ) / O R D E R PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: THESE APPEALS ARE FILED BY THE REVENUE AGAINST TH E COMMON ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-I II, CHENNAI DATED 16.09.2013 PASSED UNDER SECTION 143(3), R.W.S . 147 & 250 OF ITA NO. 65 & 65/MDS/14 VENTURE LIGHTING INDIA LTD 2 THE ACT FOR THE ASSESSMENT YEARS 2005-06 & 2006-07 RESPECTIVELY. SINCE THE ISSUES AND GROUNDS FOR BOTH THE APPEALS A RE COMMON, THEY ARE DISPOSED OFF BY THIS CONSOLIDATED ORDER. 2. THE REVENUE HAS RAISED THREE ELABORATE GROUNDS IN ITS APPEALS, FOR THE ASSESSMENT YEARS 2005-06 & 2006-07 , HOWEVER, THE CRUX OF THE ISSUES IS THAT THE REVENUE IS AGGRIEVED BY THE ORDER OF THE LD. CIT (A), WHO HAD DIRECTED THE LD. ASSESSING OF FICER TO REDUCE THE EXPENSES INCURRED TOWARDS FREIGHT AND INSURANCE FRO M BOTH EXPORT TURNOVER AS WELL AS THE TOTAL TURNOVER FOR COMPUTIN G THE DEDUCTION U/S.10A OF THE ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS ENGAGED IN THE BUSINESS OF MANUFACTURING & EXPORT OF METAL HAL IDE LAMPS. THE ASSESSEE HAD FILED ITS RETURN OF INCOME FOR THE ASS ESSMENT YEARS 2005-06 & 2006-07 ON 30.10.2005 AND 25.11.2006 RESP ECTIVELY, THEREAFTER FOR BOTH THE ASSESSMENT YEARS, ASSESSMEN T WAS COMPLETED U/S. 143(3) OF THE ACT WHEREIN THE LD. ASSESSING OF FICER DENIED TO EXCLUDE FREIGHT AND INSURANCE EXPENSES FROM THE TOT AL TURNOVER FOR THE ITA NO. 65 & 65/MDS/14 VENTURE LIGHTING INDIA LTD 3 PURPOSE OF CALCULATING DEDUCTION U/S. 10A OF THE AC T FOR BOTH THE ASSESSMENT YEARS. ON APPEAL, FOR BOTH THE ASSESSME NT YEARS THE LD. CIT (A) FOLLOWING THE DECISION OF SPECIAL BENCH IN THE CASE OF ITO VS. SAK SOFT LTD., (ITA NOS.691& 1583/MDS./200 7, DT.06.03.2009) REPORTED IN [2009] 20 DTR 514 DIRECT ED THE LD. ASSESSING OFFICER TO REDUCE FREIGHT AND INSURANCE C HARGES BOTH FROM THE EXPORT TURNOVER AND ALSO FROM THE TOTAL TURNOVE R FOR COMPUTING DEDUCTION U/S. 10A OF THE ACT. 4. BEFORE US, THE LD. D.R. THOUGH ADMITTED THAT T HE ISSUE IS COVERED BY THE DECISION OF THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF ITO VS. SAK SOFT LTD., CITED SUPRA, RELIED ON THE DECISION OF THE ORDER OF THE LD. ASSESSING OFFICER AND ARGUED I N SUPPORT OF THE SAME, WHILE AS THE LD. A.R. ON THE OTHER HAND PRAYE D THAT THE ORDER OF THE LD. CIT (A) MAY BE CONFIRMED SINCE THE LD. C IT (A) HAD ONLY FOLLOWED THE DECISION OF THE SPECIAL BENCH OF THE T RIBUNAL WHICH IS BINDING ON THE TRIBUNAL. ITA NO. 65 & 65/MDS/14 VENTURE LIGHTING INDIA LTD 4 5. AFTER HEARING BOTH SIDES, WE DO NOT HAVE ANY HE SITATION TO CONFIRM THE ORDER OF THE LD. CIT (A) BECAUSE THE LD . CIT (A) HAD FOLLOWED THE DECISION OF THE SPECIAL BENCH OF THE T RIBUNAL, WHICH WE ARE ALSO BOUND TO FOLLOW. IT IS ORDERED ACCORDING LY. 6. IN THE RESULT, THE APPEALS OF REVENUE ARE DISMIS SED. ORDER PRONOUNCED ON 23 RD MAY, 2014 AT CHENNAI. SD/- SD/- (V. DURGA RAO) (A.MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 23 RD MAY, 2014. K S SUNDARAM. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE ITA NO. 65 & 65/MDS/14 VENTURE LIGHTING INDIA LTD 5