DCIT, Jaipur V. M/S SAGUN GEMS P. LTD., Jaipur

ITA 698/JPR/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 87507 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 27-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS NEENA JEPH
• Assessee Lawyers: G G MUNDRA

Judgement Text

ITA NO. 698/JP/2012 M/ S. SAGUN GEMS (P) LTD. VS. DCIT, CIRCLE- 2, JAIPUR 1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH, JAIPUR (BEFORE SHRI R.P. TOLANI AND SHRI T.R. ME ENA) ITA NO. 698/JP/2012 ASSESSMENT YEAR: 2009-10 PAN : AAHCS 5629 M THE DCIT VS. M/S. SAGUN GEMS (P) LTD. CIRCLE- 2 CHOME HOUSE, C-SCHEME JAIPUR JAIPUR (APPELLANT) (RESPONDENT) DEPARTMENT BY: MRS. NEENA JEPH ASSESSEE BY : SHRI G.G. MUNDRA DATE OF HEARING: 18-11-2014 DATE OF PRONOUNCEMENT: 09-01-2015 ORDER PER R.P. TOLANI, JM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A)- 1, JAIPUR DATED 16-05-2012 WHEREIN THE REVE NUE HAS RAISED FOLLOWING GROUND IN ITS APPEAL. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) IS ERRED IN ALLOWING THE RELIEF BY GRANTING EXEMPTION U/S 10A TO THE ASSESSEE DESPITE THE FACT THAT THE CONDITIONS LAID DOWN IN THE SECTION 10A()(II) O F THE I.T. ACT , 1961 FOR CLAIMING THE DEDUCTION ARE NOT FULFILLED. 2.1 AT THE OUTSET OF HEARING, THE LD. AR OF THE ASS ESSEE CONTENDS THAT THE ISSUE IN QUESTION AS TO ELIGIBILITY OF EXEMPTION U/ S 10A IS SQUARELY COVERED IN ITA NO. 698/JP/2012 M/ S. SAGUN GEMS (P) LTD. VS. DCIT, CIRCLE- 2, JAIPUR 2 FAVOUR OF THE ASSESSEE BY THE ORDER OF THIS BENCH I N ASSESSEE'S OWN CASE WHICH HAS BEEN RELIED ON BY THE LD. CIT(A) IN HIS O RDER WHILE GRANTING RELIEF BY FOLLOWING OBSERVATIONS. 4.3 I HAVE CAREFULLY PERUSED THE ORDER OF THE AO, SUBMISSIONS OF THE A.R. AND THE ORDER OF THE HON'BLE ITAT, JAI PUR BENCH IN THE CASE OF THE ASSESSEE ITA NO. 777/JP/2011 DATED 20-01-2012 FOR A.Y. 2008-09 ON THE SAME FACTS. ON PAGE 9, PARA 9 OF ITS ORDER THE FOLLOWING FINDING OF FACT HAS BEEN NOTED BY THE HON'BLE ITAT JAIPUR BENCH:- THE ASSESSEE COMPANY IS AN INDEPENDENT UNIT DOING ITS OWN ACTIVITY OF MANUFACTURING AND THEREAF TER THE MATERIAL HAS BEEN SOLD ON THE BASIS OF MARKET P RICE. THEREFORE, THERE IS NO REASON TO HOLD THAT ASSESSEE COMPANY IS A RESTRUCTURED COMPANY OF EARLIER COMPAN Y AND HIT BY PROVISION OF SECTION 10A(2)(II) OF THE A CT. IN VIEW OF THESE FACTS AND CIRCUMSTANCES, WE HOLD THAT LD. CIT(A) WAS JUSTIFIED IN ALLOWING THE SAME IN FAVOUR OF THE ASSESSEE. THE AO HAS NOT BROUGHT ANY NEW ARGUMENTS OR EVIDENC E TO CONTROVERT THE FINDING OF THE HON'BLE ITAT ON S AME FACTS AS DISCUSSED BY THE AO IN THE ASSESSMENT ORDER. I FIND THAT THE MATTER IS COVERED BY THE JUDICIAL PRONOUNCEMENT OF THE HON'BLE ITAT IN FAVOUR OF THE ASSESSEE VIDE ITS ORDER, SUPR A. THE ALLOWANCE OF CLAIM OF DEDUCTION OF RS. 87,83,807/- U/S 10A IS DELETED. IT IS ALSO PLEADED THAT ITAT JAIPUR BENCH JUDGMENT WAS CHALLENGED BY REVENUE BEFORE HON'BLE RAJASTHAN HIGH COURT WHICH CONFIRMED THE ORDER OF THIS BENCH VIDE ITS ORDER DATED 22 ND AUG. 2012 IN THE CASE OF CIT VS. SAGUN GEMS (P) LTD. (IT APPEAL NO. 210 OF 2012 ), 2 53 CTR 614 (RAJ.). ITA NO. 698/JP/2012 M/ S. SAGUN GEMS (P) LTD. VS. DCIT, CIRCLE- 2, JAIPUR 3 SINCE THE ISSUE IN QUESTION IS COVERED BY THE ORDER OF HON'BLE HON'BLE JURISDICTIONAL HIGH COURT (SUPRA), THE REVENUES AP PEAL HAS NO MERIT.. 2.2 THE LD. DR IS HEARD ON THIS ISSUE. 2.3 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. RESPECTFULLY FOLLOWING THE ORD ER OF HONBLE JURISDICTIONAL HIGH COURT IN ASSESSEE'S OWN CASE FO R THE ASSESSMENT YEAR 2008-09 (SUPRA) WHICH AFFIRMED THE ORDER OF THIS BE NCH IN ASSESSEE'S OWN CASE, WE UPHOLD THE ORDER OF THE LD. CIT(A). THUS T HE SOLITARY GROUND OF THE REVENUE IS DISMISSED. 3.0 IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 09 -01-2015 SD/- SD/- (T.R. MEENA) (R.P. TOLANI) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR DATED: 9 TH JAN 2015 *MISHRA COPY FORWARDED TO:- 1.THE DCIT, CIRCLE- 2, JAIPUR 2. M/S. SAGUN GEMS (P) LTD., JAIPUR 3. THE LD. CIT(A) 4. THE LD. CIT BY ORDER 5..THE LD. DR 6.THE GUARD FILE (IT NO. 698/JP/2012) AR ITAT, JAIPUR