ACIT, Chandigarh V. M/s Shivalik Agro Chemicals, Chandigarh

ITA 709/CHANDI/2015

• Counselvise Citation: 70921514 RSA 2015
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Next Hearing Date: 08-10-2015
• Assessment Year: 2012-2013
• Appeal Filed On: 06-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Keywords: Capital receipt

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS. RANO JAIN, ACCOUNTANT MEMBER ITA NO. 709/CHD/2015 ASSESSMENT YEAR: 2012-13 THE ACIT, VS M/S SHIVALIK AGRO CHEMICALS CIRCLE 2(1), NEELAM CINEMA COMPLEX, AAYAKAR BHAWAN, SECTOR 17-E, SECTOR 17-E, CHANDIGARH. CHANDIGARH. PAN: AALFS7372Q (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANJIT SINGH RESPONDENT BY : NONE DATE OF HEARING : 08.10.2015 DATE OF PRONOUNCEMENT : 09.10.2015 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDE R OF LD. CIT(APPEALS)-I CHANDIGARH DATED 19.05.2015 F OR ASSESSMENT YEAR 2012-13, CHALLENGING THE ORDER OF L D. CIT(APPEALS) IN HOLDING THAT EXCISE DUTY REFUND AMOUNTING TO RS. 3.81 CR WAS A CAPITAL RECEIPT AND WAS NOT TO BE INCLUDED AS INCOME IN THE HANDS OF THE ASSESSEE. 2 2. BRIEFLY THE FACTS OF THE CASE ARE THAT ASSESSEE HAD RECEIVED EXCISE DUTY REFUND OF RS. 3.81 CR AND ASSE SSEE CLAIMED DEDUCTION UNDER SECTION 80IC OF THE ACT ON THE SAME. THE ASSESSEE SUBMITTED BEFORE ASSESSING OFFI CER THAT ISSUE HAD BEEN DECIDED BY ITAT CHANDIGARH BENCH IN ITS FAVOUR IN ASSESSMENT YEAR 2007-08 TO 2010-11 AND SO , THE DEDUCTION IS ALLOWABLE. THE ASSESSING OFFICER OBSE RVED THAT SINCE THE MATTER WAS PENDING BEFORE HON'BLE PUNJAB & HARYANA HIGH COURT, THEREFORE HE DID NOT ALLOW DEDU CTION UNDER SECTION 80IC OF THE ACT ON THE EXCISE DUTY RE FUND. 3. THE LD. CIT(APPEALS) NOTED THAT SIMILAR DISALLOW ANCE WAS MADE IN ASSESSMENT YEAR 2007-08 AND THE ITAT CHANDIGARH BENCH VIDE ORDER DATED 20.12.2011 IN ITA 968/2010 ALLOWED THE APPEAL OF THE ASSESSEE. THE L D. CIT(APPEALS), FOLLOWING THE ORDER OF THE TRIBUNAL, DELETED THE ADDITION AND ALLOWED THIS GROUND OF APPEAL OF T HE ASSESSEE. 4. THE LD. DR FAIRLY STATED THAT THE ISSUE HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE BY ITAT CHANDIGAR H BENCH IN THE CASE OF SAME ASSESSEE, EVEN IN SUBSEQU ENT ASSESSMENT YEAR 2010-11 IN ITA 887/2013 VIDE ORDER DATED 17.01.2014. COPY OF THE ORDER IS PLACED ON RECORD IN WHICH THE TRIBUNAL FOLLOWING ITS EARLIER DECISION FOR ASS ESSMENT YEAR 2007-08 ALLOWED THE CLAIM OF ASSESSEE. THE IS SUE IS, THEREFORE, COVERED IN FAVOUR OF THE ASSESSEE BY EAR LIER ORDER OF THE TRIBUNAL. THERE IS NO ERROR IN THE ORDER OF LD. CIT(APPEALS) IN FOLLOWING THE ORDER OF THE TRIBUNAL . 3 FURTHER, MERELY BECAUSE APPEAL OF REVENUE IS PENDIN G IN HIGH COURT, IS NO GROUND FOR ASSESSING OFFICER TO M AKE THE DISALLOWANCE AGAINST THE ASSESSEE WITHOUT REASONS. THE DEPARTMENTAL APPEAL IS, THEREFORE, DISMISSED. 5. IN THE RESULT, DEPARTMENTAL APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. ` SD/- SD/- (RANO JAIN) (BHA VNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBE R DATED: 9 TH OCT., 2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT,DR ASSISTANT REGISTRAR, ITAT/CHD